Generator FO&M Charge

Units:	$/kW/yr
Mode:	Input Only
Multi-band:	False
Default Value:	0
Validation Rule:	Any Value
Key Property:	No
Description:	Annual fixed operation and maintenance charge
Detail:

Generator FO&M Charge is the fixed operations and maintenance charge for each installed unit, and forms part of the annual fixed cost charge along with Debt Charge and Equity Charge. The charge is defined on a per kilowatt-year basis, thus the total FO&M Cost for a unit in a year is defined as:

FO&M Cost = Installed Capacity (MW) x FO&M Charge ($/kW) x 1000 (kW/MW)

The tax rate is taken into account if Depreciation Method is set so that:

FO&M Charge (modeled) = FO&M Charge x (1 - Tax Rate)

This charge is combined with the Build Cost in the objective function of LT Plan. The cost is also relevant for retirement candidates (as an avoidable cost).

Table 1: FO&M Charge Example

Property	Value	Units
Units	1	-
Max Capacity	250	MW
F&OM Charge	15	$/kW/year
Rating	250	MW

Fixed costs are only counted against a generator's Installed Capacity i.e. generators with zero Units or zero Units Built do not incur fixed costs. The total fixed operations and maintenance cost incurred is reported in the FO&M Cost property.

The dynamic bidding of generators to recover these fixed costs can be modeled in MT Schedule and ST Schedule according to the Competition Equilibrium Model setting.