5 Congestion Revenue Rights
Congestion revenue rights auction efficiency 1B became in effect on January 1, 2019. It includes key changes related to the congestion revenue rights settlements process:
- Targeted reduction of congestion revenue rights payouts on a constraint by constraint basis.
- Distribute congestion revenues to the extent that CAISO collected the requisite revenue on the constraint over the month. That is, implement a pro-rata funding for CRRs.
- Allow surpluses on one constraint in one hour to offset deficits on the same constraint in another hour over the course of the month.
- Only distribute surpluses to congestion revenue rights if the surplus is collected on a constraint that the congestion revenue right accrued a deficit, and only up to the full target payment value of the congestion revenue right.
- Distribute remaining surplus revenue at the end of the month, which are associated with constraints that collect more surplus over the month than deficits, to measured demand.
Monthly CRR Revenue
Figure 11 illustrates the daily CRR notional value in the corresponding month for the various transmission elements that experienced congestion during the month. CRR notional value is calculated as the product of CRR implied flow and constraint shadow price in each hour per constraint and CRR.
Figure 11: Daily CRR Notional Value by Transmission Element
Figure 12 illustrates the daily CRR offset value in the corresponding month for the transmission elements that experienced congestion during the month. CRR offset value is the difference between the revenue collected from the congestion and CRR notional value. A positive CRR offset value represents surplus and a negative CRR offset value represents shortfall.
The main reasons for CRR offset shortfall are
- The line 30790_PANOCHE_230_30900_GATES_230_BR_2_1 was binding in 22 days of this month, resulting in offset shortfall of $2.65 million.
- The line 24086_LUGO_500_26105_VICTORVL_500_BR_1 _1 was binding in 11 days of this month, resulting in offset shortfall of $1.16 million.
The main reasons for CRR offset surplus are
- The intertie MALIN500_ISL was binding in one day of this month, resulting in offset surplus of $9.34 million.
- The nomogram HUMBOLDT_EXP_NG_50 was binding in eight days of this month, resulting in offset surplus of $0.95 million.
Figure 12: Daily CRR Offset Value by Transmission Element
Furthermore, Table 5 shows the monthly CRR deficit in the month broken out by transmission elements and Table 6 shows the monthly CRR surplus in the month broken out by transmission elements.
| Constraint | Percent |
|---|---|
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 33.80 |
| 24086_LUGO _500_26105_VICTORVL_500_BR_1 _1 | 15.02 |
| Other | 14.01 |
| 7440_MetcalfImport_Tes-Metcalf | 10.60 |
| HUMBOLDT_IMP_NG_43 | 6.20 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 6.15 |
| 32214_RIO OSO _115_30330_RIO OSO _230_XF_2 | 5.54 |
| IPPUTAH_ITC | 2.28 |
| 24056_ETIWANDA_230_24132_SANBRDNO_230_BR_1 _1 | 2.25 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 2.14 |
| 31090_HMBLT BY_60.0_31100_EEL RIVR_60.0_BR_1 _1 | 2.01 |
| Constraint | Percent |
|---|---|
| MALIN500_ISL | 71.33 |
| HUMBOLDT_EXP_NG_50 | 7.25 |
| Other | 6.85 |
| 99254_J.HINDS2_230_24806_MIRAGE _230_BR_1 _1 | 3.96 |
| NOB_ITC | 3.33 |
| 30055_GATES1 _500_30900_GATES _230_XF_12_P | 1.77 |
| 31000_HUMBOLDT_115_31015_BRDGVLLE_115_BR_1 _1 | 1.53 |
| PALOVRDE_ITC | 1.17 |
| 7510-PAR-PAS-OOS_NG | 1.01 |
| NdGrp: 36411_DIABLO 1_25.0_B1 | 0.93 |
| 31090_HMBLT BY_60.0_31100_EEL RIVR_60.0_BR_1 _1 | 0.86 |
Table 7 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 48.65 |
| PALOVRDE_ITC | 21.46 |
| 24086_LUGO _500_26105_VICTORVL_500_BR_1 _1 | 12.24 |
| Other | 10.32 |
| 7440_MetcalfImport_Tes-Metcalf | 5.62 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 4.50 |
| 99254_J.HINDS2_230_24806_MIRAGE _230_BR_1 _1 | 4.48 |
| NdGrp: 36411_DIABLO 1_25.0_B1 | 3.86 |
| IPPUTAH_ITC | 3.57 |
| 30055_GATES1 _500_30060_MIDWAY _500_BR_1 _1 | 3.50 |
| NdGrp: 24073_JOHANNA _66_B1 | 2.45 |
Table 8 shows the monthly CRR payments. Net monthly balancing surplus in December was $9.86 million. The auction revenues credited to the balancing account for December was $5.68 million. As a result, the balancing account for December had a surplus of approximately $15.54 million, which was allocated to measured demand. The Net Monthly Balancing Surplus is calculated as sum of CRR surplus plus CRR daily Balancing account minus total auction revenue. The Total Auction revenue is sum of monthly and annual auction revenue. The Allocation to Measured demand is calculated as sum of Total Auction revenue plus Net Monthly Balancing Surplus.
| Description | DECEMBER -2022 | NOVEMBER -2022 |
|---|---|---|
| CRR Notional Value | $30,856,453 | $36,183,148 |
| CRR Deficit | -$7,631,198 | -$8,626,969 |
| CRR Settlement Rule | -$16,669 | -$465 |
| CRR Adjusted Payment | $23,208,586 | $27,555,715 |
| CRR Surplus | $13,088,414 | $3,404,180 |
| Monthly Auction Revenue | $3,443,136 | $3,481,930 |
| Annual Auction Revenue | $2,238,777 | $2,162,260 |
| CRR Daily Balancing Account | $2,449,043 | $2,813,161 |
| Net Monthly Balancing Surplus | $9,855,544 | $573,150 |
| Allocation to Measured Demand | $15,537,457 | $6,217,341 |