Access documents related to the Long-Term Firm Transmission Rights project.
In response to the Federal Energy Regulatory Commission’s Orders 681 and 681-A of July 20, 2006, as amended on August 1, 2006, ISO New England and stakeholders developed a Long-Term Firm Financial Rights (LFTR) market design which awards by direct allocation or auction a Financial Transmission Right with a term of one year or more. The market design satisfies the seven guidelines contained in Orders 681 and 681-A and was accepted by FERC in a March 13, 2009 letter order.
Implementation of the LFTR market design is critically dependent on developing and finalizing the specific requirements of the ISO’s LFTR financial assurance policies. Since mid-2012, the ISO and the NEPOOL Budget and Finance Subcommittee have been working on an approach that, if approved and implemented, would address all financial assurance concerns associated with the FTR markets, including the financial assurance issues associated with the LFTR market.
The LFTR project is just one of several key projects at the ISO, which continuously undertakes a variety of short- and long-term projects to enhance the region's competitive wholesale electricity markets and ensure reliable operation of the power grid.