Create a program: Settlement tab

The Settlement tab defines the settlement method to be used for the curtailment program, as well as some settlement boundaries. You must select a settlement method.

Rate-based programs do not use the settlement parameters on this tab. The rates that are associated with this program are listed for reference.

Creating a Curtailment Program (continued):

1. On the Settlement tab, select or enter values for the following:

   • Settlement Method. From the dropdown menu, select a settlement method from the following options:

     Baseline - Actual

     Determines whether participants meet the requirements of the event and calculates reduction amounts for compensation. This setting takes the event baseline calculated for each meter and subtracts actual (metered) usage.

     Firm Demand Level - Actual

     Determines whether participants meet the requirements of the event and calculates reduction amounts for compensation. This setting takes the firm demand level set for each meter and subtracts actual (metered) usage.

     Baseline - Firm Demand Level

     Determines whether participants meet the requirements of the event and calculates reduction amounts for compensation. This setting takes the event baseline calculated for each meter and subtracts the meter's firm demand level.

   • Use Settlement Cap. The definition and use of this value is dependent upon the settlement method you choose:

     Baseline - Actual

     Limits the maximum settlement percentage that a customer can receive for meeting this curtailment program's requirements.

     Baseline - Firm Demand

     Defines an upper limit to the actual usage allowed in order for compensation to occur. Enter a percentage amount in the field, or accept the default value of 100%. The percentage amount must be a whole number greater than zero (0).

     This setting is not used for the "Firm Demand - Actual" settlement method.

   • Use Settlement Floor. The definition and use of this value is dependent upon the settlement method you choose.

     Note: This setting is not used for the "Baseline - Demand" or "Firm Demand - Actual" settlement methods.

   • Use Settlement Floor Demand Value. The definition and use of this value is dependent upon the settlement method you choose.

     Baseline - Actual

     Defines an absolute minimum reduction amount required for compensation to occur. The absolute value will apply in addition to the settlement floor percentage of Committed Reduction, if both are selected for the program.

     Note: This setting is not used for the "Baseline - Demand" or "Firm Demand - Actual" settlement methods.

   • Use Maximum Price. Select this checkbox to set a maximum price per unit the Operator can use when issuing an event. Enter a dollar amount in the field.

   • Use Minimum Price. Select this checkbox to set a minimum price per unit the Operator can use when issuing an event. Enter a dollar amount in the field.

   • Apply Penalty Price. Select this checkbox to enable penalty prices for the program. Penalty price amounts are set on the Create a program: Event defaults tab. A penalty price is the price per unit of commodity over the baseline or firm demand level that the customer will pay if the settlement method results in a negative value.

   • Use Half Hour Block Shift. Select this checkbox to allow events that start exactly on the half hour, such as 1:30, to use hourly blocks that begin and end on the half hour, rather than the hour, as is normally used for all programs.

   • Enable Compensation Adjustment. Select this checkbox to enable custom settlement calculations to be applied to events. This setting only appears in the Settlement tab when the "Enable Advanced Compensation Features" system setting is true.

   • Enable Two Tier Pricing. Select this checkbox to enable custom settlement calculations to be applied to events. Two-tier pricing allows one standard price to be applied for compliance with reduction commitments and another price to be applied to reductions in excess of the commitment. This setting only appears in the Settlement tab when the "Enable advanced compensation features" system setting is true.

2. Continue to Create a program: Event defaults tab.