Applying Losses

Markets typically operate using generation-level determinants, meaning that the individual metered entity data must be adjusted for system losses in order to compare the market participant load to the system load, market participant schedules, etc. Loss calculations can vary from simple to complex, ranging from an annual percentage by rate class or voltage level, to seasonal or time of use loss factors, to hourly dynamic loss factor calculations based on system conditions. Loss factors can be applied at the metered level or any aggregation level, as needed. In addition, losses can be applied to generators in markets where generation losses are calculated and used.

Applying losses to aggregated data is performed via value derivation algorithms. These are algorithms which apply a configured formula to aggregated measurement values. For instance, to apply a loss factor, an algorithm can retrieve effective-dated factor values for a loss factor and multiply each aggregated measurement value by the appropriate factor value. Value derivation algorithms can retrieve values from all types of factors, including multi-variable factors defined for settlement units. See Aggregation Calculation — Other Calculations for more information about how losses can be applied during data aggregation.