Operating Reserves
Operating Reserves
Money that an organization appropriates in case budgeted operating expenses are insufficient to cover actual expenses. Operating reserves are used for fiscal conservatism.
References in periodicals archive
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Meanwhile, a red alert is raised on grids when there are zero operating reserves, which could lead to consumers to experience rotational brownouts.
A yellow alert is issued when operating reserves have dropped below the required 647-megawatt contingency in Luzon, or equivalent to the largest unit in Luzon, which is the 647-MW coal-fired power plant in Sual, Pangasinan.
The NGCP said the alerts were raised because of insufficient operating reserves due to the forced outage of multiple power plants.
A "yellow alert" is issued by the National Grid Corporation of the Philippines when operating reserves have dropped below the required contingency level, often equivalent to the capacity of the largest running generating unit in the grid, or the 647-megawatt coal-fired power plant in Sual, Pangasinan, in the case of Luzon.
The system operator said there was still "insufficient operating reserves brought about by high system demand and forced outages" of some plants.
Cash balances at June 30, 2018 in the combined operating reserves totaled $15.3 million, equal to 24% of general fund and supplemental general fund expenditures.
Ready Capital closed an $8.2 million, nonrecourse, interest only, floating rate loan that features a 36-month term, with two 12-month extension options, flexible pre-payment, and is inclusive of a facility to provide future funding for capital expenditures, working capital, leasing costs, and interest and operating reserves.
It predicted as much in March, when it warned that delayed power supply projects and the closure of three major coal-fired power plants would contribute to "tight operating reserves" and sky-high power prices at times.
UA System President Don Bobbitt said the decline of UAMS' operating reserves caught the trustees' attention in the fall.
Concerns have been raised over Taiwan will have an adequate supply of electricity this summer as global warming pushes temperatures higher after operating reserves fell at one point last summer to below 2 percent of capacity.
Diamond Resorts also plans to make other improvements at the resorts over time, while establishing adequate operating reserves in the resort budgets.
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