Event Standard RateCopies
Proceedings package US $ 395.00

Financial Transmission Rights (FTRs/CRRs/TCRs)

Event Description and Agenda:

Financial transmission (FTR) and congestion revenue rights (CRR) facilitate mandatory, competitive, open transmission access. While the use of FTRs and CRRs is more or less a customary practice among physical market participants, their increasing use as a purely financial instrument has introduced additional options for the efficient operation of the wholesale power marketplace.

Several market conditions are pushing FTR and CRR practices into more than just a hedging exercise. ISOs and RTOs, along with market participants, are constantly adjusting to ever-changing regulatory and oversight requirements associated with trading practices, credit and risk. In addition, there are many questions about the impacts to congestion management and FTR/CRR markets that are being felt as weather, environmental regulations and accelerating renewable energy penetration compound transmission congestion on the system.

This conference will discuss how these trends are affecting FTR markets in 2015. It will also consider what market operators and market participants are doing to adjust their practices in response. And it will examine what's under development now that could influence future market conditions and measures.

Monday, July 27, 2015

12:30 - 1:00 p.m. :: Registration

1:00 - 1:15 p.m. :: Introduction and Overview

1:15 - 3:15 p.m. :: FTRs - The Markets' Year in Review

Each of the U.S. transmission system operators will provide a synopsis of how its transmission congestion market adjusted its operations and what impacts this produced.


Guillermo Bautista Alderete, Manager of Market Validation & Quality Analysis, California ISO (CAISO)


Dave Maggio, Manager - Congestion Revenue Rights, ERCOT

ISO New England (ISO-NE)

Kevin Coopey, Market Operation Analyst, ISO New England (ISO-NE)

Mid-continent ISO (MISO)

Zakaria Joundi, Manager - FTR and Pricing Administration, Mid-Continent ISO (MISO)

New York ISO (NYISO)

Pradip Ganesan, Market Product Specialist - Energy Market Design, New York ISO (NYISO)

PJM Interconnection (PJM)

Tim Horger, Manager of Market Simulation, PJM Interconnection

Southwest Power Pool (SPP) TCR Market

Charles Cates, Manager - Congestion Hedging, Southwest Power Pool (SPP)

3:15 - 3:30 p.m. :: Afternoon Break

3:30 - 4:15 p.m. :: Keeping Current with FTR Mark-to-Market
  • Growth of contract variety, MISO MPMA, SPP adding second round on prompt month
  • Requirements to mark-to-market FTRs
  • Nuances of each ISOs current contract types for MTM

Rebecca Geraci, Director of ISO Markets Consulting, Yes Energy

Nick Schaffer, Market Information Analyst, Yes Energy

4:15 - 5:00 p.m. :: Managing Risk through Cleared Futures
  • Price risk management
  • Credit risk protection through clearing; layers of protection
  • Liquidity risk management
  • Possibility of clearing Financial Transmission Rights (FTRs)

Ann Sacra, COO, Nodal Exchange

5:00 - 6:00 p.m. :: Networking Reception


Tuesday, July 28, 2015

8:00 - 8:30 a.m. :: Continental Breakfast

8:30 - 9:45 a.m. :: ARR/CRR Allocation and Market Efficiency

Most RTOs incorporate some form of allocation of transmission rights - either directly (e.g., CRRs in CAISO) or indirectly (e.g., ARRs in PJM). There are also exceptions like NYISO that rely exclusively on auctions. This panel will discuss some of these questions:

  • What was the motivation for the adopting the allocation approach and how well has it been working?
  • What are the pros and cons of the different approaches?
  • What impact have historical grandfathered rights had on RR/CRR allocations in different RTOs?
  • Did the creation of ARRs fundamentally alter the role of FTRs in PJM?

Verónica Bósquez, Director - Congestion Management, Customized Energy Solutions (CES)

Harry Singh, Vice President - US Power Trading, Goldman Sachs

Stephen Griffin, Manager - Short Term Trading Desk, Direct Energy

9:45 - 10:00 a.m. :: Morning Break

10:00 a.m. - 12:00 p.m. :: What Trading Organizations Can Do to Proactively Manage Swaps Manipulation Risks

An important dimension in keeping an organization's front office happy with a profitable trading book and the back office happy with a compliant trading book is understanding the rules of the two agencies with oversight of energy trading: the FERC and the CFTC. While each agency has unique compliance requirements - e.g., the CFTC prosecutes disruptive trading practices while the FERC does not - cross-market manipulation cases may raise issues that could bring enforcement actions by both agencies. This is because CFTC-jurisdictional swaps are price-taking to electricity prices that are set by FERC-jurisdictional, price-making transactions. For example, Twin Cities Power recently admitted to a manipulation involving uneconomic physical power flows across the MISO interface to impact real-time energy prices - which a FERC-jurisdictional FTR cannot benefit from, but a CFTC-jurisdictional swap could. How should market participants seeking to be both profitable and compliant operate in this environment? Are there steps to take and factors to consider that would minimize the likelihood of an inquiry by both agencies? This session will discuss what trading organizations can do to proactively manage these risks.

David Applebaum, Acting Director - Division of Investigations, Office of Enforcement, Federal Energy Regulatory Commission (FERC)

John Estes, Partner, Skadden Arps

Matthew Hunter, Deputy Director - Division of Market Oversight / Surveillance Branch, Commodity Futures Trading Commission (CFTC)

Shaun Ledgerwood, Principal, The Brattle Group

12:00 - 1:15 p.m. :: Group Luncheon

1:15 - 2:30 p.m. :: Aligning Model Accuracy to Correlate Better with Market and Auction Performance

This panel will discuss salient issues associated with model accuracy and its correlation with physical congestion issues and the markets' financial instruments, including:

  • Methodologies adopted to appropriately reflect outages and topology changes
  • Consistent modeling of zones between FTRs and day-ahead markets
  • Constraints associated with models
  • Broader market design changes and their reverberation into the FTR process

Dave Maggio, Manager - Congestion Revenue Rights, ERCOT

Mark Gilrain, Chair of MISO FTR working group and Manager - Northeast Congestion, NRG Energy

Zakaria Joundi, Manager of -- FTR and Pricing Administration, Mid-Ccontinent ISO (MISO)

2:30 - 3:30 p.m. :: FTRs and Congestion Hedging

What is the purpose of FTRs? Should they be a congestion hedge in the day-ahead market or a mechanism to distribute total congestion revenues from the day-ahead and real-time markets? This is a question that has divided PJM stakeholders as they debated how to allocate balancing congestion. Despite persistent balancing congestion allocated to FTRs, PJM has significantly improved FTR funding over the last year. What changes made this possible and at what cost? This panel will discuss some of these questions with a focus on what to expect going forward.

Harry Singh, Vice President - US Power Trading, Goldman Sachs

Stephen Griffin, Manager - Short Term Trading Desk, Direct Energy

3:30 - 4:30 p.m. :: Is There an Ideal Set of Time-based Congestion Products for the Market, and Which Ones Work Best Together?

This segment will consider the various time-based congestion products adopted by different markets, why they are different from each other and how they work best together. It will compare off-peak and on-peak products to better align FTR/TCR/CRR financial value with the time-based value of congestion on the system. Also, it will consider the basis for how capacity gets released over time and who benefits from multiple auctions, starting with long-term congestion revenue products (LFTRs/LTCRs/LCRRs, especially in lieu of transmission credits for network upgrades) down to and including multiple, intra-monthly auctions. Finally, this panel will discuss how these products could support financing of renewable energy development, while managing risks between the project location and the off-takers' load.

Charles Cates, Manager - Congestion Hedging, Southwest Power Pool (SPP)

Mak Nagle, Senior Director of Transmission, Apex Clean Energy

By clicking Accept or closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them. more information

By clicking Accept or closing this message, you consent to our cookies on this device in accordance with our cookie policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. We use cookies during the registration process and to remember member settings.