Opportunity Cost Calculator
In Markets Gateway there is a calculator tab that can be used to estimate two types of opportunity costs: Energy Market Opportunity Cost (EMOC) and Non-Regulatory Opportunity Cost (NROC). A generating unit may be eligible to add opportunity cost to the cost-based incremental energy offer if it falls into one of three categories:
- The unit has an externally imposed environmental limit on run hours within a certain compliance period (EMOC)
- The unit has a force majeure fuel limitation and is limited in run hours for a particular definable period (NROC)
- The unit has a physical equipment limitation on run hours due to Original Equipment Manufacturing (OEM) recommendations or insurance carrier restrictions (NROC)
Further information regarding unit eligibility for EMOC or NROC can be found in the Open Access Transmission Tariff PDF and Manual 15: Cost Development Guidelines.
Using the calculator does NOT affect unit offers into PJM in any way; the results can be reviewed by unit owners for estimation and (if they meet all criteria) in the incremental energy offer.
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