Difference between revisions of "GCDAMP- GTMAX"
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{|width="100%" cellpadding="2" cellspacing="5" style="vertical-align:top; background:#f5faff;" | {|width="100%" cellpadding="2" cellspacing="5" style="vertical-align:top; background:#f5faff;" | ||
− | ! <h2 style="margin:0; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #a3bfb1; text-align:left; color:#000; padding:0.2em 0.4em;">''' | + | ! <h2 style="margin:0; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #a3bfb1; text-align:left; color:#000; padding:0.2em 0.4em;">'''Purpose of GTMax Related to GCDAMP'''</h2> |
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#Tool used to assist Western in making its operation of the CRSP powerplants more efficient | #Tool used to assist Western in making its operation of the CRSP powerplants more efficient | ||
#To estimate the electrical power production impacts of different operational regimes. | #To estimate the electrical power production impacts of different operational regimes. | ||
+ | #GTMax-Lite (and GTMax) has been used successfully to model operations at Glen Canyon Dam and other Salt Lake City Area Integrated Project dams for many years. (SDM workshop-2013) | ||
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*[https://ceeesa.es.anl.gov/projects/Gtmax.html GTMax site at Argonne] | *[https://ceeesa.es.anl.gov/projects/Gtmax.html GTMax site at Argonne] | ||
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+ | *[[Media:GTMax Rpt Final.pdf |GT Max Final Products of 2011 Hydropower KA and GT Max Model review workshop]] | ||
+ | *[https://www.usbr.gov/uc/progact/amp/amwg/2010-08-24-amwg-meeting/Attach_02a.pdf AMWG presentation: Socioeconomic Workshop and Panel Report] | ||
+ | *[https://www.usbr.gov/uc/progact/amp/twg/2010-11-15-twg-meeting/Attach_08a.pdf Final Report of the GCMRC Socioeconomic Research Review Panel] | ||
+ | *[https://www.usbr.gov/uc/progact/amp/pdfs/GTMaxModel/GTMax-Final-Rpt-main.pdf FINAL REPORT OF THE GTMAX MODEL REVIEW PANEL] | ||
+ | *[https://www.usbr.gov/uc/progact/amp/pdfs/GTMaxModel/Workshop-Particip-Resp.pdf Workshop participants' responses to the final report ] | ||
+ | *[https://www.usbr.gov/uc/progact/amp/pdfs/GTMaxModel/Expert-Panelists-Resp.pdf Panel's responses to workshop participants responses ] | ||
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− | ! <h2 style="margin:0; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #a3b0bf; text-align:left; color:#000; padding:0.2em 0.4em;"> | + | ! <h2 style="margin:0; background:#cedff2; font-size:120%; font-weight:bold; border:1px solid #a3b0bf; text-align:left; color:#000; padding:0.2em 0.4em;">Revenue Versus Cost</h2> |
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+ | In addition to numerous references to maximizing revenues and improving profits, the author(s) state | ||
+ | that “minimizing costs may not be the most important objective”, and proceed to suggest that | ||
+ | maximizing revenues would constitute a mathematically equivalent approach. | ||
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+ | From a WAPA customer perspective, we believe that there is a significant policy-level difference | ||
+ | between a statutory obligation that requires WAPA to market federal project hydropower at the lowest | ||
+ | possible rates to consumers consistent with sound business practices, and a revenue maximization goal. | ||
+ | On one hand, the author(s) correctly observe that the objective function of the GT Max model is to | ||
+ | minimize cost. In this regard, we believe that WAPA and Argonne have correctly oriented the tool so as | ||
+ | to be reflective of WAPA’s legal obligation. | ||
+ | |||
+ | On the other hand, the author(s) describe the business area where 100% of WAPA’s customers reside | ||
+ | as “the regulated IOU business model”, which suggests to us that the author(s) may not understand | ||
+ | the public power characteristics of WAPA’s customers. | ||
+ | |||
+ | The foregoing observations notwithstanding, the real damage in the revenue versus cost discussion is | ||
+ | the promulgation of the misleading suggestion that utility business entities (WAPA, WAPA’s customers, | ||
+ | other public power entities, IOUs, etc.) are exclusively focused on maximizing profits. This is | ||
+ | particularly harmful in the AMP arena, where the majority of participants are not utility business | ||
+ | professionals, and a perception that “profits trump natural resources” could be reinforced. | ||
+ | As in items 3-4 above, the promotion of false perceptions such as this serves only to establish or | ||
+ | strengthen barriers among AMP stakeholders who might otherwise be able to collaborate more | ||
+ | effectively. [https://www.usbr.gov/uc/progact/amp/pdfs/GTMaxModel/Workshop-Particip-Resp.pdf] | ||
Latest revision as of 10:42, 15 April 2024
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