FTR Fundamentals and Best Practices

Managing Congestion Risk in ISOs/RTOs

May 5-6, 2022 | Online ::

0522-ftr-fundamentals

“The method of delivery was like being in a very targeted lecture and I feel more confident about my understanding of the topics covered in the training!” Economist, Federal Energy Regulatory Commission (FERC)

“An eye opener for someone new to the industry.” Consultant, FTI Consulting

This course will explain the key concepts of financial transmission rights (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
• Congestion and LMP concepts – why we need an FTR/CRR product
• Discuss where congestion comes from
• Discuss why there is 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

Thursday, May 5, 2022 : Central Time

 

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

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?

10:15 – 10:30 a.m. :: Morning Break

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

• Auctions
• Periodicity
• Relationship to energy market
• Settlement

12:15 – 1:00 p.m. :: Lunch Break

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

2:45 – 3:00 pm :: Afternoon Break

3:00 – 4:45 pm :: Assessing the Impact on Congestion Pricing Influenced by Market Changes Such as…

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

Market Participant Objectives & Drivers

• Financial traders
• Generators
• Load serving entities

FTR Transaction Strategy Implementation

• Bid parameters and structure

4:45 pm :: Course Adjourns for Day

 

Friday, May 6, 2022 : Central Time

9:00 – 10:45 a.m. :: Related Topics

• Market-to-Market process and payments
• Double congestion
• SPP RTO West expansion
• Anticipated congestion impacts of FERC Order 2222
• Market Oversight

10:45 – 11:00 a.m. :: Morning Break

11:00 a.m. – 1:00 p.m. :: Settlement Elements

• Auction costs and revenues
• Congestion funding
• Allocations of under-funding
• Shadow settlement

1:00 p.m. :: Course Adjournment

Yohan Sutjandra, Manager – Quantitative Analytics and Research, The Energy Authority

Yohan Sutjandra is Manager of Quantitative Analytics and Research at The Energy Authority (TEA), where he and his team are responsible for modeling the electricity markets that TEA clients participate in, keeping abreast of changes in the market design, and developing analysis to assess the impacts of any proposed market design changes.  He has worked on a variety of projects including applying utility theory to evaluate risk-averse strategies, developing a prototype to the BPA Slice Optimizer, and developing strategies for participation in the congestion rights (CRR/FTR/TCR) allocations and auctions, thereby improving clients’ portfolio values.  Mr. Sutjandra’s team is currently developing strategies to optimally offer into the CAISO market hybrid resources, which pair a storage resource with a different resource type.

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 attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

FTR Fundamentals and Best Practices

May 5-6, 2022 | Online

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before April 01, 2022 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 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.

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Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

 

Who Should Attend

This program will appeal to professionals and support staff who support the following functions relating to ISO/RTO market transactions:

• FTR Market participants
  • Energy traders
  • Load
  • Generators
• Transmission owners and operators
• Transmission and congestion management
• Market, transmission and energy clearing settlements
• Asset and portfolio management
• Back office
• Operations accounting
• RTO/ISO accounting
• Market management
• Business controls
• Commercial operations
• Transaction accounting
• Power management and marketing
• Credit
• Finance
• Financial analysis