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 surplus are
The nomogram 6410_CP7_NG was binding in nine days this month, resulting in offset surplus of $0.94 million. This nomogram was enforced for the operating procedure 6410.
The line 34157_PANOCHET_115_34156_MENDOTA _115_BR_1 _1 was binding in most days of this month, resulting in offset surplus of $0.69 million.
The main reasons for CRR offset shortfall are
The nomogram OMS 8797939_D-SBLR_OOS_CP3 was binding in 15 days of this month, resulting in offset shortfall of $3.05 million. This nomogram was enforced for the outage of Devers-San Bernardino 230 kV line.
The nomogram OMS OMS 8797800_D-VST1_OOS_CP3 was binding in nine days of this month, resulting in offset shortfall of $2.14 million. This nomogram was enforced for the outage of Devers-Vista #1 220 kV line.
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 |
|---|---|
| OMS 8797939_D-SBLR_OOS_CP3 | 33.71 |
| OMS 8797800_D-VST1_OOS_CP3 | 23.61 |
| MALIN500_ISL | 13.00 |
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 7.49 |
| 22192_DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 | 5.68 |
| Other | 5.22 |
| 31334_CLER LKE_60.0_31338_KONOCTI6_60.0_BR_1 _1 | 3.76 |
| OMS 8797822_D-VST1_OOS_CP6 | 2.23 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 1.87 |
| OMS 8797939_D-SBLR_OOS_CP6 | 1.86 |
| 22480_MIRAMAR _69.0_22756_SCRIPPS _69.0_BR_1 _1 | 1.56 |
| Constraint | Percent |
|---|---|
| 6410_CP7_NG | 34.20 |
| 34157_PANOCHET_115_34156_MENDOTA _115_BR_1 _1 | 25.06 |
| Other | 17.70 |
| 24254_WINDHUB _230_29401_WINDHUB _500_XF_2 _P | 4.31 |
| RM_TM21_NG | 3.87 |
| 24420_NEENACH _66.0_24452_TAP 85 _66.0_BR_1 _1 | 3.36 |
| 24138_SERRANO _500_24151_VALLEYSC_500_BR_1 _1 | 2.97 |
| SUMMIT-DRUM #1 | 2.55 |
| NdGrp: 24017_BLYTHESC_161_B1 | 2.46 |
| OMS 9458469_Devers_South_230 | 2.05 |
| 30055_GATES1 _500_30060_MIDWAY _500_BR_1 _1 | 1.47 |
Table 7 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| OMS 8797939_D-SBLR_OOS_CP3 | 28.96 |
| OMS 8797800_D-VST1_OOS_CP3 | 23.61 |
| MALIN500_ISL | 22.32 |
| Other | 11.72 |
| OMS 8797939_D-SBLR_OOS_CP6 | 2.44 |
| OMS 8797822_D-VST1_OOS_CP6 | 2.19 |
| 34157_PANOCHET_115_34156_MENDOTA _115_BR_1 _1 | 2.06 |
| NOB_ITC | 1.94 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 1.68 |
| 30765_LOSBANOS_230_30790_PANOCHE _230_BR_2 _1 | 1.57 |
| 24420_NEENACH _66.0_24452_TAP 85 _66.0_BR_1 _1 | 1.53 |
Table 8 shows the monthly CRR payments. Net monthly balancing surplus in March was -$1.70 million. The auction revenues credited to the balancing account for March was $9.18 million. As a result, the balancing account for March had a surplus of approximately $7.48 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 annual auction revenue. The Allocation to Measured demand is calculated as sum of Total Auction revenue plus Net Monthly Balancing Surplus.
| Description | FEBRUARY -2021 | MARCH -2021 |
|---|---|---|
| CRR Notional Value | $20,299,477 | $32,268,342 |
| CRR Deficit | $-4,239,056 | $-9,053,408 |
| CRR Settlement Rule | $-19,927 | $-3,774 |
| CRR Adjusted Payment | $16,040,495 | $23,211,160 |
| CRR Surplus | $21,328,103 | $2,757,614 |
| Monthly Auction Revenue | $1,384,749 | $2,222,645 |
| Annual Auction Revenue | $2,944,629 | $3,291,461 |
| CRR Daily Balancing Account | $3,314,522 | $4,725,374 |
| Net Monthly Balancing Surplur | $20,313,247 | $1,968,882 |
| Allocation to Measured Demand | $24,642,625 | $7,482,987 |