MCG Energy

Shadow Settlement Functionality

MCG Energy’s Shadow Settlement software, a powerful feature within our comprehensive Integrated Asset Management (IAM) solution, empowers you to streamline your power settlement process and identify potential cost savings.

Discover How Shadow Settlement Software Can Help

MCG Energy’s IAM Shadow Settlement Key Features

Utilizes Market Rules

and calculations to create the shadow from the data inside the system and compares it to data from the ISO settlement. IAM uses color formatting and “problem only” functionality to efficiently identify differences between the two independent sources of data.

Allows Comparison

of Shadow Data to ISO data for a given operating date, it also compares ISO settlement revisions. This function quickly identifies differences from one settlement to another all the way down to the market determinant level. The visibility of settlement revision differences allows an organization to plan for material affects to cash flow as well as explain differences to management.

Learn About MCG’s IAM Software

MCG Energy’s IAM Shadow Process Key Elements

Estimation

Allows an organization to perform pre-settlement reporting. Based on market rules, estimated determinant charges and calculations are configured in the system. When pre-settlements are run, IAM provides visible estimated financial results before ISO settlements have been published for that operating day.

Reporting

Reporting occurs at all stages of estimation, reconciliation, and allocation. Some reports are specific to a stage, others can be run at any point in the shadow process. Types of reports include financial as well as operational.

Allocation

Not all charges can be directly attributed to a specific operational or transactional event, making allocation necessary in managing ISO settlement. Charges such as revenue neutrality uplift need to be allocated to align with an organization’s needs and business plans. Successful completion of allocation allows an organization to analyze market trends and to report on market costs in a consistent manner.

Reconciliation

Occurs when the ISO publishes its settlements. Estimated market-wide determinants such as operating reserve rates, revenue sufficiency rates, and admin fees are replaced with the actual fees published by the ISO. Then a shadow settlement is created from IAM data and compared to the ISO settlement. Discrepancies can be investigated, and when necessary, disputes filed with the ISO. IAM provides the capability to create notes as well as file and manage disputes directly from the settlement comparison screen. Settlements can be marked “checked out” upon a satisfactory evaluation.

Gain Control Over Your Power Settlements

MCG Energy’s Shadow Settlement Software empowers you to streamline the reconciliation process, identify discrepancies in power settlements, and discover potential cost savings across all North American markets.

Schedule a free demo today to see how our software can optimize your power settlement process.

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