HEDGE® Financial Transmission Rights Software

HEDGE® is a decision support software application for FTR market participants. It simulates FTR/TCC/CRR auctions and allocation for all existing FTR markets:

• New-York ISO TCC
• ISO New England FTR
• Midwest ISO FTR
• PJM FTR
• California ISO CRR
• ERCOT CRR

HEDGE is a strategic tool for market participants who desire to hedge congestion management through FTR allocations and auctions, as follows:

• First, the market participant defines the value of transmission paths, for example by using Nexant's COMET® software to forecast LMP prices
• Second, for transmission paths for which congestion hedging is required, the market participant develops a FTR strategy, taking advantage of the various FTR products available (options, multi-periods, etc) by simply using HEDGE as a "FTR market in a box"

For NYISO, MISO, CAISO, and ERCOT, HEDGE's calculation engine also solves the actual auctions and allocations (see i-HEDGE system). Thus the software guarantees the same results as the ISO market, assuming the same inputs.

HEDGE models networks in AC or DC mode, and handles any mix of FTR bids:

• Buys and sells
• Obligations and options
• Point-to-point and flowgate
• Single and multiple auction periods

HEDGE can be used by market participants across all FTR markets for:

• Preparing immediate (next auction) bids
• Strategizing for longer term bids
• Auditing awards
• Conducting energy and transmission provider planning