Title :
The rights to fight price volatility
Author :
Alsaç, O. ; Bright, J.M. ; Brignone, S. ; Prais, M. ; Silva, C. ; Stott, B. ; Vempati, N.
Author_Institution :
Power Applications Comput. Div., Nexant Inc., San Francisco, CA, USA
Abstract :
This article summarizes the basics of financial transmission rights (FTR) and the main market features and outlines current FTR issues and future prospects. This applies to any locational marginal pricing (LMP)-based markets, but specific references are made only to the experience and perspectives acquired so far in North America.
Keywords :
power markets; power transmission economics; pricing; LMP-based market; North America; congestion cost volatility; congestion price volatility; energy markets; financial transmission rights; independent system operator; online technologies; price volatility; Costs; ISO; Instruments; Load flow; North America; Power system modeling; Power systems; Power transmission lines; Pricing; Profitability;
Journal_Title :
Power and Energy Magazine, IEEE
DOI :
10.1109/MPAE.2004.1310873
