Integrated Supply and Demand Coverage

Many customers have taken advantage of our "dual trigger" coverage with protection custom tailored for unplanned outage events (“Trigger 1”) when market prices are high (“Trigger 2”). The optimal program design for a company that owns a system of units is usually for the customer to maintain surplus supply, i.e., reserve margins, interruptible contracts and other contingency methods for more likely events. When forced outages exceed the reserve margin (“Capacity Deductible” in the Policy and “Trigger 1”), PowerBacker^SM pays incremental costs above a pre-determined price and any dollar retention by the company (“Trigger 2”). These coverages focus on the supply side of the company’s needs, and can be enhanced by taking into consideration changes in load obligations based on ambient conditions.

ACE Power Products offers triple-trigger PowerBacker programs that include a daily maximum temperature as a third trigger. These programs take into consideration the customer's need during “expected” summer ambient conditions as well as offer additional coverage during extreme heat. Customers analyze their load by month and temperature and estimate their surplus supply under various temperature conditions.

For one customer, ACE responded with a program which varied coverage from an over 40 percent concurrent forced outage threshold, when temperatures are cool and the client could absorb forced outages without threatening their ability to meet native load and firm commitments, to less than a 2 percent concurrent forced outage threshold when temperatures were extremely high.

To learn more about these customized solutions call us directly at 1 800 356 2827 or call your insurance broker.