Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What are auction revenue rights (ARRs)?

April 26, 2017ARRS auction revenue Rights

0

Posted

What are auction revenue rights (ARRs)?

1 Answer

0

Posted

The revenues from the sale of FTRs will be distributed to auction revenue right (ARR) holders. ARR holders are either those paying congestion costs associated with supplying electricity to serve demand, or those paying for transmission upgrades that create new FTR capability. ARRs provide congestion-paying load serving entities a revenue stream that can be used to help insulate them against congestion costs or defray the costs incurred with acquiring FTRs at auction.