Project Description
Issue
An institution that operates one of the largest thermal energy systems in the world was installing an additional generating plant for added reliability and overall cost savings. The new construction added 50 MW of generation and eight million gallons of chilled water storage. They needed assistance syncing to the Independent System Operator, optimizing the pricing and minimizing the attendant risks.
Solution
DaCott managed the required registration of the new generating plant with the local utility and the governing Independent System Operator. DaCott prepared a comprehensive hedging strategy for the facility once the new generating plant and chilled water storage were in operations. The main focus of the hedging strategy was maintaining reliability of the facility which supplies steam and chilled water to the member institutions while providing secure pricing. The hedging strategy incorporated the utilization of the new generating plant, natural gas supplies and chilled water storage.
