Download - Module 4 CRR Balancing Account · Module 4. CRR Balancing Account. 2 • Describe the CRR Balancing Account • Explain the importance of the Balancing Account to CRR Account Holders

Module 4

CRR Balancing Account

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


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

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Some hours there is not enough

Congestion Rent to pay CRR

Owners

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Some hours there is more

Congestion Rent collected than needed to pay CRR Owners

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Occurs hourly

8

Credit to CRR Balancing Account


CRRBACR = Max (0, (DACONGRENT + DACRRCRTOT + DACRRCHTOT))


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


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

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Outcome #1


Outcome #2


Outcome #3

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Payment due toCRR Account Holders

Monthly

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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

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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


Yes! Because CRRBACRTOT + CRRFEETOT are sufficient to fully refund CRRSAMTTOT, CRRAH1 will receive a full refund of $2,500.

Outcome #1

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Refunds using Monthly CRR Balancing Account


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

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Outcome #1


Outcome #2


Outcome #3

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CRR Rolling Balancing Account


Monthly

Pay to QSEs representing Load

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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

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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


Yes! Because the Balancing Account Fund has reached it’s maximum limit, QSE1 will receive 10% x $5,000, or $500.

Outcome #2

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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

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Outcome #1


Outcome #2


Outcome #3

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Monthly

23


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

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With a Balancing Account Fund of $25,000, will the shortpaid CRRAHs be fully refunded?

Trigger #3


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

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Refunds using CRR Balancing Account Fund


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

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Monthly

X

may remain short paid

27

$ Describe the purpose and use of the Balancing Account

$ Identify the settlements charges and payments associated with the Balancing Account

Module Summary

Reliability Unit

Commitment


Download - Module 4 CRR Balancing Account · Module 4. CRR Balancing Account. 2 • Describe the CRR Balancing Account • Explain the importance of the Balancing Account to CRR Account Holders

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