PCI Introduces Enhanced Real-Time Pricing Application in its Generation Supply Management System (GSMS)
April 2, 2014 – Norman, OK – PCI’s multi-dimensional Generation Supply Management System (GSMS) has now been enhanced by the addition of a greatly improved real-time pricing solution that allows traders to obtain far quicker and more consistent pricing signals.
The concept of pricing potential purchases and sales is simple in theory, yet quite complex in practice. Traditionally, trading organizations have approached the problem by simulating system costs before and after each deal, which can present challenges in the form of potentially long run times, as well as inconsistent comparison results that can surface when re-optimizing commitment and dispatch.
PCI’s solution incorporates a new pricing algorithm that is extremely fast (about 1-second for each execution) and, when combined with simple business rules as well as a robust dispatch engine, it ensures far more dependable results than any other real-time pricing calculation methods. The application is integrated into a cohesive system solution that provides automated inputs and subsequent logging of each analysis for auditing purposes. By linking each trade to an associated pricing run, there is a comprehensive record of why and under what assumptions each trading decision was made.
To further speed the pricing workflow, PCI provides numerous dashboards, screens and reports to manage various aspects of real-time price study and the viewing of results including:
- Real-Time (Block Pricing) Execution for inputting/importing data, running block pricing studies and viewing reports
- Resource Plan Management to review the contents of each resource plan and then approve them, as appropriate.
- Real-Time Intraday Pricing to review executed trades, their profit/loss and their associated components (hourly megawatt contribution per unit, hourly cost per unit and hourly fuel consumption volume per contract) as well as calculated contribution values based on actual generation. The dashboard displays up to 24-hours in a window and up to the current real-time hour.
- Real-Time Pricing Dashboard to create and maintain proposed trades and then execute and review those trades. In addition, the dashboard allows users to monitor the resource plan date that provides a real-time pricing starting point.
- Real-Time Pricing Audit Dashboard displays calculated contribution values based on approved resource plans. The screen provides a rolling 48-hour window for which users can review trades, their profit and loss, and the components of these trades (hourly megawatt contribution per unit, hourly cost per unit, and hourly fuel consumption volume per contract).
Power Costs, Inc. (PCI) is the leading provider of generation supply management and optimization software to energy focused companies. Founded in 1992 by Dr. Fred Lee, PCI continues to develop power industry software solutions, superior customer support and value-added services for top-tier energy customers. More than half of all power generation in the United States use PCI software solutions. PCI is a privately held company based in Norman, Oklahoma with offices in Houston, TX and Raleigh, NC. To learn more about PCI, please visit Powercosts.com.