ARR & FTR Annual Training (Virtual)
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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.
This training course will define an ARR & FTR and provide the participants the necessary information to participate in the allocation and/or auction process for ARRs and FTRs.
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| Target Audience: |
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| Delivery Method: | Virtual |
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NERC Approved:
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No
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NERC ILA #:
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0
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NERC TOTAL CEH:
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0
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Standards CEH:
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0
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Simulation CEH:
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0
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EOP CEH:
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0
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Topics:
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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
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Other Information:
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Cost:
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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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