Variable Compound Type

Units:	-
Default Value:	0
Validation Rule:	In (0,1)
Description:	Type of compound escalator (nominal or annual equivalent rate)

The available values are:

Nominal (value = 0)

The rate of escalation is increased by the defined value at every period type. For example an escalator with a Compound Index Day of 1% will increment its base value by an additional 1% every day.

Annual (value = 1)

The rate of escalation is increased by a pre-calculated value at every period type up to the defined rate. For example an escalator with a Compound Index Month of 12% will increment its base value by 1% every month in order to obtain the 12% target.

The following shows a basic example of an escalator called "CPI" and its application to a fuel price. The example shows how a 2% annual escalation in fuel prices would be modelled. Note that in PLEXOS you may create as many escalators as you need and apply them to any input data.

Escalator	Property	Value	Units	Date From
CPI^	Compound Index Year	2	%	1/01/2010

^ The Compound Type is Nominal

This type of Escalator information can also be entered using the similar Escalator Index method, as shown in the example below. However when the same value is repeated a number of times it is far easier to use the "Compound" properties.

An example of the above data defined using Escalator Index:

Escalator	Property	Value	Units	Date From
CPI	Index	1	-	1/01/2010
CPI	Index	1.02	-	1/01/2011
CPI	Index	1.04	-	1/01/2012
CPI	Index	1.06	-	1/01/2013
...	...	...	...	...
...	...	...	...	...
CPI	Index	1.2	-	1/01/2020