On Feb. 4, a Federal Energy Regulatory Commission technical conference on Financial Transmission Rights (FTRs) and Auction Revenue Rights (ARRs) featured several panelists from the industry, including PJM’s Stu Bresler, senior vice president – Markets, and Tim Horger, manager – Market Simulation. The conference was in Washington, D.C.
FERC called for four panels to explore FTR and ARR modeling, sources and apportionment of underfunding, the PJM proposals on using an adder of 1.5 percent on the growth of the load forecast used to evaluate whether transmission upgrades are necessary to ensure that base ARRs can be supported 10 years into the future. PJM’s proposal also calls for removal of netting positive and negative FTRs in FTR portfolios. The fourth panel focused on alternative solutions. Bresler and Horger presented on two panels each.
During the panel on the rationale behind FTR funding, Bresler noted that PJM identified sources of underfunding in a 2012 stakeholder report. He said the report is still valid today.
Although the FERC asked many questions, the FERC staff is expected to issue a call for post-technical conference comments in the near future to get more details about some of the issues raised.