4 ms·
$9k is fairly artificial in that it comes from the $9k ERCOT ORDC (operations reserves demand curve) meaning they did a study awhile back looking at Texas GDP a
by 6thaccount2 7y ago
$9k is fairly artificial in that it comes from the $9k ERCOT ORDC (operations reserves demand curve) meaning they did a study awhile back looking at Texas GDP and the cost of lost load and judge it to be ~$9k per MWh. This means when the optimization software has a shortage of their operating reserves the prices jump up to that level.