Ownership and the independent RTO

Article Abstract:

The Federal Energy Regulatory Commission's (FERC) notice of proposed rulemaking (NOPR) on regional transmission organizations (RTOs) listed four minimum characteristics and seven minimum functions for RTOs. At the core of the NOPR is the nonstakeholder governing board for the RTO. Under the proposed set-up, the individuals who compose the board should have no financial links with market participants or their affiliates. In addition, the board can only have a 1% ownership interest in the RTO. The FERC's rationale for this provision is to ensure independent decision-making.

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Strength through diversity

Article Abstract:

The Federal Energy Regulatory Commission (FERC) is drafting new regulations to ensure comparable open access wholesale transmission services among electric utilities. Diversity is expected to characterize FERC's rulemaking. Regional differences, however, make it necessary for the FERC to consider adapting Edison Electric Institute's six principles on attaining comparability for power pools. Different applications of open access and comparability standards are expected to foster different pooling arrangements.

Regulation and Administration of Communications, Electric, Gas, and Other Utilities, Energy Programs, Energy policy

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