VCMRR009  Calculation of the Minimum Requirements Fee

This Verifiable Cost Manual Revision Request (VCMRR) includes language to clarify the calculation of the minimum requirements fee based on Option 1, as endorsed by WMS at the May 6, 2015 meeting. Under Option 1, the minimum requirements costs would be allocated to Resource usage only, excluding third party and storage usage. The minimum requirements fee is a cost incurred by the Resource for not transporting the agreed upon volume of fuel, as stated in their contract terms. The minimum requirements fee is assessed to the Qualified Scheduling Entity (QSE) based on the total amount of fuel purchased and transported, including volumes burned by plants and volumes used for other business transactions. The calculation of the minimum requirements fee will be determined by taking the total fee incurred and allocating it only across the volumes of fuel that have been transported and burned at the plants. This expense will then be used in conjunction with the various eligible fuel costs incurred by the Resource in determining a Resource’s fuel adder for the period.