CRR Conference Call Meeting Minutes June 20, 2018

Transcription

1 CRR Conference Call Meeting Minutes June 20, 2018 The California Independent System Operator hosts a bi-weekly Congestion Revenue Rights (CRR) conference call on Wednesdays at 11AM. This is an opportunity for Candidate CRR Holders to ask general questions regarding the CRR process. Please send technical and proprietary questions/issues to crrdata@caiso.com. Attendees ISO: Jim McClain (Host), Jacob Fox, Anthony Brown Agenda 1) Introduction Jim McClain 2) Key Dates Anthony Brown 3) Action Items Jim McClain 4) Applet Removal Update Jacob Fox 5) Calendar Changes Discussion Jim McClain 6) May 2018 CRR Revenue Jacob Fox 7) General Questions/Comments Market Participants Key Dates Anthony Brown Monthly Process July Tier 2 Results will be posted today June 20 UDCs must submit Load Migration data for July by noon June 20 July auction opens June 22 and closes June 25 August FNM will be posted June 26 July Auction Results will be posted June 27 August MEQ will be posted June 27 August Outages will be posted July 5 August incremental update will be posted July 10 September Historical load window will open and close July 10 September Forecast load window will open July 11 and close July 12 August Tier 1 will open and close July 12 August Tier 1 results will be posted July 16 August Set-Aside will be posted July 17 August Tier 2 MEQ will be posted July 17 August Tier 2 Opens and Closes July 18 Page 1

2 Annual Process Data templates will be posted June 29 OBAALSE data due to CAISO July 20 ETC Usage Template due July 20 MSS election Due July 20 Action Items Jim McClain Trading Hub Counter flow update The initial thought was that this change could be implemented through the BPM update process but after Legal review it was determined that this change would require a Tariff filing. The ISO is now looking at when we would be able to do this. When we first started discussing this topic on our call there was a request to have an example drafted to illustrate the issue. Shown below is an example of how the TH allocation process worked before PIME and how it works after, to illustrate the issue. Assume the below sample data for settlement PRIOR to PIME pricing for a single hour in the DAM Node Weighting Factor Shift Factor on Constaint K Gen A Gen B Gen C Gen D Gen E Weighting Dis-Aggregated Node Factor CRRs Gen A Gen B Gen C Gen D Gen E Settlement with Trading Hub Counter-flows PRIOR to PIME LSE Awarded 100MW of TH CRR from the TH location to SINK_DLAP LSE Awarded 10MW of TH counter-flow from SINK_DLAP to Gen C Constraint 'K' is binding with a shadow price of $10 Gen 'C' has a shift factor of 0.1 on constraint 'K' Prior to PIME the TH would be paid $13 (100MW * AF for Gen C of.13 * 0.1 SF on constraint *$10 shadow price) Page 2

3 Since Gen C has a shift factor of 0.1 on the constraint and the held CRR is a counter-flow it will get charged $10 (10MW * 0.1 shift factor on constraint 'K' * $10 shadow price) Net settlement in this scenario would have be a payment of $3 ($13 TH payment - $10 counterflow charge) The key point in this example, prior to PIME, is the CRR Holder will never be charged more than what they were paid for the TH CRR Assume the below sample data for CRR settlement scenarios under PIME pricing for a single hour in the DAM Node Weighting Factor Shift Factor on Constraint K Weighted Shift Factor Gen A Gen B Gen C Gen D Gen E Aggregated shift factor Dis- Node Weighting Factor Aggregated CRRs Gen A Gen B Gen C Gen D Gen E Scenario 1 - CRR Settlement without Counter-flows LSE Awarded 100MW of TH CRR, no counter-flows Constraint 'K' is binding with a shadow price of $10 Since the TH location has an aggregated shift factor of less than 2% on constraint 'K' it will not share in any congestion revenues associated with that constraint Scenario 2 - CRR Settlement with counter-flows LSE Awarded 100MW of TH CRR LSE Awarded 10MW of TH Counter-flow on Gen C Constraint 'K' is binding with a shadow price of $10 Since the TH location has an aggregated shift factor of less than 2% on constraint 'K' it will not share in any congestion revenues associated with that constraint Since Gen C has a shift factor of 0.1 on the constraint and the held CRR is a counter-flow it will get charged $10 (10MW * $10 shadow price *.1 shift factor) Net impact for this trade hour is the CRR Holder will be charged $10 Page 3

4 CRR Calendar Update Jim McClain In the past there have been several instances where due to the redundant schedules that are made available we have seen inconsistency between the schedules for various events in the CRR process. In an attempt to eliminate confusion the CRR team will be creating a single calendar for all events that CRR market participants should be aware of. The standard format for the CAISO Settlements calendar has been in Excel so we will be providing a sample of the new format for the CRR annual and monthly calendar for participants review and comment. We are planning on implementing this new format with the 2019 annual and monthly CRR processes. Patch update Jacob Fox The CAISO has received a patch for the CRR software that will eliminate the need to have Java installed and will allow participants to use more current IE browsers. The CAISO is currently performing testing on this patch with the plan to have it in production in a couple of months. As we get closer we will provide participants with updates which will include the timing for training via webinar to go over the changes and when we will have a market simulation environment available for participants. With this patch the changes are mostly transparent to the users but there will be some minor Market User Interface changes but no changes to any of the upload formats, i.e. no XSD or XML changes. General Questions Jim McClain A participant asked about the revenue adequacy values that we have seen over the past few years. When answering this question we need to understand what aspect of CRR revenue adequacy we are addressing. With the current CRR auction efficiency initiative that is going on it is important to understand that there are two aspects to this initiative; revenue adequacy and CRR auction valuation. These two aspects often blend together and have over-lapping effects. To better understand these two aspects please review the documentation located at: y.aspx. When we discuss revenue adequacy on our bi-weekly CRR conference calls we are only addressing the revenue adequacy piece. In addition, when talking about revenue adequacy there are two basic formulas for determining revenue adequacy. One formula solely considers DAM congestion rents as compared to CRR payments, a second formula also considers auction revenue payments when determining revenue adequacy. When we provide the data on revenue adequacy on the bi-weekly CRR conference calls we provide the data to calculate both interpretations of revenue adequacy. On the call I had mentioned that over the past few years we have been revenue adequate, when taking auction revenues into consideration, with the exception of I should have also stated that we were revenue inadequate for To date, through May 2018, the annual period for 2018 is also running revenue inadequate. Listed below are the annual revenue adequacy/<inadequacy> values when using the below formula, from 2011 through May of A positive value is a surplus (revenue adequate) and a negative value is a deficit (revenue inadequate). IFM Congestion Rents Perfect Hedge Adjustments CRR Payments + Auction Revenues (Annual and Monthly) + CRR Settlement Rule Adjustment ,455, ,823,000 Page 4

5 2013 5,291, <82,613,000> ,263, ,973, <21,250,000> 2018 <36,186,000> (Through May 2018) May 2018 Revenue Adequacy Jacob Fox Net CRR Revenues for May was in deficit of $6.971 million, as compared to $ million revenue deficit in April. The break down for the month of May is as follows: IFM Congestion Rents $ Million Perfect Hedge Adjustment $ Million CRR Payments $ Million CRR Revenue Adequacy (deficit) 1 $ Million Total auction revenues for May were $8.182 million. The impact of the settlement rule was The Balancing account had a net Surplus of $1.274 million to be allocated to measured demand. The Top 3 elements with Revenue Insufficiency for interfaces were: 1 OMS _50001_OOS_NG -$0.682 million 2 OMS _OOS_TDM -$0.211 million _TL23040_IV_SPS_NG -$0.209 million The Top 3 elements with Revenue Insufficiency for internal lines/xfmrs were: _DOUBLTTP_138_22300_FRIARS _138_BR_1 _1 -$4.428 million _BARRE _230_24154_VILLA PK_230_BR_1 _1 -$1.848 million _EAGLROCK_230_24059_GOULD _230_BR_1 _1 -$1.275 million 1 Please note that these costs are based on the current settlement calculations. These numbers could be further revised in subsequent settlement runs. Page 5

6 The Top 3 elements with Revenue Sufficiency for interfaces were: 1 NOB_ITC $0.799 million 2 BLYTHE_BG $0.103 million _D-ECASCO_OOS_CP6_NG $0.070 million The Top 3 elements with Revenue Sufficiency for internal lines/xfmrs were: _GATES1 _500_30900_GATES _230_XF_11_S $2.280 million _LUGO _500_26105_VICTORVL_500_BR_1 _1 $0.366 million _BELLOTA _230_30515_WARNERVL_230_BR_1 _1 $0.123 million General Reminders Market participants may also request for items to be added to the agenda. Please send any agenda requests to crrdata@caiso.com by COB, Mondays. General comment/questions should be sent to crrdata@caiso.com in addition to sending it to the particular CRR team members. Thank you, CRR Team Page 6

7 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Dollars ($Million) Global Derate Factor (%) ($35) ($30) ($25) ($20) ($15) ($10) ($5) $0 $5 $10 Revenue Deficiency Above the Line Revenue Surplus Below the May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 CRR Revenue Adequacy ($million) ($1.24) ($7.15) ($3.60) ($3.36) ($0.89) ($3.40)($11.14)($15.45)($7.86) ($6.00) ($4.31) ($4.41) ($1.93) ($4.73) ($6.61) ($7.60) ($5.43)($11.37)($13.78)($19.41)($7.76)($30.13)($11.02)($15.61)($6.97) Balance Account ($million) $6.89 $2.33 $5.75 $5.77 $5.64 $2.00 ($5.04) ($6.56) ($1.34) ($0.37) $2.56 $4.13 $4.12 $1.77 $1.83 ($1.65) $0.75 ($6.40) ($7.98)($12.196$1.441($23.400($5.162)($9.386) $1.275 Global Derate Factor (%) CRR Revenue Adequacy ($million) Balance Account ($million) Global Derate Factor (%) Page 7