Department of Market Monitoring Report on Willing Seller Market Design for Congestion Revenue Rights posted

The California ISO Department of Market Monitoring (DMM) has posted a report on the Willing Seller Market Design for Congestion Revenue Rights, providing analysis of the congestion revenue rights auction and an alternative market design.

This analysis shows that the willing seller design represents an efficient centralized market for price swaps between willing buyers and sellers that would eliminate losses from the current auction, and allow all congestion rents to be returned to transmission ratepayers. This report follows up on prior recommendations made by DMM for improving the congestion revenue rights market design. DMM is releasing this report in advance of a new Congestion Revenue Rights Enhancements Initiative that the ISO has scheduled to begin with a meeting on Nov. 14, 2024.

Related analysis and recommendations on the performance of the CRR market design are provided in DMM’s annual and quarterly reports.

Information related to market monitoring is available on the Market Monitoring webpage.

Contact information

Please contact Roger Avalos at ravalos@caiso.com or the Department of Market Monitoring at (916) 351-2174 or DMM@caiso.com with any questions.