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 reasons for CRR offset surplus are
- MALIN500_ISL was binding throughout this month, resulting in offset surplus of $0.96 million. Malin500 intertie was derated this month due to various outages includign the outage of Round Mountain-Table Mountain #2 500 kV line and Table Mountain-Vaca 500 kV line.
The main reasons for CRR offset shortfall is
- The nomogram OMS 8797559_EC-SB_OOS_CP3 was binding in 14 days of this month, resulting in offset shortfall of $3.26 million. This nomogram was enforced for the outage of El Casco-San Bernardino 220 kV line.
- The nomogram MIGUEL_BKs_MXFLW_NG was binding in two days of this month, resulting in offset shortfall of $2.29 million. This nomogram was enforced for the outage of Imperial Valley–Suncrest 500 kV line.
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 |
|---|---|
| OMS 8797559_EC-SB_OOS_CP3 | 41.72 |
| MIGUEL_BKs_MXFLW_NG | 19.58 |
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 17.60 |
| Other | 5.23 |
| OMS_9536308_Devers_Vista1 | 4.80 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _S | 3.65 |
| OMS 8797659_SB-VSTA_OOS_CP6 | 2.22 |
| 33315_RAVENSWD_115_35350_AMES BS _115_BR_2 _1 | 2.03 |
| 22192_DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 | 1.32 |
| 32056_CORTINA 60.0_30451_CRTNA M 1.0_XF_1 | 0.97 |
| 7690-KRAMER-INYOK_EXP_NG | 0.89 |
| Constraint | Percent |
|---|---|
| MALIN500_ISL | 46.62 |
| OMS 9076082 ELD-MHV_NG | 15.88 |
| 24086_LUGO _500_26105_VICTORVL_500_BR_1 _1 | 9.76 |
| NOB_ITC | 7.02 |
| RM_TM21_NG | 5.42 |
| Other | 4.92 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_1 _3 | 4.83 |
| IMT-A | 2.34 |
| 7750 CP6_NG | 1.79 |
| 32214_RIO OSO _115_32244_BRNSWKT2_115_BR_2 _1 | 0.76 |
| NdGrp: 24201_BARRE _66.0_B3 | 0.66 |
Table 5.3 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| OMS 8797559_EC-SB_OOS_CP3 | 25.89 |
| MALIN500_ISL | 19.26 |
| OMS 9076082 ELD-MHV_NG | 10.45 |
| Other | 9.14 |
| MIGUEL_BKs_MXFLW_NG | 7.98 |
| NOB_ITC | 6.83 |
| 24086_LUGO _500_26105_VICTORVL_500_BR_1 _1 | 5.47 |
| OMS_9536308_Devers_Vista1 | 4.03 |
| OMS 8797659_SB-VSTA_OOS_CP6 | 3.83 |
| RM_TM21_NG | 3.71 |
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 3.40 |
Table 5.4 shows the monthly CRR payments. Net monthly balancing surplus in January was -$1.81 million. The auction revenues credited to the balancing account for January was $7.89 million. As a result, the balancing account for January had a surplus of approximately $6.08 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 | DECEMBER -2020 | JANUARY -2021 |
|---|---|---|
| CRR Notional Value | $28,729,053 | $24,067,931 |
| CRR Deficit | $-4,397,538 | $-6,471,253 |
| CRR Settlement Rule | $-18,602 | $-3,023 |
| CRR Adjusted Payment | $24,312,912 | $17,593,655 |
| CRR Surplus | $5,659,489 | $2,041,988 |
| Monthly Auction Revenue | $3,734,158 | $3,151,903 |
| Annual Auction Revenue | $3,363,534 | $4,739,626 |
| CRR Daily Balancing Account | $3,639,794 | $4,037,655 |
| Net Monthly Balancing Surplur | $2,201,591 | $-1,811,885 |
| Allocation to Measured Demand | $9,299,283 | $6,079,644 |