Energy Delivery
Congestion Charge = 100 MWh * ($30-$15) = $1500
FTR Credit = 100 MWh * ($30-$15) = $1500 TR Credit = 100 MW * ($30-$15) = $1500
Notes:
- Let’s look at some examples of consistency and inconsistency.
- In this example, there is a thermal limit from Bus A to Bus B -- this line is congested in the direction shown by the green arrow.
- The Market Participant defined (in advance of real-time) an FTR from Bus A to Bus B for 100 MW (shown by the blue arrow).
- In real-time, the same Market Participant has an energy transaction from Bus A to Bus B for 100 MWh. (shown by the red arrow).
- The congestion charge and FTR Credit calculations are shown at the bottom of the slide.
- Remember, congestion charges are based on the differences between the LMPs at the receiving and sending end buses. In this case, the congestion charge for the 100 MWh transaction is $1500. So, the Market Participant will be charged $1500 for congestion.
- This FTR holder is due a credit equal to the FTR MW value times the difference between the sink and source LMPs, or in this case $1,500.
- So, you can see for this example the FTR holder breaks even or is completely hedged.
- The holder of the FTR is not required to deliver energy in order to receive a congestion credit. If a constraint exists on the transmission system, the holders of FTRs receive a credit based on the FTR MW reservation and the LMP difference between point of delivery and point of receipt. This credit paid to the holder regardless of who delivered energy or of the amount of energy delivered across the path designated in the FTR.