Incremental auction revenue right portfolios as qualified upgrade award replacement in the New England market

Abstract

This paper presents a new approach for replacing the current qualified upgrade award (QUA) process in the New England standard market design (SMD). As with the current process, the new process called incremental auction revenue rights (IARR) awards FTR auction revenues to entities that pay for new transmission upgrades making it possible to award additional FTRs in the FTR Auction. The QUA process was designed and implemented as an interim measure and depends heavily on inefficient manual procedures that produce volatile results. Along with the requirements for and characteristics of a permanent award process, the QUA process and the new IARR process are discussed and compared. The proposed rules for nominating relevant paths are introduced. In addition, tables and figures are presented to illustrate the approach