FTR Settlements

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• FTR Settlements
• Masoud Shafa

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FTR Settlements

• OVERVIEW
• FTR Holders are entitled to receive a portion of
  the inter-zonal congestion revenues in the
  associated FTR market for both the Day Ahead and
  Hour Ahead markets.
• FTR Holders are also subject to part of the TO
  Debit charges. This charge is applied when
  after the close of day ahead market the
  inter-zonal path is derated and congestion is
  present in the Hour Ahead market.
• If there is no congestion in the Day Ahead, the
  TO Debit Charges will be zero.
• FTR Holders receive Usage Charge revenues in the
  associated FTR market based on the following ISO
  charge types

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FTR Settlements

• Day Ahead Market
• CT 204 DA Inter-Zonal Congestion Refund to FTR
  Holders and TOs
• ?y ATCytd?ytd
  Kytn
• ATCytd (MW) ATC of Inter-Zonal Path y for
  trading interval t in DA
• ?ytd (/MW) Congestion price at Inter-Zonal
  path y for trading interval t in DA.
• Kytn () Percentage of the inter-zonal
  congestion revenue allocation
  for TO n and FTR Holder n of the Congested
  Inter-Zonal path y for the trading
  interval t. DA allocation percentages also
  applies to the HA market.
• ATC OTC - ETC
• Note Any revenues from capacity beyond ATC will
  not be allocated to FTR Holders.
• Revenues from counterschedules will be
  allocated to SCs.
• Revenues from ETC counterschedules
  will be allocated to TOs only..

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FTR Settlements

• Hour Ahead Market
• CT 254 (HA ATC gt DA ATC) ?y (ATCyth - ATCytd
  ) ?yth Kytn
• ATCyth (MW) ATC of Inter-Zonal path y for
  trading interval t in HA
• ATCytd (MW) ATC of Inter-Zonal path y for
  trading interval t in DA
• ?yth (/MW) HA Congestion price at
  Inter-Zonal path y for trading interval t.
• Kytn () Percentage of the inter-zonal
  congestion revenue allocation for TO n
  and FTR Holder n of the Congested Inter-Zonal
  path y for trading interval t. DA
  allocation percentages also applies to the
  HA market.

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FTR Settlements

• Hour Ahead Market TO Debit
• After the close of the DA market, the inter-zonal
  path is derated and the ATC in the HA is less
  than in the DA and congestion is present in the
  HA market.
• FTR Holders and the TOs buy back transmission
  capacity from the SCs whose schedules were cut in
  the HA based on the DA congestion price.
• If NFU Capacity is decreased between DA and HA
  due to reduction of ETC counterschedules, the TO
  Debit charges would only apply to TOs.
• CT 255 (HA ATC lt DA ATC) ?y (ATCytd -
  ATCyth ) ?ytd Kytn
• ATCytd (MW) DA ATC of Inter-Zonal path y for
  trading interval t
• ATCyth (MW) HA ATC of Inter-Zonal path y for
  trading interval t
• ?ytd (/MW) DA Congestion price at
  Inter-Zonal path y for trading interval t.
• Kytn () The percentage of the inter-zonal
  congestion revenue allocation for TO n and FTR
  Holder n of the Congested Inter-Zonal path y for
  trading interval t in both DA
  and HA markets.

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FTR Settlements

• Determination of Kytn
• Kytn (percentage of congestion revenue
  allocation) is calculated according to the
  following conditions
• DA ATC lt Normal ATC
• The entitlement of FTR Holders is not
  reduced until the entitlements of TOs
• associated with that FTR Market have
  been reduced to zero.
• DA ATC gt Normal ATC
• The entitlements of FTR Holders
  associated with that FTR Market shall not
• be increased.

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FTR Settlements

• Determination of Kytn
• For FTR Holders
• If DA ATC gt Total FTR Capacity
• Kytn FTR Holder Capacity / DA
  ATC
• If DA ATC lt Total FTR Capacity
• Kytn FTR Holder Capacity / Total
  FTR Capacity
• For TOs
• If DA ATC gt Total FTR Capacity
• Kytn ( entitlement) (DA ATC
  Total FTR capacity) / DA ATC
• If DA ATC lt Total FTR Capacity
• Kytn 0

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FTR Settlements