FEP utilizes the AURORAxmp model, licensed from EPIS, LLC, scrubbed and updated with our own market insights.
FEP’s Capacity Compensation Model
After accounting for the unit-specific energy revenues projected by FEP’s fundamental model, FEP calculates the additional compensation required by the marginal unit to break even.
This additional compensation includes compensation that may be earned through:
- Regional capacity markets
- Ancillary services markets
- Scarcity pricing
- Bilateral contracts
The available sources of compensation vary by region and market.