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What is a Congestion Revenue Right (CRR)?

April 26, 2017congestion crr revenue right

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What is a Congestion Revenue Right (CRR)?

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10 Posted

A CRR is a financial instrument. Owning a CRR does not entail physical rights. CRRs are defined by a MW amount, Settlement Point of injection and Settlement Point of withdrawal. Conceptually, a CRR owner pays or gets paid the product of the CRR MW amount and the Settlement Point Price (SPP) difference between the CRR injection and withdrawal Settlement Points. ERCOT auctions CRRs monthly and annually, and auction revenues are returned to loads.