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EnCompass can determine the best way to utilize resources, including which technologies to add in the future or existing resources that should be converted or retired.

Capital Project inputs specify the operating life and constraints for adding new resources, capital expenditures, and project financing parameters. The finance parameter includes assumptions on debt, taxes, return on equity, property taxes, insurance, and unregulated versus rate base financing. Each balancing authority modeled may have a reserve margin requirement set that is satisfied based on the firm capacity of existing resources and new capital projects.

In addition to direct transmission constraints, each zone may have net capacity import and/or export limits set. Those limits could potentially force capacity to shift into transmission-constrained regions, similar to the New York ISO Local Capacity Requirement (LCR) and the PJM Locational Deliverability Area (LDA).

The selection of new capital projects and existing resource retirements is optimized using Mixed Integer Programming. The optimization may span multiple years or be broken up into yearly overlapping segments. For producing faster results on larger problems, EnCompass offers the option of partial project additions, which can be rounded up for new capacity or down for retirements. Multiple least-cost plans, each one unique up to a specified year within the simulation period, may be generated, ranked, and selected for further analysis.

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