Auction Credit Requirement Issue Impact on ERCOT's CRR Auctions
A software error in the Credit Monitoring and Management system led to incorrect determination of the Effective Auction Clearing Price impacting the Auction Credit Requirement for Congestion Revenue Rights in ERCOT's CRR auctions. The error occurred due to automation in September 2021 and was resolved for the 2022 DEC Monthly Auction 2. The impact was limited to PTP Obligation bids with both EACP and Aci99 less than zero, affecting 445 out of 54,194 bids (0.82%).
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Credit system issue related to the Effective Auction Clearing Price Used to Calculate the CRR Auction Credit Requirement Congestion Management Working Group ERCOT Public Nov. 14 , 2022
Auction Credit Requirement Issue Summary A software error identified in the Credit Monitoring and Management (CMM) system incorrectly determined the Effective Auction Clearing Price (EACP) used to calculate the Auction Credit Requirement (ACR) used for the pre- auction screening process and in the auction clearing process for each Congestion Revenue Rights (CRR) auction. The error occurred after the process of determining the EACP was automated in September 2021. A fix was implemented effective for the 2022.DEC.Monthly.Auction 2 ERCOT Public
Auction Credit Requirement Issue Auction Credit Requirement (ACR) ACR is calculated as the lower of the following applied to each Point-to-Point (PTP) Obligation bid submitted: Path-Specific DAM-Based Adder (Aci99), or Effective Auction Clearing Price (EACP), or Zero Effective Auction Clearing Price (EACP) EACP is calculated for each month of a CRR Obligation bid as a separate factor of the additional credit required for that product. It is based on: the most recent auction clearing price of an awarded Obligation CRR for a path, or the lowest auction clearing price if there are more than one awarded CRR, or zero if no awarded CRRs exist for the path. The error occurred for some CRRs where the end date of the CRR was interpreted to be the first day of the following month. 3 ERCOT Public
Auction Credit Requirement Issue Impact The credit required for PTP Obligation bids was impacted only in months where the EACP and the Aci99 were both less than zero. The corrected EACP may have altered the dominant factor in the min(0, Aci99, ACP) credit term for bid, j, in a specific month, k: k [Hours j,k* max(BidPricej,0) - Hours j,k* Min(0,A ci99, j, ACP j, k )] In terms of impacted bids, the largest impact was 445 bids out of a total of 54,194 (0.82%) PTP Obligation bids. 4 ERCOT Public
Auction Credit Requirement Issue Questions 5 ERCOT Public
