A Further Inquiry into FTR Properties

Benjamin, Richard M.

doi:10.2139/ssrn.1337768

Cited by 2 publications

(2 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Third, while the social benefits associated with ISO net surplus payouts to FTR/CRR holders are unclear, we do have some read on the sizeable nature of the social costs. Benjamin [37,Section V] empirically estimates that FTR market imperfections in ISO-NE, NYISO, and PJM from 2006 through 2008 resulted in hundreds of millions of dollars of additional annual expenses for retail rate-payers in these energy regions, and that this problem appears to be worsening over time.…”

Section: Discussionmentioning

confidence: 99%

ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under LMP

Tesfatsion

2011

IEEE Trans. Power Syst.

View full text Add to dashboard Cite

Abstract-This study uses 5-bus and 30-bus test cases to explore ISO net surplus (congestion rent) collections and allocations in wholesale power markets with grid congestion managed by locational marginal prices (LMPs). Price-sensitivity of demand and generator learning capabilities are taken as experimental treatment factors. A key finding is that conditions resulting in greater generator capacity withholding, hence higher and more volatile LMPs, also result in greater ISO net surplus collections that can be substantial in size. A key conclusion is that ISO net surplus collections should be used pro-actively to mitigate the conditions encouraging generator capacity withholding and hence high and volatile LMPs rather than to provide ex post support for LMP payment offsets and LMP volatility risk hedging as is currently the norm.

show abstract

Section: Discussionmentioning

confidence: 99%

ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under LMP

Tesfatsion

2011

IEEE Trans. Power Syst.

View full text Add to dashboard Cite

show abstract

“…As argued above, doing so would both increase market efficiency and make parties to bilateral contracts better off. Admittedly, this would make existing FTR markets even thinner, but as per Benjamin (2010), the system operator might simply allocate FTRs to LSEs to cover actual power transactions. This would serve the dual …”

Section: Further Thoughts On Hedgingmentioning

confidence: 99%

Financial Transmission Rights

Rosellón¹,

Kristiansen²

2013

Lecture Notes in Energy

View full text Add to dashboard Cite

A Further Inquiry into FTR Properties

Cited by 2 publications

References 37 publications

ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under LMP

ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under LMP

Financial Transmission Rights

Contact Info

Product

Resources

About