Section 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 5.1 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 5.1: Daily CRR Notional Value by Transmission Element
Figure 5.2 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 reason for CRR offset surplus is
- The nomogram 6410_CP1_NG was binding in two days this month, resulting in offset surplus of $15.03 million. This nomogram was enforced for the operating procedure 6410.
The main reason for CRR offset shortfall is
- The line 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 was binding in 16 days of this month, resulting in offset shortfall of $1.37 million.
Figure 5.2: Daily CRR Offset Value by Transmission Element
Furthermore, Table 5.1 shows the monthly CRR deficit in the month broken out by transmission elements and Table 5.2 shows the monthly CRR surplus in the month broken out by transmission elements.
| Constraint | Percent |
|---|---|
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 31.86 |
| 32214_RIO OSO _115_32244_BRNSWKT2_115_BR_2 _1 | 16.81 |
| OMS 8797659_SB-VSTA_OOS_CP6 | 13.15 |
| Other | 9.89 |
| 33310_SANMATEO_115_33315_RAVENSWD_115_BR_1 _1 | 8.51 |
| SUMMIT-DRUM #1 | 6.05 |
| 31225_HGHLNDJ1_115_31222_REDBUD _115_BR_1 _1 | 5.98 |
| 22192_DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 | 2.08 |
| 33558_LCKFRDJB_115_33562_BELLOTA _115_BR_1 _1 | 1.95 |
| OMS 9076082 ELD-MHV_NG | 1.88 |
| 32394_PLACER _60.0_32228_PLACER _115_XF_1 | 1.84 |
| Constraint | Percent |
|---|---|
| 6410_CP1_NG | 70.49 |
| 37650_TESLA TP_115_33574_LLNL _115_BR_1 _1 | 8.81 |
| NOB_ITC | 6.68 |
| MALIN500_ISL | 4.64 |
| 7820_TL 230S_OVERLOAD_NG | 2.09 |
| Other | 1.98 |
| 6410_CP10_NG | 1.37 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_2 _3 | 1.19 |
| 34157_PANOCHET_115_34156_MENDOTA _115_BR_1 _1 | 1.13 |
| MERCHANT_ITC | 1.07 |
| 6410_CP7_NG | 0.55 |
Table 5.3 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| MALIN500_ISL | 30.76 |
| OMS 8797659_SB-VSTA_OOS_CP6 | 21.77 |
| NOB_ITC | 21.58 |
| 7820_TL 230S_OVERLOAD_NG | 15.27 |
| Other | 7.53 |
| OMS 9076082 ELD-MHV_NG | 6.91 |
| 7750_DV2_N1SV500_NG | 5.38 |
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 2.88 |
| 99254_J.HINDS2_230_24806_MIRAGE _230_BR_1 _1 | 1.19 |
| 22468_MIGUEL 500_22472_MIGUELMP 1.0_XF_80 | 0.96 |
| ME-JF 138 | 0.83 |
Table 5.4 shows the monthly CRR payments. Net monthly balancing surplus in February was $17.11 million. The auction revenues credited to the balancing account for Febuary was $7.53 million. As a result, the balancing account for February had a surplus of approximately $24.64 million, which was allocated to measured demand. The Net Monthly Balancing Surplus is calculates as sum of CRR surplus plus CRR daily Balancing account minus total auction revenue. The Total Auction revenue is sum of monthly and annnual auction revenue. The Allocation to Measured demand is calculated as sum of Total Auction revenue plus Net Monthly Balancing Surplus.
| Description | FEBRUARY -2021 | JANUARY -2021 |
|---|---|---|
| CRR Notional Value | $20,299,477 | $24,067,931 |
| CRR Deficit | $-4,239,056 | $-6,471,253 |
| CRR Settlement Rule | $-19,927 | $-3,023 |
| CRR Adjusted Payment | $16,040,495 | $17,593,655 |
| CRR Surplus | $21,328,103 | $2,041,988 |
| Monthly Auction Revenue | $3,088,969 | $3,151,903 |
| Annual Auction Revenue | $4,447,998 | $4,739,626 |
| CRR Daily Balancing Account | $3,314,522 | $4,037,655 |
| Net Monthly Balancing Surplur | $17,105,657 | $-1,811,885 |
| Allocation to Measured Demand | $24,642,625 | $6,079,644 |