Common use of Baseline Adjustment Clause in Contracts

Baseline Adjustment. Events are often called during extreme weather (very hot). The day of the event may be hotter than the last 10 similar days, and the Asset’s load may be higher that day. To account for this, the baseline is adjusted to reflect Asset load during the event day. This is called the baseline adjustment. The baseline adjustment is the difference between the Asset’s average load during the hour starting the 2 hours before the event start and the load during the event day. However, the Asset’s load may be lower during an event day than the last 10 similar days because the Asset is responding to the event. Therefore, the adjustment can only be positive. It will never penalize the Asset. Time Interval Asset’s Baseline Event Day Load Baseline Adjustment Noon – 1pm 500kW 600kW 100kW There is no baseline adjustment for batteries. Example of a same day baseline adjustment. Another example of a same day baseline adjustment. Time Interval Asset’s Baseline Event Day Load Baseline Adjustment Noon – 1pm 500kW 400kW 0 kW (not negative)