CRR

Tue, Jul 14, 2020 02:24 PM

M-D071420-01 Congestion Revenue Rights (CRRs) identified as containing Electrically Similar Settlement Points (ESSPs)


NOTICE DATE: July 14, 2020

NOTICE TYPE: M-D071420-01 CRR

SHORT DESCRIPTION: Congestion Revenue Rights (CRRs) identified as containing Electrically Similar Settlement Points (ESSPs)

INTENDED AUDIENCE: CRR Account Holders

DAYS AFFECTED: July 14, 2020 - June 2022

LONG DESCRIPTION: ERCOT has identified two Resource Nodes in the CRR Network Model that should be designated as ESSPs. ERCOT Protocol Section 2.1 defines ESSPs as “two or more distinct Settlement Points that are either mapped to the same electrical location in a market model or are mapped to locations that are connected by a transmission element with a reactance of less than 0.0005 per unit.” ERCOT Protocol Section 7.5.2.3(6) provides that CRR bids may not contain source and sink Settlement Points that are ESSPs.

The Resource Nodes at issue are RHESS_1 and RHESS2_ESS1. ERCOT has determined that although these Resource Nodes are mapped to the same electrical location, they were not designated as ESSPs in CRR Network Models. ERCOT is in the process of updating the CRR Model to reflect RHESS_1 and RHESS2_ESS1 as ESSPs for all future CRR Auctions. Accordingly, all existing CRRs through June 2022 on the path between RHESS_1 and RHESS2_ESS1 are invalid and will be voided by ERCOT. These existing CRRs will not settle in the Day-Ahead Market (DAM), and no future CRRs will be sold between these ESSPs. ERCOT will refund any Point-to-Point (PTP) Option Award Charges for existing CRRs voided by ERCOT. With respect to the upcoming 2020.AUG.Monthly.Auction CRR Auction, any CRR bids that include RHESS_1 and RHESS2_ESS1 as both the sink and source Settlement Points will be removed by ERCOT.

ACTION REQUIRED: None. ERCOT will contact all CRR Account Holders who will have their CRRs voided; no additional action is required by CRR Account Holders.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.

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