Issue
The client is a power generator that had recently moved into MISO South after participating in Entergy pre-merger.
Since joining MISO South, Unit Commitment and Economic Dispatch were producing less-than-optimal results:
- Operating parameters, start-up and no-load costs, and heat-rate settings had not been re-tuned for the new market.
- Sub-optimal offers cost the client margin and unnecessary ancillary penalties.
- The market transition had quietly degraded operational and market performance.
Solution
Our consultant combined organized-market expertise with hands-on operational tuning:
- Corrected mis-aligned operating parameters and adjusted inaccurate start-up and no-load costs.
- Identified and reduced unnecessary ancillary and 'mileage' penalties through process changes and training.
- Optimized incremental heat-rate adjustment and temperature compensation.
Result
Total production cost offered to the ISO improved 19.1%, adding an estimated $3.2-6 million in annual EBITDA.
After a suboptimal MISO South transition, the client won more profitable commitments against similar competing resources during tight-margin periods.
Key Takeaways
- A market transition silently mis-tunes your units. Correcting operating parameters, start-up and no-load costs, and heat-rate settings after joining MISO South improved the production cost offered to the ISO by 19.1% and added an estimated $3.2-6 million in annual EBITDA.
- After entering a new ISO/RTO, revisit the parameters - do not assume they carried over. Disciplined cost-and-parameter tuning is a repeatable source of margin for any generator that has changed markets.
Ready to do the same?
Recently joined a new ISO/RTO and suspect you are leaving margin on the table? MidDel tunes the operating parameters that drive commitment and dispatch economics. Let's talk.
For more case studies highlighting our work, please go to: Current Case Studies
