Addressing FERC GIGA-NOPR with EnWorkz PowerUpTM Framework

EnWorkz released PowerUp Framework to help energy companies address new market proposed by FERC. EnWorkz PowerUp is the analytical framework for EnWorkz 1.0 Software Suite. The EnWorkz PowerUpTM Framework provides a unified, portfolio-level solution for the management of electric power generation, delivery, and hedging.

FERCs Notice On Proposed Rulemaking (GIGA-NOPR) is drawing national attentions on how it would fundamentally change the rules of the game for the power industry in US.

Giga-NOPR proposed major steps in restructuring the market, including forming Independent Transmission Provider (ITP) as independent operators of transmission grids, eliminating pancake rates of selling electricity across differing states, establishing day-ahead and real-time markets in an effort to increase liquidity, improving congestion management through elimination of physical rights and implementing financial rights over transmission paths, and mitigation of Local Market Power through Bid Caps and Must Serve requirements.

The back to basic" market rules for the wholesale market will encourage the power merchants and utilities to abandon the asset-light approach made popular by Enron, and instead focusing on improving operational efficiency and optimizing portfolio management. EnWorkz PowerUp is designed specifically to address that problem space.

While other risk management systems attempt to model energy portfolios using generic Wall Street financial models, EnWorkz PowerUp is based on detailed physical asset models that capture the complex payoff functions and subtle embedded optionalities of assets like generators and loads. By combining these physical models with a state-of-the-art resource allocation optimizer, PowerUp can accurately solve complex portfolio optimization and risk management problems that involve multiple asset classes, multiple scenarios, operating flexibility, and difficult coordination constraints. The benefits for an energy company include more predictable earnings, improved efficiency, and more transparent risk management at the corporate level.