2.0 METHODOLOGY
p. pp. 7-9
2.0 METHODOLOGY The SRMC test involves the following steps: 1. Determine the average annual system marginal cost (over 8760 hours in 2025) at the transmission delivery level. In calculating this marginal cost, the effects of exports and lo...
AI summary The SRMC test methodology calculates system marginal costs, adjusts for distribution losses, compares unit revenues to marginal costs, and estimates inefficient usage via price elasticities. NS Power uses a long-term elasticity factor of -0.15 for certain rate classes, while others rely on California Energy Commission data. The 2026 Load Forecast Report (M12861) is referenced for elasticity inputs.