ERCOT CRR Market Whitepaper

Nexant iHedge FTR Market Simulator performs auction clearing calculations for Congestion Revenue Rights (CRR) markets, including those conducted at ERCOT. The iHedge Simulator faithfully models all

CRR bid/offer types and periods supported by ERCOT. It assists in the development of bidding strategies by performing authentic simulations of the auction clearing processes and by providing more detailed

information about congestion paths, prices and awards. It facilitates the recreation of past CRR auctions and the analysis of future auction scenarios from published ERCOT data, so users can introduce simulated bid and other data variants. The iHedge Simulator is a proven decision support application for market participants acquiring or disposing of these financial instruments in ERCOT auctions.Increased visibility and transparency: ERCOT adopts a completetransparency policy in the CRR market that it administers. Before the bid submission window opens for an auction, ERCOT publishes vital data including the network model, contingencies, previously awarded CRRs and constraints, with the exception of budget constraints. After clearing the auction, ERCOT publishes the results - all bids and offers (anonymous), awards (not anonymous), clearing prices and congested paths.

Apr 30, 2015