FTR Prices and Zonal Price Differences. As an illustration of the relationship between FTRs and congestion, Figure 12-10 shows Annual FTR Auction prices and an approximate measure of day- ahead and real-time congestion for each PJM control zone for the 2012 to 2013 planning period through September 30, 2012. The day-ahead and real- time congestion are based on the difference between zonal congestion prices and Western Hub congestion prices.
FTR Prices and Zonal Price Differences. As an illustration of the relationship between FTRs and congestion, Figure 13-13 shows Annual FTR Auction prices and an approximate measure of day-ahead and real-time congestion for each PJM control zone for the first ten months of the 2013 to 2014 planning period. The day-ahead and real-time congestion are based on the difference between zonal congestion prices and Western Hub congestion prices. Figure 13‑13 Annual FTR Auction prices vs. average day‑ahead and real‑time congestion for all control zones relative to the Western Hub: 2013 to 2014 planning period through March 31, 2014 FTR Auction LMP DA Congestion RT Congestion $10 $8 $6 $4 $2 ($/MW) $0 -$2 -$4 -$6 -$8 -$10 ComEd DLCO DAY EKPC ATSI AEP DEOK PENELEC AP PPL Met-Ed JCPL PECO AECO Pepco BGE -$12 Effectiveness of ARRs as an Offset to Congestion One measure of the effectiveness of ARRs as an offset to congestion is a comparison of the revenue received by the holders of ARRs and the congestion paid by the holders of ARRs in both the Day-Ahead Energy Market and the Balancing Energy Market. The revenue which serves as an offset for ARR holders comes from the FTR auctions while the revenue for FTR holders is provided by the congestion payments from the Day-Ahead Energy Market and the Balancing Energy Market. During the first ten months of the 2013 to 2014 planning period, the total revenues received by the holders of all ARRs and FTRs offset 100 percent of the total congestion costs within PJM. The comparison between the revenue received by ARR holders and the actual congestion experienced by these ARR holders in the Day-Ahead Energy Market and the Balancing Energy Market is presented by control zone in Table 13-27. ARRs and self-scheduled FTRs that sink at an aggregate are assigned to a control zone if applicable.25 Total revenue equals the ARR credits and the FTR credits from ARRs which are self scheduled as FTRs. The ARR credits do not include the ARR credits for the portion of any ARR that was self scheduled as an FTR since ARR holders purchase self-scheduled FTRs in the Annual FTR Auction and that revenue is then paid back to the ARR holders, netting the transaction to zero. ARR credits are calculated as the product of the ARR MW (excludes any self-scheduled FTR MW) and the cleared price for the ARR path from the Annual FTR Auction. FTR credits equal FTR target allocations adjusted by the FTR payout ratio. The FTR target allocation is equal to the product of the FTR MW and the congestion price dif...
FTR Prices and Zonal Price Differences. As an illustration of the relationship between FTRs and congestion, Figure 12-16 shows Annual FTR Auction prices and an approximate measure of day-ahead and real-time congestion for each PJM control zone for the 2011 to 2012 planning period through December 31, 2011. The day-ahead and real-time congestion are based on the difference between zonal congestion prices and Western Hub congestion prices. The figure shows, for example, that an FTR from the Western Hub to the PECO Control Zone cost $1.88 per MW in the Annual FTR Auction and that about $1.34 per MW of day-ahead congestion and $1.02 per MW of real-time congestion existed between the Western Hub and the PECO Control Zone. The data shows that congestion costs, approximated in this way, were positive for most control zones located east of the Western Hub while congestion costs were negative and were more negative than the price of FTRs for control zones that are located west of that Hub.
