Long-Term Auction Sequences and Transaction Limits Analysis
Explore insights on optimizing auction sequences and transaction limits in the CRR market. Options for utilizing extra capacity and potential system modifications are discussed to enhance efficiency. Key considerations include TOU optimization, auction portfolio management, and system changes for improved functionality and market education.
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Presentation Transcript
CRR Transaction Limits Carrie Bivens Manager, Forward Markets September 9, 2019
Long-Term Auction Sequences Data presented at the last CMWG shows that the 6-month auctions are where there is the most current transaction utilization All Times-of-Use (TOUs) are optimized together in one auction for the monthly auctions but LTAS is actually run as three different optimizations, one for each TOU. Theoretically the transaction limit could be applied to each TOU; however, this has not been previously pursued because of the required system change, and also CRRAHs would have to submit their auction portfolios in three different files, separated by TOU. 2 PUBLIC
Options A no-cost way to use the extra LTAS capacity would be to give the CRR market operator the authority to not open a 2nd round, even if the total transactions exceed the predetermined limit IF the software limitation is not actually exceeded in any given TOU In this scenario, ERCOT could pursue relaxing the existing 4k per LTAS per CRRAH limit (TAC approved number) because there would be a lot more room potentially available Important note: If a 2nd round is required, i.e., a single TOU exceeds 300k transactions, the adjustment period bid limit per AH would be based on the system calculated value, not a per TOU limit Would require a NPRR 3 PUBLIC
Options Alternatively, the system could be modified to fully implement the concept of having individual limits for each TOU Requires changing both the MOI and the MUI Market education would be needed regarding splitting up the auction portfolios They have to be separated so that they can be individually nullified in the case that a 2nd round is needed Would be a NPRR with a nonzero IA Could do the no-cost option on the previous slide upon Board approval and then grey-box the remainder until system implementation 4 PUBLIC
