; F8 Hardened Transfer Limits
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F8 Hardened Transfer Limits


  • pg 1
									F8 Hardened Transfer Limits
      Transfer Limit Differences
• Large difference in transfer limit size between F8S1 and
  F8S5/S6 is likely due to mismatch between overload
  charge levels and shadow prices
   – Overload charges for S1/S5/S6 based on F8B shadow prices
       • Those shadow prices include high post-2030 carbon prices thus
         creating higher post-2030 overload charges
   – However, S5/S6 have flat post-2030 carbon prices
       • Those flat carbon prices create lower level of shadow prices post-
         2030 than seen in F8B
   – Forward looking model presumably compares overload charges
     it will have to pay to transmit energy post 2030 with its expected
     post 2030 shadow prices and decides to build less in energy
     exporting regions
   – If we had been able to use properly calibrated overload charges,
     build in S5/S6 would likely have been higher

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