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
- NOB intertie was binding in 11 days of this month, resulting in offset surplus of $2.93 million. NOB was derated this month for various outages including the outages of Celilo-Sylmar #3 1000 kV line, Celilo-Sylmar #4 1000 kV line, and Victorville-Rinaldi #1 500 kV line.
The main reasons for CRR offset shortfall is
- The line 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P was binding in ten days of this month, resulting in offset shortfall of $4.40 million.
- The nomogram OMS 8929209_D-SBLR_OOS_CP3 was binding in 24 days of this month, resulting in offset shortfall of $2.57 million. This nomogram was enforced for the outage of Devers-San Bernardino 220 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 |
|---|---|
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 24.60 |
| OMS 8929209_D-SBLR_OOS_CP3 | 22.16 |
| OMS 8701994_50001_OOS_NG | 10.34 |
| Other | 9.70 |
| OMS 8701990_50001_OOS_NG | 9.51 |
| PALOVRDE_ITC | 8.55 |
| 31334_CLER LKE_60.0_31338_KONOCTI6_60.0_BR_1 _1 | 4.77 |
| 22192_DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 | 3.49 |
| 40687_MALIN _500_30005_ROUND MT_500_BR_1 _3 | 2.91 |
| 32806_SNPBLTP2_115_33010_SOBRANTE_115_BR_2 _1 | 2.76 |
| OMS 8702004_50001_OO_NG | 1.21 |
| Constraint | Percent |
|---|---|
| NOB_ITC | 35.76 |
| Other | 15.21 |
| MALIN500_ISL | 13.58 |
| 22468_MIGUEL 500_22472_MIGUELMP 1.0_XF_80 | 10.08 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_2 _3 | 8.83 |
| 30055_GATES1 _500_30060_MIDWAY _500_BR_1 _3 | 6.00 |
| 40687_MALIN _500_30005_ROUND MT_500_BR_1 _3 | 3.21 |
| 31566_KESWICK _60.0_31582_STLLWATR_60.0_BR_1 _1 | 2.22 |
| 24114_PARDEE _230_24147_SYLMAR S_230_BR_1 _1 | 1.97 |
| 32326_ENCL TAP_60.0_32332_PEASE _60.0_BR_1 _1 | 1.87 |
| 31080_HUMBOLDT_60.0_31088_HMBLT JT_60.0_BR_1 _1 | 1.27 |
Table 5.3 shows the monthly CRR payment in the month broken out by transmission elements
| Constraint | Percent |
|---|---|
| OMS 8929209_D-SBLR_OOS_CP3 | 19.03 |
| 22886_SUNCREST_230_22885_SUNCREST_500_XF_2 _P | 17.59 |
| Other | 14.08 |
| 22468_MIGUEL 500_22472_MIGUELMP 1.0_XF_80 | 12.37 |
| 40687_MALIN _500_30005_ROUND MT_500_BR_1 _3 | 10.99 |
| NOB_ITC | 5.62 |
| 30060_MIDWAY _500_24156_VINCENT _500_BR_2 _3 | 5.03 |
| PALOVRDE_ITC | 4.60 |
| OMS 8701994_50001_OOS_NG | 3.68 |
| MALIN500_ISL | 3.66 |
| OMS 8701990_50001_OOS_NG | 3.35 |
Table 5.4 shows the monthly CRR payments. Net monthly balancing surplus in October was $5.14 million. The auction revenues credited to the balancing account for October was $7.95 million. As a result, the balancing account for October had a surplus of approximately $13.09 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 | OCTOBER -2020 | SEPTEMBER-2020 |
|---|---|---|
| CRR Notional Value | $54,212,793 | $52,712,724 |
| CRR Deficit | $-8,947,114 | $-6,548,030 |
| CRR Settlement Rule | $-2,881 | $-14,637 |
| CRR Adjusted Payment | $45,262,798 | $46,150,056 |
| CRR Surplus | $4,100,451 | $8,854,836 |
| Monthly Auction Revenue | $4,510,064 | $7,386,076 |
| Annual Auction Revenue | $3,439,857 | $3,724,405 |
| CRR Daily Balancing Account | $7,990,776 | $6,186,569 |
| Net Monthly Balancing Surplur | $4,141,305 | $3,930,924 |
| Allocation to Measured Demand | $12,091,227 | $15,041,405 |