Must Take Market or Floor
This type of contract represents an amount of energy to be delivered at a market price or a floor price, plus any additional input energy cost. For example, it can be used to sell energy at market or floor price (whichever is higher) by entering the amount of energy (e.g., ownership share, as the product of Energy Max and Shape column values) as a negative value. In the case of a sell (negative energy), the specified floor says that the seller of this energy will never get less than the specified floor. The floor price is specified by the fuel pricing. Fuel pricing is determined by: [Fuel Factor] * [Pricing Fuel] (referenced by a Fuel ID). Variable O&M (or other variable costs, as in currency/MWh) may be included in the fuel price via the Energy Cost column, and will be added after the determination of whether the market price or floor price is applied. The amount of must take energy can be shaped using the Shape column.
NOTE: Generally, this contract type is not appropriate to model a purchase (positive energy). If this is desired, please use Must Take Market Price contract type. However, if contract includes some hours of purchase (with no floor) and some of sale (with floor), then it is appropriate and hours with purchases will use market price.
The market price that is used in calculating the costs for this contract will be determined according to the following precedence: Pricing Hub 2 will be used if specified, else then Pricing Hub will be used if specified, else then Pricing Area will be used if specified, else then pricing of area where portfolio is located.
The amount of energy (or portion of the output sold/purchased) associated with this contract is usually referred to as the ownership share. The ownership share can be specified by using the Energy Max set to the fraction ownership share desired, which is then multiplied by value in the Shape column.
Market price for this contract may be based on the price in the area where the portfolio is located by default, a specified area by placing a master area number in the Pricing Area column, a specified hub or two hubs by placing hub numbers in the Pricing Hub and Pricing Hub 2 columns.
The cost of the energy is then calculated as follows: for each hour, the model first determines if the energy is negative (a sale) or positive (a purchase). If negative, the model then takes the maximum of either the market price or the floor price ([Fuel Factor] * [Fuel Price]) and adds any additional energy cost ([Energy Cost] * [Cost Shape]). If positive, the model simply takes the market price and adds any additional energy cost. Finally, it multiplies all of that by the amount of energy to obtain the total cost of the contract for that hour.
See the README worksheet of the Portfolio Excel Workbook called Must Take Contracts Example located here: AURORA - Portfolio Workbooks (site.com)
The Must Take Contracts Example workbook can also be found by navigating www.energyexemplar.com/client-login. Click on Customer Login at the top of the website and enter login credentials. After logging in, select Online Support > Tools and Examples and select the Must Take Contracts Example from the Portfolio Excel Workbooks list.
NOTE: The market price may not be determined by an input fuel type.
NOTE: Users can specify an annual limit in MWh in the optional Energy Amount Max field of the Portfolio Contract table.
NOTE: Users can specify a monthly limit in hours in the optional Monthly Max field of the Portfolio Contract table. The value is multiplied by Energy Max to yield a MWh monthly limit.
Must Take Market or Floor
