The primary function of MISO’s FTR Market is the allocation of Auction Revenue Rights (ARRs) and the auction of Financial Transmission Rights (FTRs). ARRs/ FTRs get issued based on transmission capacity and as a means to provide a financial hedging mechanism to the Load Serving Entities and other Market Participants against congestion charges in MISO's Day-Ahead Market.
Auction Revenue Rights (ARR)
An Auction Revenue Right is a Market Participant’s entitlement to a share of revenue generated in annual FTR auctions. A Market Participant’s firm historical usage of MISO's transmission system determines its share, and depending upon the FTR auction clearing price of an ARR path, the share could result in revenue or a charge.
MISO facilitates annual and monthly FTR Auctions. The annual FTR auction is conducted prior to the beginning of each planning year, and it is conducted in three rounds. Each round is comprised of eight separate markets –peak and off-peak for four seasons.
Monthly FTR auctions are conducted prior to the beginning of each month. Each auction includes two separate markets – peak and off-peak. The peak FTR is valid for the duration of the applicable month for peak hours only.
Market Participants may also take advantage of MISO’s multi-period monthly auction (MPMA). The auction expands on the monthly FTR auction in which Market Participant trade FTRs for not only the next month but also for future months and seasons within the planning year. The MPMA provides a mechanism to mitigate congestion and other risk factors by allowing the quick disposal of FTRs if necessary.
We let stakeholders know when we post FTR related materials, facilitate ARR or FTR workshops and when we make changes to our FTR systems via our mailing list. We keep 90 days worth of ARR-FTR notifications on our website as well.