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Long-Term Transmission Rights in RTO and ISO Electricity Markets Status Report of Staff Team

Long-Term Transmission Rights in RTO and ISO Electricity Markets Status Report of Staff Team. April 13, 2005. Objectives. Assess issues associated with long-term transmission rights Identify impediments to solutions Recommend steps to take. Informal Outreach.

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Long-Term Transmission Rights in RTO and ISO Electricity Markets Status Report of Staff Team

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  1. Long-Term Transmission Rights in RTO and ISO Electricity MarketsStatus Report of Staff Team April 13, 2005

  2. Objectives • Assess issues associated with long-term transmission rights • Identify impediments to solutions • Recommend steps to take

  3. Informal Outreach • American Public Power Assoc. (APPA), National Rural Electric Cooperative Assoc. (NRECA), Edison Electric Inst. (EEI), Electric Power Supply Assoc. (EPSA), Electricity Consumers Resource Council (ELCON), Midwest Stand-Alone Transmission Comp. (MSATs) • RTO/ISO staff, consultants, academics, and financial experts

  4. Observations and Issues • Interest in long-term transmission rights is related to several factors: • History and experience with the region’s markets • Ability to diversify risk • Concerns about infrastructure financing • Presence of retail choice

  5. Observations and Issues • Long-term transmission rights are still subject to uncertainty: • Changes in transmission network • Duration of right • Type of FTR (obligation or option) • Rules for FTR payments if RTO is revenue inadequate • Regulatory changes

  6. Next Steps • Continue outreach • Contact wilbur.earley@ferc.gov • Staff paper in early May • Assess comments • Recommendations to Commission

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