[OASIS Issue Tracker] Commented: (EMIX-118) Line 389: Reserves areoptions

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    [ http://tools.oasis-open.org/issues/browse/EMIX-118?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=23190#action_23190 ] 

Edward Cazalet  commented on EMIX-118:
--------------------------------------

Pehaps there may be some additional work to more carefully model Ancillary Services as options.  However, an option to buy energy at a strike price not fixed, but computed or tied to a markter price such as the ISO Real Time market is still a valid option.  We will need to make this markte based stridke price clear in the spec.  It is not clear now.

The ISO pays a reservation, option premium, or Ancillary Services capacity price expressed in $/MW for each hour that reource is made available to the ISO for a particular Ancillary Service.  The ISO pays this option price regardless of whether  the resource is called on to produce any energy. Then if called, the ISO pays the real-time price in $/MWh for any energy delivered.

WIll this work for the IRC? 

> Line 389: Reserves are options
> ------------------------------
>
>                 Key: EMIX-118
>                 URL: http://tools.oasis-open.org/issues/browse/EMIX-118
>             Project: OASIS Energy Market Information Exchange (eMIX) TC
>          Issue Type: Bug
>          Components: spec
>    Affects Versions: wd14
>            Reporter: Sean Crimmins 
>            Assignee: William Cox
>
> Line 389: Reserves are options
> Ancillary Services are not the same as options.  They do not secure a product at a certain price.  They secure capacity for a price, any energy produced from that capacity is paid at RT prices independent of the A/S award price.

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