What are the options for shedding an obligation won in the FCA? How will settlements reflect the shedding of an obligation under these options?
A Capacity Supply Obligation that is obtained through an FCA (except for an obligation associated with self-supply) can be shed through the following mechanisms: Annual Reconfiguration Auctions – the Capacity Supply Obligation (“CSO”) can be shed through a demand bid in the annual reconfiguration auctions conducted prior to the Commitment Period. Shedding a CSO in an annual reconfiguration auction will result in the obligation being shed for the entire Commitment Period associated with the auction. If the annual reconfiguration auction is not held (no supply offers) or it does not clear (the demand and supply curves do not intersect), the obligation will not be shed. It is important to note that: i) CSOs associated with a resource or a portion of a resource designated as self-supply and CSOs associated with Real-Time Emergency Generation Resources can not be shed through an annual reconfiguration auction. Seasonal Reconfiguration Auctions – the CSO can be shed through a demand bid in e
A Capacity Supply Obligation that is obtained through an FCA (except for an obligation associated with self-supply) can be shed through the following mechanisms: Annual Reconfiguration Auctions – the Capacity Supply Obligation (“CSO”) can be shed through a demand bid in the annual reconfiguration auctions conducted prior to the Commitment Period. Shedding a CSO in an annual reconfiguration auction will result in the obligation being shed for the entire Commitment Period associated with the auction. If the annual reconfiguration auction is not held (no supply offers) or it does not clear (the demand and supply curves do not intersect), the obligation will not be shed. It is important to note that: i) CSOs associated with a resource or a portion of a resource designated as self-supply and CSOs associated with Real-Time Emergency Generation Resources can not be shed through an annual reconfiguration auction. Monthly Reconfiguration Auctions – the CSO can be shed through a demand bid in an
Related Questions
- What are the options for shedding an obligation won in the FCA? How will settlements reflect the shedding of an obligation under these options?
- Is there a fiduciary obligation for professional advisors to discuss life settlements with their senior clients?
- Given that options sellers take on an obligation, why would anyone sell them?
