MISO’s Financial Transmission Rights (FTR) Market offers a mechanism for market participants to procure a financial hedge to manage the risk associated with fluctuations in congestion costs in the Day Ahead Energy Market.
MISO allocates Auction Revenue Rights (ARR) to market participants based on firm historic use of the transmission system. ARRs entitle the owner to a share of revenue generated in the annual FTR Auction. Market Participants have the option to self-schedule ARRs into FTRs or monetize the ARRs based on market clearing prices in the annual FTR auction.
MISO administers an annual FTR Auction and Multi-Period Monthly Auctions (MPMA). FTR auctions facilitate the buying, selling, and reconfiguration of existing FTRs between Market Participants. FTRs are auctioned according to period (month or season) and time of use (peak or off-peak) and are defined by the FTR receipt and delivery points.