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 CRR. 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 22192_DOUBLTTP_138_22300_FRIARS_138_BR_1_1 was binding in 15 days of this month, resulting in offset shortfall of $2.27 million.
- The line 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 was binding in 29 days of this month, resulting in offset shortfall of $2.57 million.
- The line 35621_IBM-HR J_115_35642_METCALF _115_BR_1 _1 was binding in 15 days of this month, resulting in offset shortfall of $2.17 million.
The main reason for CRR offset surplus is
- NOB_ITC was binding in 23 days of this month, resulting in offset surplus of $1.71 million. NOB_ITC was dearted this month due to the outages discussed in previous section.
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 |
|---|---|
| Other | 36.64 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 10.40 |
| 22192_DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 | 9.20 |
| 35621_IBM-HR J_115_35642_METCALF _115_BR_1 _1 | 8.80 |
| PALOVRDE_ITC | 7.05 |
| OMS 11368744_50001_OOS_NG | 6.44 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 6.22 |
| 33020_MORAGA _115_30550_MORAGA _230_XF_2 _P | 5.12 |
| MIGUEL_BKs_MXFLW_NG | 3.53 |
| 24016_BARRE _230_25201_LEWIS _230_BR_1 _1 | 3.50 |
| 30763_Q0577SS _230_30765_LOSBANOS_230_BR_1 _1 | 3.10 |
| Constraint | Percent |
|---|---|
| Other | 32.44 |
| NOB_ITC | 31.57 |
| MALIN500_ISL | 10.83 |
| 30515_WARNERVL_230_30800_WILSON _230_BR_1 _1 | 4.67 |
| NdGrp: 31846_COVE_RD _13.8_B1 | 3.52 |
| 30055_GATES1 _500_30900_GATES _230_XF_12_P | 3.23 |
| 30500_BELLOTA _230_30515_WARNERVL_230_BR_1 _1 | 3.23 |
| NdGrp: 30245_ROUND MT_230_B3 | 3.03 |
| NdGrp: 31805_PIT 5 _11.5_B1 | 2.90 |
| OMS_11396622_RED_BLUFF_XF2 | 2.76 |
| NdGrp: 31818_PIT 1 U1_11.0_B1 | 1.83 |
Table 7 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| Other | 27.68 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 20.84 |
| 30763_Q0577SS _230_30765_LOSBANOS_230_BR_1 _1 | 17.00 |
| MALIN500_ISL | 8.55 |
| 24016_BARRE _230_25201_LEWIS _230_BR_1 _1 | 6.34 |
| 33020_MORAGA _115_30550_MORAGA _230_XF_2 _P | 4.84 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 3.97 |
| NOB_ITC | 3.55 |
| 30735_METCALF _230_30042_METCALF _500_XF_13 | 2.88 |
| 24016_BARRE _230_24154_VILLA PK_230_BR_1 _1 | 2.18 |
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 2.17 |
Table 8 shows the monthly CRR payments. Net monthly balancing surplus in May was -$0.90 million. The auction revenues credited to the balancing account for May was $7.83 million. As a result, the balancing account for May had a surplus of approximately $6.93 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 | APRIL -2022 | MAY -2022 |
|---|---|---|
| CRR Notional Value | $57,355,620 | $114,740,665 |
| CRR Deficit | -$16,197,149 | -$24,708,149 |
| CRR Settlement Rule | -$20,102 | -$36,389 |
| CRR Adjusted Payment | $41,138,369 | $89,996,126 |
| CRR Surplus | $9,873,519 | $5,438,674 |
| Monthly Auction Revenue | $2,196,451 | $2,880,680 |
| Annual Auction Revenue | $4,892,018 | $4,952,815 |
| CRR Daily Balancing Account | $3,502,183 | $1,497,044 |
| Net Monthly Balancing Surplus | $6,287,233 | -$897,777 |
| Allocation to Measured Demand | $13,375,701 | $6,935,718 |