Download - CRR Offers in the Day-Ahead Market
CRR Offers in the Day-Ahead Market
TPTF – August 28, 2007Presented by Mark Patterson
2August 28, 2007 TPTF – CRR Offers in DAM
Contents
• CRR offers to DAM– CRR Offers and Validations– CRR DAM Clearing and Settlement– An example
3August 28, 2007 TPTF – CRR Offers in DAM
CRR offers
• Who can offer their CRRs into the Day-Ahead market?– Only NOIEs, through their QSE
• Protocol ref: 4.3 (1) (b)
• What products can be offered into DAM?– PTP Options– PTP Options with Refund– Products acquired through Allocation or Auction may be offered
• Protocol ref: 4.4.5 (2) & (3)• Once paid for, PCRR allocations of Capacity type, are not differentiated from
other PTP Obligations or PTP Options awarded via Auction.
• What is the meaning of a CRR offer to DAM?– If the DAM LMP is greater than or equal to the Minimum Reservation
Price of a CRR offer, the CRR Account Holder will be paid based on DAM LMPs;
– If the DAM LMP is less than the price offered, the offer is not cleared and the CRR Account Holder will be paid based on RT LMPs.
– If no offer is made, the CRR Account Holder will be settled at DAM LMPs
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Validation of CRR Offers
• CRR Offers shall include the following information:– The name of the QSE submitting– The name of the CRR Account Holder who owns the CRRs– CRR ID – Unique identifier provided by the CRR system at the
conclusion of each allocation and auction– Minimum Reservation Price ($/MWh) – Quantity (MW)– …
• Validation rules– If the QSE and CRR Account Holders are separate entities, the
relationship between the two must be formalized. – The CRR Account Holder is identified as a NOIE– The CRR ID will be validated against the CRR Ownership information
provided on a daily basis to the MMS-DAM by the CRR system– …
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Settlement of DAM Results
• After DAM execution,– If a CRR offer is partially cleared in DAM, the cleared quantity
will be settled using DAM LMPs– Not cleared CRR offers will be settled by Real-Time LMP
• Two notes:– If a NOIE wants declare its CRR PTP options to be settled in
Real-Time, this NOIE shall submit CRR offers to DAM and indicate the Minimum Reservation Price;
– If no Minimum Reservation Price is specified, $2000/MWh will be assigned as a default.
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An Example
CRR settlement:– “CRRID-1”
• 100 MW will be settled by DAM LMP
– “CRRID-2”• 40 MW not offered part will be settled by DAM LMP
• 60 MW not cleared part by Dam will be settled by RT LMP
NOIE: ee QSE: qqSource/Sink settlement points: A/B
Owned CRR Pre Day-Ahead
CRR Offers DAM LMP AB=40$/MW
CRRID CRR Type
Quantity (MW)
Minimum Reservation Price ($/MW)
Quantity (MW)
Cleared Quantity (MW)
CRRID-1 PTP Opt 100 30 60 60
CRRID-2 PTP Opt with RF
100 50 60 0
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Example 1
• Joe’s NOIE CRR Account Holder, owns 100 MW PTP Option between PointA and PointB (CRRID #1)
• Joe’s NOIE QSE offers 100 MW of CRRID #1 into the DAM, with a minimum reservation price of $30 /MW
• After DAM clearing, the price difference between PointA and PointB is $40 / MW
• All 100 MWs of the offered CRR clears at DAM LMPs
• Joe’s NOIE CRR Account Holder will receive $40 /MW for all 100 MW
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Example 2
• Joe’s NOIE CRR Account Holder, owns 100 MW PTP Option between PointA and PointB (CRRID #1)
• Joe’s NOIE QSE offers 60 MW of CRRID #1 into the DAM, with a minimum reservation price of $30 /MW
• After DAM clearing, the price difference between PointA and PointB is $40 / MW
• 60 MWs of the offered CRR clears at DAM LMPs• 40 MWs of the non-offered CRR is paid based on DAM LMPs
• Joe’s NOIE CRR Account Holder will receive $40 /MW for all 100 MW
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Example 3
• Joe’s NOIE CRR Account Holder, owns 100 MW PTP Option between PointA and PointB (CRRID #1)
• Joe’s NOIE QSE offers 60 MW of CRRID #1 into the DAM, with a minimum reservation price of $80 /MW
• After DAM clearing, the price difference between PointA and PointB is $40 / MW
• After RT clearing the price difference between PointA and PointB is $90 / MW
• 40 MWs of the non-offered CRR is paid based on DAM LMPs• 60 MWs of the offered CRR is not cleared, and will flow to RT and be
paid based on RT LMPs
• Joe’s NOIE CRR Account Holder will receive $40 /MW for 40 MW and $90 / MW for 60 MW
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Example 4
• Joe’s NOIE CRR Account Holder, owns 100 MW PTP Option between PointA and PointB (CRRID #1)
• Joe’s NOIE QSE offers 100 MW of CRRID #1 into the DAM, but does not specify a minimum reservation price
• After DAM clearing, the price difference between PointA and PointB is $40 / MW
• After RT clearing the price difference between PointA and PointB is $90 / MW
• 100 MWs of the offered CRR is not cleared because the default price is $2000 / MW, and will flow to RT and be paid based on RT LMPs
• Joe’s NOIE CRR Account Holder will receive $90 /MW for 100 MW
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Example 5
• Tom’s NOIE CRR Account Holder, owns 100 MW PTP Option between PointA and PointB (CRRID #1)
• Bill’s QSE is authorized to represent Tom’s NOIE CRR Account Holder
• Bill’s QSE offers 100 MW of CRRID #1 into the DAM, with a minimum reservation price of $30 /MW
• After DAM clearing, the price difference between PointA and PointB is $40 / MW
• All 100 MWs of the offered CRR clears at DAM LMPs
• Bill’s CRR Account Holder will receive $40 /MW for all 100 MW
12August 28, 2007 TPTF – CRR Offers in DAM
Questions? DAM