Competition Contracts Optimize Offers

Units:	Yes/No
Default Value:	False (0)
Validation Rule:	False (0) or True (-1)
Description:	If contract position should be considered when offering generation.
Detail:

Competition Contracts Optimize Offers controls how financial contracts affect generator bidding behavior. It can take the following values:

Calculate Settlement Only (value = 0)

The settlements are computed and the results passed back to company results, but the level of contract cover itself does not affect generator bids, but in the cost recovery algorithms the contract settlement will change company net profit, thus some impact will be observed on generator offers in those cases.

Calculate Settlement and Modify Offers (value = -1)

The settlements are computed, and in addition the contracts are monitored to check for cases where generators are paying out on those contracts. When this condition is detected, additional constraints are added to the simulation that ensure that the company generates to meet the contract level if it is economic to do so. This has the effect of pulling the pool price back towards the contract price.