Deadline Alert for PJM and MISO ARR
For those operating in the PJM or MISO, the opening days for submitting ARR nominations are in early March.
PJM - March 2nd MISO - March 9th
For those unfamiliar with the process, Auction Revenue Rights (ARR) and Financial Transmission Rights (FTR) represent a significant revenue opportunity for energy suppliers in the PJM and MISO ISOs, but it's easy to be confused as to the process.
The primary function of the FTR market is the allocation of Auction Revenue Rights (ARRs) and the auction of 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 the ISO's Day-Ahead Market.
An Auction Revenue Right is a Market Participant’s entitlement to a share of revenue generated in annual FTR auctions.
Confused? You're not alone!
Just know that, when done right, ARRs can mean significant revenues for your company. Basically, this is free money. If you do not participate in these auctions you may be leaving thousands or tens of thousands of dollars that are rightfully yours unclaimed. However, there are risks involved. If you are going to participate in the FTR auction market, experience and planning matters, or else your company could actually lose money.
The annual (PJM) and monthly (MISO) FTR auctions are conducted in early March, prior to the beginning of each planning year. They are conducted in three rounds. Each round is comprised of multiple markets... peak and off-peak. Don’t lose out. Start educating and planning now.
ARR/FTR Relationship: ARRs provide a revenue stream to the firm transmission customers, as a result of the FTR Auction, to hedge against congestion charges.
If you do not participate because of challenges relating to knowledge, time or resources, POWWR can be your ARR agent. We will do all the heavy lifting, including the background point-to-point analyses and the auction submissions. Best of all,... There are no up-front costs to you. We only get paid if you receive a refund.
For more detailed information about ARRs, click here.
Since March, 2019 our clients’ average refund was over $30,000 and one client received nearly $900,000 in refunds!
Whether you go it alone or utilize a third party to administer, now is the time to take action and prepare for the March 1A nominations! If you'd like POWWR's assistance with ARRs, please let us know by February 28 to get your submission entered in time for the deadlines listed above.
About POWWR®: POWWR is a client-centric energy management SaaS and managed services company working with Retailers, Public Power entities, Large C&I and others. They combine industry knowledge and expertise with advanced technology and human ingenuity to bring new insights and value to an ever-changing energy marketplace.
POWWR's Risk Services Team
Brent McIntyre, Senior Director of Risk Services
Brent is one of the most respected risk experts in the energy industry
Brent heads up our Risk Department. Before POWWR, he was responsible for taking XOOM Energy from 0 to 300K meters and 0-47 LDC’s. Brent was also the Director of Supply at LifeEnergy, where he was a POWWR client. He respected the quality of our services so much, that he joined our team! | firstname.lastname@example.org | LinkedIn
For a complete list and bios of our Risk Services Team, click here.
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