Financial Transmission Rights (FTRs) Frequently Asked Questions
Is the FTR Auction open or closed? Is the FTR Auction a single round auction or multi-round auction?
How do I access the FTR PSSE power flow data that used to be password protected on the ISO web page?
Adjustments may be needed to the timing of 6 month FTRs to eventually sync up with PJM's or NY's annual period for FTRs and TCCs, respectively.
Is the FTR Auction open or closed? Is the FTR Auction a single round auction or multi-round auction?
Closed single round auction. You will see only your own bids.
This is a provision of Section 7.2.1, Reconfiguration of Financial Transmission Rights, of Market Rule 1X.
Yes. Publication of the following information is expected after the close of an auction:
- FTR Market Identification = Annual or Monthly
- Source and Sink identity of the FTR
- Owner Name
- Class = On-peak or Off-peak
- Purchase or Sale
- MW amount
- Clearing Price
FTR Auction results will be posted. Other information that the ISO will post is to be determined (i.e. a new line is going into service next month). "Amounts" of FTRs available will not be posted. FTRs available are dependent on offers and bids.
You can bid for on-peak and for off-peak separately; but not for the full 24 hour day in a single bid.
MWs cleared and path (from Location, to Location) for the full period of the FTR Auction, the winning bidders and FTR clearing prices at all Locations. (See MR 1X, Section 7.3.7) Long-term auction will be posted 6 days after close of bidding window; monthly auction results will be posted 4 days after close of the bidding window. (see Manual M-06, p.3-7)
Accepting a minimum quantity would introduce significant software development effort involving both time and cost.
SMD is patterned after the PJM market design in which a minimum quantity cannot be specified. Specifying a minimum quantity is not allowed in accordance with the NEPOOL OATT and MR- 1X.
The ISO will provide such a timeline to be used in the FTR training modules and during the market trials. The timeline will be posted on the ISO web site.
The FTR Auction value is based on the bid prices. Marginal FTRs set the clearing price. The FTR Auction revenue is based on the clearing prices.
No. FTRs may be sold from any Location to any Location including Node, External Node, Load Zone and Hub.
Schedule 14 of the NEPOOL Tariff defines Eligible FTR Bidder as "an entity that has satisfied the reasonable creditworthiness criteria set by the Participants Committee, and shall not include the Auctioneer, its affiliates, and their officers, directors, employees, consultants and other representatives".
No. In accordance with Section 4 of Manual M-06, the trading deadline for all FTR trades for the Operating Day is the end of the previous Operating Day.
Options are not included in the initial implementation of SMD. The ISO is not currently investigating implementation of options. The ISO may be obligated to pursue implementation of options in the future, depending on the outcome of the Commission NOPR on market design.
Not all transmission contingencies will be run in SFT. The same or similar contingency list will be used in SFT during the FTR Auction as the most recent list in use to clear the Day-Ahead and Real-Time Energy Markets adjusted, as appropriate, to account for future planned transmission enhancements.
No. No generators are modeled in the SFT for the FTR Auction. Only injections from the FTRs that are bid for in the FTR Auction and injections from those FTRs that have already been awarded from a previous FTR Auction are modeled in the SFT process.
The ISO will make decisions on including planned transmission lines in each individual FTR Auction on a case by case basis.
FTRs are not associated with individual ties, but rather the paths enabled by the ties (the ties are represented in the network model, bids are placed at the External Node and interface limits are allowed to constrain the flows/FTRs).
The existence of SPSs will be recognized in conducting the auction. Runbacks have no significance since no generation is modeled.
How do I access the FTR PSSE power flow data that used to be password protected on the ISO web page?
The FTR-pertinent PSSE power flow information and other documents associated with a particular upcoming FTR auction are accessible via the eFTR application by valid FTR bidders/holders. Customers should enter the eFTR application and select the hot link on the top middle of the page called FTR Market.
Winning Eligible FTR Bidders always pay the FTR clearing price for the associated FTR path.
Section 6 of Manual M-28 describes how excess Transmission Congestion Revenues are distributed.
Section 5 of Manual M-06 explains what happens when there are shortfalls or excess collection of Transmission Congestion Revenue.
If Company X bids $10/MW for 100 MW from A to B and Company Y bids $1/MW for 50 MW from A to B and only 40 MW of FTRs can be awarded.
X=40MW @$10/MW and Y= 0
If Company X bids $10/MW for 100 MW from A to B and Company Y bids $1/MW for 50 MW from A to B and only 60 MW of FTRs can be awarded.
X=60MW @$10/MW and Y= 0
If Company X bids $10/MW for 100 MW from A to B and Company Y bids $10/MW for 50 MW from A to B and only 60 MW of FTRs can be awarded.
X=40MW @$10/MW and Y=20MW @$10/MW
If Company X bids $10/MW for 100 MW from A to B and Company Y bids $11/MW for 50 MW from A to B and only 60 MW of FTRs can be awarded.
X=10MW @$10/MW and Y= 50MW @$10/MW
Schedule 15 of the NEPOOL Tariff states that "An entity who pays for new transmission upgrades which increase transfer capability on the NEPOOL Transmission System, making it possible for the System Operator to award additional FTRs in the FTR Auction, shall be awarded ARRs."
Yes. Section 7 of Manual M-06 and Schedule 15 of the NEPOOL Tariff describes how ARRs are allocated to holders of excepted transactions.
