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
PALOVRDE_ITC was binding in 12 days of this month, resulting in offset shortfall of $10.28 million. PALOVRDE_ITC was derated in November driven by the outages discussed in previous section.
The line 33315_RAVENSWD_115_38028_PLO ALTO_115_BR_1 _1 was binding in seven days of this month, resulting in offset shortfall of $1.61 million.
The main reasons for CRR offset surplus are
Malin was binding in 19 days of this month, resulting in offset surplus of $0.49 million. Malin was derated in November driven by the outages discussed in previous section.
The line 30060_MIDWAY_500_24156_VINCENT_500_BR_2_3 was binding in five days of this month, resulting in offset surplus of $0.35 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 |
|---|---|
| PALOVRDE_ITC | 62.66 |
| 33315_RAVENSWD_115_38028_PLO ALTO_115_BR_1 _1 | 9.82 |
| Other | 8.60 |
| 7820_TL 230S_OVERLOAD_NG | 5.52 |
| 33724_LOCKEFRD_60.0_33726_VICTOR _60.0_BR_1 _1 | 3.82 |
| 33203_MISSON _115_33204_POTRERO _115_BR_1 _1 | 3.07 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 1.58 |
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 1.39 |
| 7440_MetcalfImport_Tes-Metcalf | 1.27 |
| 33724_LOCKEFRD_60.0_33736_LODI JCT_60.0_BR_1 _1 | 1.21 |
| 22420_SILVERGT_69.0_22868_URBAN _69.0_BR_1 _1 | 1.06 |
| Constraint | Percent |
|---|---|
| Other | 29.40 |
| MALIN500_ISL | 14.08 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_2 _3 | 9.26 |
| WSTWGMEAD_ITC | 8.79 |
| 32218_DRUM _115_32244_BRNSWKT2_115_BR_2 _1 | 8.67 |
| 30055_GATES1 _500_30060_MIDWAY _500_BR_1 _1 | 5.89 |
| 24801_DEVERS _500_24804_DEVERS _230_XF_2 _P | 5.78 |
| NOB_ITC | 5.67 |
| 99254_J.HINDS2_230_24806_MIRAGE _230_BR_1 _1 | 5.01 |
| 24801_DEVERS _500_24804_DEVERS _230_XF_1 _P | 4.22 |
| NdGrp: 34058_DONNELLS_13.8_B1 | 3.24 |
Table 7 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| PALOVRDE_ITC | 25.45 |
| Other | 18.47 |
| MALIN500_ISL | 13.14 |
| 7820_TL 230S_OVERLOAD_NG | 10.21 |
| 30790_PANOCHE _230_30900_GATES _230_BR_2 _1 | 7.97 |
| 33315_RAVENSWD_115_38028_PLO ALTO_115_BR_1 _1 | 6.67 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_2 _3 | 4.48 |
| 7440_MetcalfImport_Tes-Metcalf | 4.34 |
| 30750_MOSSLD _230_30797_LASAGUIL_230_BR_1 _1 | 3.56 |
| 30055_GATES1 _500_30060_MIDWAY _500_BR_1 _1 | 3.20 |
| 33724_LOCKEFRD_60.0_33726_VICTOR _60.0_BR_1 _1 | 2.53 |
Table 8 shows the monthly CRR payments. Net monthly balancing surplus in November was -$1.96 million. The auction revenues credited to the balancing account for November was $6.59 million. As a result, the balancing account for November had a surplus of approximately $4.64 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 annual auction revenue. The Allocation to Measured demand is calculated as sum of Total Auction revenue plus Net Monthly Balancing Surplus.
| Description | NOVEMBER -2021 | OCTOBER -2021 |
|---|---|---|
| CRR Notional Value | $37,828,976 | $33,218,613 |
| CRR Deficit | -$16,405,829 | -$7,166,641 |
| CRR Settlement Rule | -$99,983 | -$7,345 |
| CRR Adjusted Payment | $21,323,164 | $26,044,627 |
| CRR Surplus | $3,755,642 | $1,934,295 |
| Monthly Auction Revenue | $3,628,216 | $3,905,912 |
| Annual Auction Revenue | $2,968,353 | $3,080,092 |
| CRR Daily Balancing Account | $879,919 | $3,130,998 |
| Net Monthly Balancing Surplus | -$1,961,009 | -$1,920,712 |
| Allocation to Measured Demand | $4,635,561 | $5,065,293 |