Presentation on theme: "CRR Shortfall – Revenue Equalization Part 2 (Continuation from 2/21/08 TPTF discussion) Bill Barnes TPTF 3/5/2008."— Presentation transcript:
CRR Shortfall – Revenue Equalization Part 2 (Continuation from 2/21/08 TPTF discussion) Bill Barnes TPTF 3/5/2008
2 CRR Settlement Revenue - Overview Day-Ahead CRRs Real-Time PTP Options Real-Time PTP Obligations DerateYes No Funded byDAM Congestion Rent RT Congestion Rent or Load (RTRN) DA Congestion Rent Shortfall Shorted Not Impacted Excess DA Congestion Rent Balancing Account Not Impacted RT Congestion Rent Shortfall Not ImpactedLoad pays Excess RT Congestion Rent No ImpactedLoad gets paid
3 CRR Settlement Revenue - Overview Balancing Account Process – managing CRR revenue adequacy –Day-Ahead Congestion Rent is compared to total Day-Ahead CRR payments on an hourly basis for the Operating day. –If excess Day-Ahead Congestion Rent exists compared to Day-Ahead CRR payments for the hour, excess added to Balancing Account. –If there is not enough Day-Ahead Congestion Rent to cover Day-Ahead CRR payments for the hour, a Day-Ahead shortfall is calculated for the operating day and allocated to DA and RT CRR holders. –At the end of the month, the total shortfall accumulation for the month is compared to Balancing Account accrual. If BA is non-zero, any CRR holders shorted during the month will be made whole up to BA amount. Excess funds in Balancing Account after alleviating CRR shorts will be paid to QSEs based on LRS. –Balancing Account clearing process independent of DAM or RTM invoicing process.
4 CRR Settlement Revenue - Shortfall Allocation Why do we allocate to the Real-Time? –NP Section 4.5.1 (8) “The directional network element flows for PTP Options declared for settlement in Real-Time must be properly accounted for in determining available transmission network capacity in the DAM.” –Translation: DAM clearing engine will make an economic decision to clear a CRR offer (settled in DAM) or reserve the capacity for Real-Time (settled in RT). –Since RT CRR capacity is reserved in the DAM, it would not be covered by DAM Congestion Rent. Why do we allocate a shortfall of DAM Congestion Rent compared to DAM CRR payments to RT CRR Account Holders? –Equitable treatment of all CRR AHs
5 The following slides are from 2/21/2008 TPTF discussion.
6 CRR Settlement Revenue - Shortfall DACONGRENT + DACRR Charges < DACRR Credits –CRR Shortfall Based on revenue shortfall in DAM only –Shortfall assigned to CRR AHs in DAM and RT –Issue: ERCOT pays out money for DAM that it does not collect until RT