Congestion Revenue Rights Decision Support System

Estimating Congestion Cost and Losses – Strategies for Optimal CRR Nominations

Calculating the cost of power delivery is a complex process that requires forecasting timeseries of locational marginal prices at thousands of nodes – market participants need powerful tools to deliver accurate information. Power Market Consulting, Inc.’s Congestion Revenue Rights Decision Support System (CRR-DSS) evaluates more than 80 million data points and multiple sets of electric power price forecasts to help clients estimate future energy delivery costs from power purchase/sales agreements. CRR-DSS helps companies develop strategies as to which CRRs to acquire and how much they should bid to mitigate the congestion impact.

CRR-DSS enables market participants to:

  • Accurately value power delivery costs associated with congestion and transmission losses from all CAISO defined injection and takeout points in California
  • Work with multiple sets of LMP forecasts for different scenarios
  • Customize objective functions for optimizing CRR nominations and bids
  • Make more confident, structured business decisions with concise data
  • Replace a patchwork of databases and spreadsheets with one, efficient, scalable model

CRR-DSS technology delivers:

  • All CRR allocation and auction business rules and support for future updates
  • Numerical and graphical results
  • Self-contained model using Quantrix viewer
  • Multiple scenarios that can be viewed quickly and easily, and that support custom analysis
  • Analysis and output in a clear and concise format