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Verifiable Cost Escalation Cost Factors ERCOT WMS 11/13/2013

Verifiable Cost Escalation Cost Factors ERCOT WMS 11/13/2013. Update on Verifiable Cost Escalation Cost Factors .

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Verifiable Cost Escalation Cost Factors ERCOT WMS 11/13/2013

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  1. Verifiable Cost Escalation Cost Factors ERCOT WMS 11/13/2013

  2. Update on Verifiable Cost Escalation Cost Factors • QSEs and Resource Entities which submit verifiable O&M cost data are allowed to “present value” historical O&M Costs. The cost indices are derived from the July update of the Handy-Whitman Index. • ERCOT utilizes Table E-4, “Cost Trends of Electric Utility Construction,” line 6, “Total Steam Production Plant” and line 28, “Total Other Production Plant” for the South Central Region. • The escalation rate is calculated by dividing the Handy-Whitman cost value in the base year by the Handy-Whitman cost value in each preceding year. The two indices for the year are averaged to obtain the final escalation rate used in the Verifiable Cost Analysis. • The Escalation Cost Factors are updated in July and the new factors will be effective on December 1 of each year.

  3. Update on Verifiable Cost Escalation Cost Factors Effective December 1, 2013 http://www.ercot.com/mktinfo/settlements/

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