DAT 00003
Published On: 03/16/2017
Question: How will the PIPP Mwh settlement amounts be calculated in relation to the 'PIPP (kWh) Actual (at the meter)' amount shown in the historical data on the website?
Answer: The settlement amounts will be calculated consistent with the terms of the controlling Master Supply Agreement (Agreement). Pursuant to Section 6.1(a) of the Agreement, Duke Energy Ohio is required to provide an invoice “which will show (i) amounts due to the PIPP Supplier equal to the Price multiplied by the applicable Seasonal Billing Factor multiplied by the Estimated Monthly Energy Share, (ii) the Energy Share Adjustment from such Billing Period, if any, and (iii) all Charges due to Duke Energy Ohio incurred during the Billing Period.” Estimated Monthly Energy Share, Final Monthly Energy Share and Energy Share Adjustment are defined as follows:
“Estimated Monthly Energy Share” means a quantity of Energy expressed in MWh which, for any Billing Period, is the preliminary calculation of the PIPP Supplier’s PIPP Supplier Responsibility Share.
“Final Monthly Energy Share” means a quantity of Energy expressed in MWh which, for any Billing Period, is the Estimated Monthly Energy Share adjusted for any billing or metering errors found subsequent to the calculation of the Estimated Monthly Energy Share of which PJM is notified prior to the last date on which PJM issues a settlement statement for a previous operating day for the Billing Period.
“Energy Share Adjustment” means for any Billing Period, the monetary amount due to the PIPP Supplier or Duke Energy Ohio, as the case may be, in order to reconcile any difference between the Estimated Monthly Energy Share used for the purpose of calculating estimated payments made to the PIPP Supplier for a given month and the Final Monthly Energy Share used for calculating the final payments due to the PIPP Supplier for such month, as more fully described in Article 6.
The Agreement does not specify the manner in which the foregoing amounts shall be calculated. Consequently, and as accepted in prior transactions, Duke Energy Ohio has been using reasonable calculations based on available information to determine the Estimated Monthly Energy Share and Energy Share Adjustment set forth in Duke Energy Ohio’s invoices. Such calculations are permissible under the Agreement and will incorporate meter volumes; however, Duke Energy Ohio reserves the right to employ equally reasonable, but alternate, methodology based upon system refinements.