[Federal Register Volume 70, Number 95 (Wednesday, May 18, 2005)]
[Notices]
[Page 28519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-2488]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD05-7-000]


Long Term Transmission Rights in Markets Operated by Regional 
Transmission Organizations and Independent System Operators; Notice 
Inviting Comments on Establishing Long Term Transmission Rights in 
Markets With Locational Pricing

May 11, 2005.
    The Commission invites all interested persons to file comments 
addressing establishing long term transmission rights in electricity 
markets operated by Regional Transmission Organizations (RTOs) and 
Independent System Operators (ISOs).
    An important cost of transmission service is the congestion cost 
that customers incur when, due to the physical limitations of the grid, 
they are unable to obtain energy from the lowest cost generation 
resources. In markets with locational pricing, participants can hedge 
against congestion costs by holding Financial Transmission Rights 
(FTRs), which are generally allocated to historical users of the grid. 
Currently, the longest term FTR offered in any of the RTO or ISO 
markets is one year.
    The Commission is aware of interest by some market participants and 
others to obtain transmission service at a known price for periods 
longer than one year in markets that use locational pricing. In 
response, the Commission staff has conducted informal outreach to get 
informal views on the need for, and issues raised by, establishing long 
term transmission rights. At this point, the Commission desires to 
obtain written comments by all interested parties. The Commission is 
particularly interested in comments that address the following:
     The need for long term transmission rights and the 
problems caused by the lack of them. Are such rights needed more by 
certain types of entities or in markets in certain regions?
     The impacts of introducing long term rights. What specific 
impediments or problems must be addressed?
     The plans of specific RTOs and ISOs to address long term 
transmission rights.
     Substantive and procedural options for the Commission to 
address long term transmission rights.
    The Commission is aware that the adequacy of long term transmission 
rights may be an issue in markets that do not use locational pricing 
but believes that there are unique issues in markets with locational 
pricing that are best addressed separately.
    A Commission staff document is available online at http://www.ferc.gov to assist parties in providing comments, but will not be 
published in the Federal Register. The staff document provides 
background on the need for long term transmission rights and the issues 
that must be addressed in introducing them into markets. The document 
also provides specific questions to address as well as general 
background on locational pricing and on FTR allocation methods in the 
existing RTOs and ISOs.
    For further information, contact:
    Wilbur Earley, Office of Markets Tariffs and Rates, 202-502-8087, 
[email protected].
    Udi Helman, Office of Markets Tariffs and Rates, 202-502-8080, 
[email protected].
    Jeffery Dennis, Office of General Counsel, 202-502-6027, 
[email protected].
    The Commission encourages electronic submission of comments in lieu 
of paper using the ``eFiling'' link at http://www.ferc.gov. Persons 
unable to file electronically should submit an original and 14 copies 
of the comment to the Federal Energy Regulatory Commission, 888 First 
Street, NE., Washington, DC 20426.
    All filings in this docket are accessible on-line at http://www.ferc.gov, using the ``eLibrary'' link and will be available for 
review in the Commission's Public Reference Room in Washington, DC. 
There is an ``eSubscription'' link on the Web site that enables 
subscribers to receive e-mail notification when a document is added to 
a subscribed docket(s). For assistance with any FERC Online service, 
please e-mail [email protected], or call (866) 208-3676 (toll 
free). For TTY, call (202) 502-8659.
    Comment Date: 5 p.m. eastern time on June 27, 2005.

Linda Mitry,
Deputy Secretary.
[FR Doc. E5-2488 Filed 5-17-05; 8:45 am]
BILLING CODE 6717-01-P