PJM Interconnection auctions Financial Transmission Rights (FTRs) to assist market participants in hedging price risk when delivering energy on the grid.

FTRs are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly energy-price differences across the transmission path in the Day-Ahead Market.

The FTRs provide a hedging mechanism that can be traded separately from transmission service. This gives all market participants the ability to gain price certainty when delivering energy across PJM. For more information on FTRs, read the FTR FAQs (PDF).