The RTO debate [regional transmission organisations]

On 13 May 1999, the US Federal Energy Regulatory Commission (FERC) issued a Notice of Proposed Rulemaking (NOPR) on regional transmission organizations (RTOs). RTOs are designed to improve efficiency and equity by removing barriers that impede competitive markets. The major debate is on parameters of the RTOs. This article summarizes what appears to be the main points of contention and observes that a key question is getting little attention: will the RTOs do the job? The debate is centered on the form and function of RTOs. Absent from debate is serious discussion on whether the RTO concept will remove barriers and accomplish FERC's efficiency and equity objectives. Most parties assume that RTOs will be created and are taking positions to protect their commercial interests.