Optimal Solutions for CRR Credit Calculations in Energy Market
Explore options for enhancing credit calculation accuracy in the energy market's CRR system. Choose between ERCOT updates, external calculators, or a comprehensive vendor solution to maximize bidding potential and ensure credit requirements are met effectively.
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Presentation Transcript
CRR Credit Calculator CRR Credit Calculator Credit Working Group and Market Credit Working Group September 20, 2017
Current CRR Credit Dynamics Each auction has ~360,000 (600 points, 600x600) unique paths to be bid on. Looking at the most recent auctions: Oct Monthly Credit Coefficients posted on MIS for 2,813 paths Last rolling auction was Seq. 4 1st6 2019: there were no credit coefficients posted on MIS for market participants to use, as this was the first time 2019 CRRs were open to biding Next previous rolling auction Seq. 3 2nd6 2018 Credit Coefficients posted on MIS for 6,845 paths
Option 1 Better information on ERCOT website update calculation methodology This does not address the main issue of missing ACI99/ACP values. Requires market participants to estimate the credit requirements internally which can: Be error prone\impossible due to missing coefficients Can result in overlocking Can result in limited or under bidding from market participants due to the inability to calculate credit requirements internally
Option 2 ERCOT to provide calculator outside of CRR system If ERCOT is providing a calculator, why not just provide it within the CRR system to get more accurate results. Unclear if this option would have all ACI99/ACP values available or if participant must upload/provide. This option would only be an aid and decoupled from the system actually calculating credit exposure which could lead to a lack of faith in the tool.
Option 3 CRR Calculator (vendor solution) This option encompasses all the needs. Market Participants would have the most information and maximize their bidding. A higher confidence in market participant s credit requirements should result in higher CRR values to load.
