The current situation of insufficient investment in transmission tends to weaken the advantages of a deregulated power industry. These shortages mainly arise because of the risk of not recovering the cost of investing in new lines Location Marginal prices (LMPs) and Financial Transmission Rights (FTRs) are key elements in reducing these investment risks. Market participants are able to hedge against price fluctuations caused by transmission congestion through the purchase or sale of FTRs. The value of FTRs, which is tied to the difference in prices between locations in the network, would indicate where transmission expansion should be implemented.