| Course Title: |
Workshop on PJM ARR and FTR Market |
| Description: |
Financial Transmission Rights (FTRs) are financial instruments that entitle
the holder to a stream of revenues (or charges) based on the hourly day-ahead
energy price differences across the transmission path.
The purpose of an FTR is to provide all market participants the ability
to have price certainty when delivering energy across the PJM system.
FTRs provide a hedging mechanism that can be traded separately from transmission
service. They do not represent a right for physical delivery of power.
Throughout the year, PJM oversees the process of selling and buying FTRs
through FTR auctions. Market participants purchase FTRs by participating
in annual and monthly FTR auctions.
Auction Revenue Rights (ARRs) are the mechanism by which the proceeds
from the FTR auctions are allocated. ARRs are entitlements allocated annually
in the annual ARR allocation to firm transmission service customers that
entitle the holder to receive an allocation of the revenues from the annual
FTR auction. The proceeds from the annual FTR auction are distributed
to ARR holders
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| Slides: |
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| Schedule: |
February 5, 2009 (In-person session only) REGISTER
9:00 a.m. - 4:30 p.m.
Desmond Great Valley Conference Center
February 10, 2009 (Virtual session only) REGISTER
9:00 a.m. – 3:30 p.m.
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| Agenda: |
Overview of Financial Transmission Rights (FTRs)
Overview of Auction Revenue Rights (ARRs)
Overview of Simultaneous Feasibility Test (SFT)
Annual ARR Allocation Process
FTR Auctions & Bilateral Trading
Market Settlements
Annual ARR Allocation Example
Annual FTR Auction Example
eFTR – Market User Interfaces |
| Intended Audience: |
All PJM participants interested in the annual ARR allocation,
the annual auction, the FTR allocation process, as well as the use of FTRs
to hedge the congestion costs of delivering energy. |
| Prerequisites: |
It is recommended that participants have an understanding
of the current FTR market and how FTRs are traded. Familiarity with PJM
market structure and operations, how LMPs are calculated, and how the energy
market operates is also preferred. |
Cost: |
There is no charge to PJM Members. Non-Members are charged a nominal fee. Please contact TrainingSupport@pjm.com for more details.
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PJM reserves the right to discontinue registration and/or cancel
training sessions if enrollment is not sufficient. Every effort
will be made to notify registrants if a change is made.
