It is too soon for results from the nodal system changeover but this could be a sign of things to come. One of the touted advantages was the allocation of congestion costs at the point of congestion. Prior to the change the congestion was too widely spread to be effective.
ERCOT congestion revenue rights value falls in February
Houston (Platts)
Congestion revenue rights acquired in the Electric Reliability Council of Texas auction for February totaled $12.1 million, about 17.1% less than the January total, results posted Monday show.
The total February capacity acquired in the auction was 141,591 MW, about 1.3% less than the January auction’s total.
Of the February value, about $6.8 million was for 53,528 MW in obligation CRRs, and about $5.3 million was for 88,063 MW in option CRRs. The dollar value of January CRRs was $14.6 million.
An obligation CRR is a financial instrument that entitles a CRR owner to be charged or paid when ERCOT’s grid experiences congestion in the day-ahead or real-time markets.
With an option CRR, a purchaser gets revenue if congestion occurs from a particular electricity source to a…