Transmission Congestion Contracts (TCC)
Transmission Congestion Contracts (TCCs) enable energy buyers and sellers to hedge transmission price fluctuations. A TCC holder has the right to collect or the obligation to pay congestion rents in the Day-Ahead Market for energy associated with transmission between specified points of injection and withdrawal.The NYISO conducts periodic auctions where TCCs are bought or sold. The auctionsmaximize the value of TCC awards, based on the bids and transmission line andcontingency constraints. An Optimal Power Flow program is used to determine theTCCs awarded in an auction.
