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 33020_MORAGA_115_32780_CLARMNT_115_BR_2 _1 was binding in 11 days of this month, resulting in offset shortfall of $7.92 million.
- The line 33020_MORAGA_115_32780_CLARMNT_115_BR_1 _1 was binding in 16 days of this month, resulting in offset shortfall of $1.42 million.
The main reasons for CRR offset surplus are
- The line 30790_PANOCHE_230_30900_GATES_230_BR_2_1 was binding in 11 days of this month, resulting in offset surplus of $0.73 million.
- The transformer OMS_10860061_RED_BLUFF_XF was binding in 27 days of this month, resulting in offset surplus of $0.44 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 |
|---|---|
| 33020_MORAGA _115_32780_CLARMNT _115_BR_2 _1 | 69.69 |
| 33020_MORAGA _115_32780_CLARMNT _115_BR_1 _1 | 12.48 |
| Other | 5.34 |
| 7440_MetcalfImport_Mossld-Metclf | 3.47 |
| 24016_BARRE _230_25201_LEWIS _230_BR_1 _1 | 1.98 |
| 33203_MISSON _115_33204_POTRERO _115_BR_1 _1 | 1.37 |
| 34562_SCHLNDLR_70.0_34354_SCHINDLR_115_XF_1 | 1.35 |
| SUMMIT-DRUM #2 | 1.28 |
| NdGrp: 32226_BRUNSWCK_115_B1 | 1.21 |
| 33724_LOCKEFRD_60.0_33736_LODI JCT_60.0_BR_1 _1 | 0.93 |
| 32218_DRUM _115_32244_BRNSWKT2_115_BR_2 _1 | 0.90 |
| Constraint | Percent |
|---|---|
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 26.43 |
| Other | 16.52 |
| OMS_10860061_RED_BLUFF_XF | 15.87 |
| NOB_ITC | 13.38 |
| 31336_HPLND JT_60.0_31206_HPLND JT_115_XF_2 | 6.75 |
| MALIN500_ISL | 5.95 |
| 30300_TABLMTN _230_30330_RIO OSO _230_BR_1 _1 | 4.81 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 4.42 |
| 34157_PANOCHET_115_34158_PANOCHE _115_BR_1 _1 | 2.41 |
| 30790_PANOCHE _230_30900_GATES _230_BR_1 _1 | 1.79 |
| NdGrp: 32454_DRUM 5 _13.8_B1 | 1.65 |
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 | 24.08 |
| 7440_MetcalfImport_Mossld-Metclf | 18.90 |
| MALIN500_ISL | 13.56 |
| OMS_10860061_RED_BLUFF_XF | 9.16 |
| 24016_BARRE _230_25201_LEWIS _230_BR_1 _1 | 8.92 |
| NOB_ITC | 7.66 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 5.00 |
| 30055_GATES1 _500_30057_DIABLO _500_BR_1 _1 | 4.64 |
| 34200_ORO LOMA_70.0_34234_POSO J1 _70.0_BR_1 _1 | 4.24 |
| 7820_TL 230S_OVERLOAD_NG | 3.97 |
| Other | 0.13 |
Table 8 shows the monthly CRR payments. Net monthly balancing surplus in February was $1.41 million. The auction revenues credited to the balancing account for February was $5.63 million. As a result, the balancing account for February had a surplus of approximately $7.04 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 | FEBRUARY -2022 | JANUARY -2022 |
|---|---|---|
| CRR Notional Value | $26,439,140 | $30,369,814 |
| CRR Deficit | -$11,369,864 | -$9,393,096 |
| CRR Settlement Rule | -$2,905 | -$1,645 |
| CRR Adjusted Payment | $15,066,371 | $20,975,073 |
| CRR Surplus | $2,762,339 | $2,052,698 |
| Monthly Auction Revenue | $1,838,470 | $2,092,039 |
| Annual Auction Revenue | $3,788,988 | $4,083,608 |
| CRR Daily Balancing Account | $4,275,827 | $3,963,351 |
| Net Monthly Balancing Surplus | $1,410,708 | -$159,598 |
| Allocation to Measured Demand | $7,038,166 | $6,016,049 |