Review on PJM´s ancillary products of Auction Revenue Rights

Author

Zhenyu Fan ; Horger, Tim

Author_Institution

PJM Interconnection, Norristown, PA, USA

fYear

2013

fDate

21-25 July 2013

Firstpage

1

Lastpage

5

Abstract

Financial hedging is a very important tool for risk management in energy market. As the energy market leader, PJM had many years of experiences in its Financial Transmission Rights (FTRs) market which is a financial hedging market. Auction Revenue Rights (ARR), an underlying product of FTRs are allocated every year. PJM also allocated different types of incremental ARR to fulfill this product. This paper will describe the basic structure of ARR and FTRs process in PJM. The different ARR products are also presented. Some of the products relate closely to PJM´s Regional Transmission Expansion Planning (RTEP) process.

Keywords

power markets; power transmission economics; ARR structure; FTR market; PJM ancillary products; PJM regional transmission expansion planning process; RTEP process; auction revenue rights; energy market; financial hedging market; financial transmission rights; risk management; Aggregates; Energy measurement; Instruments; Planning; Pricing; Real-time systems; Resource management; Auction Revenue Rights; Financial Transmission Rights; Regional Transmission Expansion Planning;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting (PES), 2013 IEEE

Conference_Location

Vancouver, BC

ISSN

1944-9925

Type

conf

DOI

10.1109/PESMG.2013.6672137

Filename

6672137