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Final Opinion on Congestion Revenue Rights

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Summary:

Opinion on Recent Changes to the ISO Congestion Revenue Rights Proposal. Presented at the Market Surveillance Committee Meeting on April 12, 2007. We comment on the changes made to the ISO’s proposal for the allocation of Congestion Revenue Rights (CRRs). At the time this opinion was written, a full proposal from the ISO was not available, so we describe features of a proposal we would prefer to see, rather than on the specific ISO proposal. We make three points, each coinciding with an aspect of the evolving ISO proposal. First, we do not believe that an allocation based on grid usage during the historic year 2006 that also accommodates contracts signed during 2006 for delivery in future years raises concerns about the CRR allocation process degrading market efficiency or system reliability.

Document Locations:

• MSC Meeting 12-Apr-2007