What Affects Fuel Price Formation?

Fuel prices delivered with the database are entered in real base year currency (default: $/mmbtu). Several inputs will affect the final reported price for a given fuel. These include the Price, Escalation, Monthly Shape Vector, and Reference Fuel columns in the Fuel table, as well as Daily Change adjustments, risk draws, and inflation.

Here is the order in which these will be applied, when applicable:

First the input Price will be converted to nominal dollars via the Inflation Vector.
Then the Escalation factor and Monthly Shape Vector will be applied as multipliers.
After which any Daily Change adjustments will be made.
Risk draws will be applied after any daily change adjustment.
The nominal price of the Reference Fuel (if applicable) is added last.

FAQs

Fuel Price Formation

For further assistance, please contact Aurora Support.