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What is the nature of the recallable energy product and how will curtailment determination be made?

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What is the nature of the recallable energy product and how will curtailment determination be made?

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A. Recallable energy is more firm than non-firm energy, but not as firm as firm-LD energy. The Southern Company operating companies have the right, but not the obligation, to curtail recallable energy in the event that it experiences a supply-side disruption of resources that were considered to be available when the calculation of available capacity was made. Once such a disruption occurs, Southern Company Services will evaluate whether the continuation of the recallable energy transactions will either jeopardize the reliable operation of the system or otherwise harm the operating companies’ native load customers. If so, a curtailment will be issued. However, the buyer of the recallable energy product will have the right to “buy through” the curtailment at the hour-ahead auction price if, in the judgment of Southern Company’s fleet operators, doing so will not jeopardize the reliable operation of the system.

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A. Recallable energy is more firm than non-firm energy, but not as firm as firm-LD energy. For Southern Company, recallable energy carries the right, but not the obligation, to be curtailed in the event that Southern Company experiences certain qualifying supply disruptions. Specifically, the disruption (i.e., the loss or duration) of resources that were considered to be available when the calculation of available capacity was made. Once such a disruption occurs, SCS will evaluate whether the continuation of the recallable energy transactions will either jeopardize the reliable operation of the system or otherwise harm the operating companies’ native load customers. If so, a curtailment will be issued.

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