This course will explain the key concepts of financial transmission (FTRs) and congestion revenue rights (CRRs) and their operation in nodal electricity markets.  The general principles underlying the allocation and auction processes for buying and selling FTRs/CRRs will be examined.  There will also be an overview of how all the North American ISOs implement their FTR/CRR and congestion-based mechanisms, including the different terms assigned to similar functions. The financial impacts of these structural elements will be illustrated with examples of scenarios from the varying perspectives of market participants who engage in FTR/CRR transactions to serve as load-serving hedges vs those who trade them as financial (speculative) instruments.

Learning Outcomes

• Analyze the purpose and components of FTRs and the motivation for nodal electricity markets
• Review congestion and LMP concepts – why we need an FTR/CRR product
• Identify where congestion comes from?
• Discuss why there a price difference between load and generator
• Review the process for FTR auctions and ARR allocations
• Compare and contrast different ISO implementations of FTRs
• Review the decision process for both hedging and speculative market participants
• Review current hot topics with FTRs

Credits

EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.3 CEUs for this event.

 

Requirements for Successful Completion of Program

Participants must log in each day and be in attendance for the entirety of the event to be eligible for continuing education credit.

 

Instructional Methods

Case studies, PowerPoint presentations, and panel discussions will be used in this program.

 

Tuesday, April 20, 2021

8:45 – 9:00 am :: Log In & Welcome

9:00 am – 4:30 pm :: Course Timing

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9:00 – 9:15 am :: Overview & Introductions

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9:15 – 10:15 am :: Fundamentals of Nodal Pricing

• Basic LMP constructs
• Relationship to congestion

Transmission and Congestion

• Kirchhoff’s Laws
• Shift factors

Why FTRs?

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10:15 – 10:30 am             Morning Break

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10:30 am – 12:15 pm :: Elements of FTR Markets

• Auctions
• Periodicity
• Relationship to energy market
• Settlement

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12:15 – 1:00 pm               Lunch Break

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1:00 – 2:45 pm :: Congestion Funding

• Flow of congestion funding
  • Where does the congestion money come from?
  • – How it gets paid out
• Revenue adequacy concepts

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2:45 – 3:00 pm :: Afternoon Break

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3:00 – 4:45 pm :: Comparison of FTR/CRR/TCR Processes in Different ISOs

• California ISO (CAISO) – CRRs
• ERCOT – CRRs
• Midcontinent ISO (MISO) – FTRs
• PJM Interconnection (PJM) – FTRs
• Southwest Power Pool (SPP) – TCRs 

4:45 pm :: Course Adjourns for Day

 

Wednesday, April 21, 2021

8:45 – 9:00 am :: Log In

9:00 am – 4:45 pm :: Course Timing 

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9:00 – 10:30 am :: Impact on Congestion Pricing Influenced by Market Changes

• New generation
• Retirements
• New transmission
• Changes in the fuel prices markets
• Etc.

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10:30 – 10:45 am :: Morning Break

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10:45 am – 12:15 pm :: Market Participant Objectives & Drivers

• Financial traders
• Generators
• Load serving entities

FTR Transaction Illustrations

• “In the Money”
• “Out of the Money”

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12:15 – 1:00 pm :: Lunch Break

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1:00 – 3:00 pm :: Settlement Elements

• Type
  • ISO
  • Bi-lateral
• Temporal
  • Daily
  • Monthly
  • Annual  

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3:00 – 3:15 pm :: Afternoon Break

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3:15 – 4:45 pm :: Congestion Hedging Instruments Besides FTRs

• “Up To Congestion” (UTC)

Market Oversight

• FERC
• CFTC
• ISOs/RTOs

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4:45 pm  ::  Course Adjournment

 

Yohan Sutjandra, Research Scientist, The Energy Authority

Yohan Sutjandra is Research Scientist at The Energy Authority (TEA), where he is responsible for modeling the impact of changes in the electricity industry to TEA clients.  In this and prior roles, he has conducted fundamental modeling of the electricity markets, including applying utility theory to structure ARR nominations and FTR bids and modeling ARR allocations based on their impacts on known congested flow-gates. Before he joined TEA in 2009, Mr. Sutjandra was a graduate student at the University of Texas at Austin where he studied the application of optimization methods to solve problems faced by load-serving entities and the use of various financial hedging instruments in the electricity market. He started his career as a software developer for Cadence Design Systems, an Electronic Design Automation company in California.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

Event	Standard Rate	Attendees
Single Connection - FTR Fundamentals	US $ 1295.00
Pack of 5 connections	US $ 5,180.00
Pack of 10 Connections	US $ 9,065.00
Pack of 20 Connections	US $ 15,540.00
Call us at 303.770.8800 if you have any specific questions on the volume discounts
* all other discounts do not apply to license packs
This event has the following related events:
Electricity Market Power, Manipulation Regulation and Enforcement	US $ 1195.00
Pack of 5 connections	US $ 4,780.00
Pack of 10 Connections	US $ 8,365.00
Pack of 20 Connections	US $ 14,340.00
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• Attend the Course and Electricity Market Power, Manipulation Regulation and Enforcement and pay US $ 2,395.00 per attendee (save US $ 95.00 each)