Common Contracts
1 similar Financial Transmission and Auction Revenue Rights Agreement contracts
Financial Transmission and Auction Revenue RightsFinancial Transmission and Auction Revenue Rights Agreement • May 10th, 2014
In an LMP market, the lowest cost generation is dispatched to meet the load, subject to the ability of the transmission system to deliver that energy. When the lowest cost generation is remote from load centers, the physical transmission system permits that lowest cost generation to be delivered to load. This was true prior to the introduction of LMP markets and continues to be true in LMP markets. Prior to the introduction of LMP markets, contracts based on the physical rights associated with the transmission system were the mechanism used to provide for the delivery of low cost generation to load. Firm transmission customers who paid for the transmission system through rates were the beneficiaries of the system.
