module 4 crr balancing account • describe the crr balancing account • explain the importance of...
TRANSCRIPT
2
• Describe the CRR Balancing Account
• Explain the importance of the Balancing Account to CRR Account Holders and ERCOT
Upon completion of this module, learners will be able to:
Module Objectives: Balancing Account
Reliability Unit
Commitment
CRR BalancingAccount
3
Course Topics
DAMParticipation in DAM• Energy• AS• PTP Obligations
DAM Commitment• Make-Whole
Settlement of CRRs purchased in the Auction
CRR Auction
Revenue Distribution
Charges & Payments for CRRs
CRR BalancingAccount
Reconcile CRRShort payments
4
CRRs Settled in the Day-Ahead Market
Congestion Revenue Rights Balancing Account
Payment due to CRR Account Holders(Target Payment)
• Charges for Cleared DAM Energy Bids
• Charges for Cleared DAM PTP Obligation Bids
• Payments for Cleared DAM Energy Offers
• Payments for Cleared DAM PTP Obligation Bids
5
CRRs Settled in the Day-Ahead Market
Congestion Revenue Rights Balancing Account
Payment due to CRR Account Holders(Target Payment)
• Charges for Cleared DAM Energy Bids
• Charges for Cleared DAM PTP Obligation Bids
• Payments for Cleared DAM Energy Offers
• Payments for Cleared DAM PTP Obligation Bids
Some hours there is not enough
Congestion Rent to pay CRR
Owners
6
CRRs Settled in the Day-Ahead Market
Congestion Revenue Rights Balancing Account
Payment due to CRR Account Holders(Target Payment)
• Charges for Cleared DAM Energy Bids
• Charges for Cleared DAM PTP Obligation Bids
• Payments for Cleared DAM Energy Offers
• Payments for Cleared DAM PTP Obligation Bids
Some hours there is more
Congestion Rent collected than needed to pay CRR Owners
7
CRRs Settled in the Day-Ahead Market
Congestion Revenue Rights Balancing Account
Payment due to CRR Account Holders(Target Payment)
• Charges for Cleared DAM Energy Bids
• Charges for Cleared DAM PTP Obligation Bids
• Payments for Cleared DAM Energy Offers
• Payments for Cleared DAM PTP Obligation Bids
Occurs hourly
8
Credit to CRR Balancing Account
Congestion Revenue Rights Balancing Account
CRRBACR = Max (0, (DACONGRENT + DACRRCRTOT + DACRRCHTOT))
Payment due to CRR Account Holders(Target Payment)
Determinants
CRR Balancing Account Credit
Day-Ahead Congestion Rent
Day-Ahead CRR Credit Total
Day-Ahead CRR Charge Total
9
Any CRR Auction Fees for the month are also added to the CRR Balancing Account
Congestion Revenue Rights Balancing Account
Auction Fees
Determinants
CRR Auction Fee Total
10
CRR Balancing Account: Outcomes
Refunding short paid CRR Account Holders from CRR Balancing Account
Outcome #1
Dispensing remaining funds in CRR Balancing Account
Outcome #2
Refunding short paid CRR Account Holders when funds in CRR Balancing Account are insufficient
Outcome #3
11
CRR Balancing Account: Outcomes
Refunding short paid CRR Account Holders from CRR Balancing Account
Outcome #1
Dispensing remaining funds in CRR Balancing Account
Outcome #2
Refunding short paid CRR Account Holders when funds in CRR Balancing Account are insufficient
Outcome #3
12
CRR Balancing Account
Congestion Revenue Rights Balancing Account
Payment due toCRR Account Holders
Monthly
13
Monthly Refunds to Short-Paid CRR Owners
Short-paid CRR Account Holders receive a refund for any short-paid Operating Hour in a month
Outcome #1
What: Monthly refund to CRR Account Holders that received a Shortfall Charge in the month
Why: Uses Monthly CRR Balancing Account to pay back short paid CRR Account Holders
14
At the end of the month, the CRR Balancing Account and Shortfall charges included:
• CRRBACRTOT = $27,000• CRRFEETOT = $3,000• CRRSAMTTOT = $25,000
If CRRAH1’s shortfall charges were $2,500, will they receive a refund from the Balancing Account? If so, how much of a refund will they receive?
Trigger #1
Monthly Refunds to Short-Paid CRR Owners
Yes! Because CRRBACRTOT + CRRFEETOT are sufficient to fully refund CRRSAMTTOT, CRRAH1 will receive a full refund of $2,500.
Outcome #1
15
Refunds using Monthly CRR Balancing Account
Monthly Refunds to Short-Paid CRR Owners
CRRRAMT o =(-1)* Min (CRRBACRTOT + CRRFEETOT, CRRSAMTTOT) * CRRSAMTRS o
CRRSAMTRS o =
o = CRR Owner
( )Shortfall Charges to CRR Account Holder
Total Shortfall Charges to all CRR Account Holders
DeterminantsCRR Balancing Account Credit TotalCRR Auction Fee Total CRR Refund AmountCRR Shortfall Amount TotalCRR Short Amount Ratio Share
16
CRR Balancing Account: Outcomes
Refunding short paid CRR Account Holders from CRR Balancing Account
Outcome #1
Dispensing remaining funds in CRR Balancing Account
Outcome #2
Refunding short paid CRR Account Holders when funds in CRR Balancing Account are insufficient
Outcome #3
17
CRR Balancing Account
CRR Rolling Balancing Account
Payment due toCRR Account Holders
Monthly
Pay to QSEs representing Load
18
CRR Balancing Account Closure
Payment to QSEs that represent LoadOutcome #2
What:
Monthly payment to QSEs that represent Load to disperse remaining revenues in the Monthly Balancing Account, if the Balancing Account Fund has reached it’s maximum limit
Why: Keeps ERCOT revenue neutral
19
At the end of the month, the CRR Balancing Account and Shortfall charges included:
• CRRBACRTOT = $27,000• CRRFEETOT = $3,000• CRRSAMTTOT = $25,000
The Balancing Account Fund maximum limit has been met. If QSE1’s LRS is 10%, will they receive a payment from the Balancing Account? If so, how much of a payment will they receive?
Trigger #2
CRR Balancing Account Closure
Yes! Because the Balancing Account Fund has reached it’s maximum limit, QSE1 will receive 10% x $5,000, or $500.
Outcome #2
20
CRR Balancing Account Closure
LACRRAMTq = (-1) * Max ((CRRBACRTOT + CRRFEETOT + CRRRAMTTOT)– (FUNDCAP – CRRBAFBBAL),0) * MLRSq
Amount Paid to QSEs that represent Load q =
Total left in Monthly CRR Balancing Account after
reimbursing short pays when Balancing Account Fund is full
Monthly LRS q( ) *
Outcome #2
o = CRR Owner
m = a month
m – 1 = the previous month
q = QSE
Determinants
Load Allocated CRR Amount
CRR Refund Amount Total
CRR Balancing Account Fund CapCRR Balancing Account Fund Beginning Balance
21
CRR Balancing Account: Outcomes
Refunding short paid CRR Account Holders from CRR Balancing Account
Outcome #1
Dispensing remaining funds in CRR Balancing Account
Outcome #2
Refunding short paid CRR Account Holders when funds in CRR Balancing Account are insufficient
Outcome #3
23
Monthly Refunds to Short-Paid CRR Owners
Short-paid CRR Account Holders receive a refund for any short-paid Operating Hour in a month
Outcome #3
What: Monthly refund to CRR Account Holders that received a Shortfall Charge in the month
Why:Uses Monthly CRR Balancing Account and Balancing Account Fund to pay back short paid CRR Account Holders
24
At the end of the month, the CRR Balancing Account and Shortfall charges included:
• CRRBACRTOT = $27,000• CRRFEETOT = $3,000• CRRSAMTTOT = $50,000
With a Balancing Account Fund of $25,000, will the shortpaid CRRAHs be fully refunded?
Trigger #3
CRR Rolling Balancing Account
Yes! Although CRRBACRTOT + CRRFEETOT are insufficient to fully refund CRRSAMTTOT, the remaining $20,000 of refunds can be paid from the Balancing Account Fund.
Outcome #3
25
Refunds using CRR Balancing Account Fund
CRR Rolling Balancing Account
CRRBAFAm = Min (CRRBAFBBAL, CRRSAMTTOT –(CRRBACRTOT + CRRFEETOT))
CRRRAMTo = -1 * Min (CRRBACRTOT + CRRFEETOT + CRRBAFAm, CRRSAMTTOT) * CRRSAMTRSo
Where
o = CRR Ownerm = a month
m – 1 = the previous month
Determinants
CRR Balancing Account Fund Available
CRR Balancing Account Fund Beginning Balance