Zonal Deliverability Benefits (ZDB) are created when price separation occurs due to import constraints based on excess revenue from the PRA. Zonal Resource Credits (ZRC) will receive the Auction Clearing Price (ACP) based upon the LRZ or ERZ where the Planning Resource underlying the ZRC is physically located.
Price separation between Local Resource Zones (LRZs), External Resource Zones (ERZs), or groupings of LRZs, including Sub-Regional Resource Zone (SRRZs) occurs due to constraints binding in the Planning Resource Auction (PRA).
Q: How do I get a ZDB?
A: ZDBs will be calculated on your daily Market Settlement.
Q: Who is eligible to receive ZDB?
A: Load Serving Entities (LSEs) will receive a Daily Zonal Net Benefit ($) for a Zone where the value represents the reduction in the amount paid by Load in a LRZ to reflect the actual cost of the resources obtained to meet the capacity requirement of such load.
Q: How will I know what my ZDB amount?
A: In your Daily Market Settlement, ZDB will be credited against your ACP as shown in the below example.
**Note: More Q and A below.
Example Daily Market Settlement:
Pertinent Market Settlement Codes
Below info is from BPM-05 Market Settlements MS-OP-029 - 5 Min Calc Guide (pp 361-362)
|*RA_ACP||Daily Resource Adequacy Auction Clearing Price ($/MW); for a Zone. The capacity price at a Local Resource Zone resulting from the Planning Resource Auction.|
|RA_ZN_NET_BNFT||Daily Zonal Net Benefit ($); for a Zone. This value represents the reduction in the amount paid by Load in a LRZ to reflect the actual cost of the resources obtained to meet the capacity requirement of such Load.|
|*RA_PRMR||Daily Resource Adequacy Planning Reserve Margin Requirement (MW); for an AO within a given Zone. = IF “Default Method” THEN
|RA_CLR_PRMR||Daily Resource Adequacy Cleared Planning Reserve Margin Requirement (MW); for an AO. The annual forecasted Demand coincident with MISO’s annual peak, i.e., the Coincident Peak Demand forecast, including transmission losses, times one plus the Planning Reserve Margin of the Local Resource Zone where the Load is located.|
|RA_ADJ_PRMR||Daily Resource Adequacy Adjusted Planning Reserve Margin Requirement (MW); for an AO. The Cleared Planning Reserve Margin Requirement adjusted for those AOs using the Default Method for Retail Load Shifting.|
|*RA_ZRC||Daily Resource Adequacy Zonal Resource Credit (MW); for an AO. A UCAP-based MW that serves as the basis for resources providing capacity in the auction.|
|*RA_HUC||Daily Historic Unit Consideration ($); for an AO. Credit for an AO’s share of Planning Resource Auction revenue resulting from historical transmission ownership or contractual arrangements.|
Q: What were the clearing prices for the 2022-23 PRA Planning Year?
A: Slide 4 from the 2022-23 PRA Results presentation:
Q: What is the excess revenue overview for the 2022-23 PRA Planning Year?
A: Slide 3 from the 2022-23 PRA Excess Revenue Distribution and Surplus Recommendation presentation at the May 25th RASC:
Q: What is the expected distribution of surplus revenue on a PRMR pro-rata basis to Deliverability Benefit Zones for the 2022-23 PRA Planning Year?
A: Slide 6 from the 2022-23 PRA Excess Revenue Distribution and Surplus Recommendation presentation at the May 25th RASC:
End of Q and A