Ensure appropriate investment in transmission and generation infrastructure;
Recognize and respect regional industry differences and preferences;
Encourage cost-effective and not overly complex regional solutions;
Support rational long-term generation resource arrangements that are in turn supported by long-term transmission service provided at just and reasonable rates;
Foster well-functioning wholesale electric markets; and
Ensure that public utility sellers of power at market-based rates
charge “just and reasonable” prices.
Curran, Jennifer. "Beyond Order 1000: Seams Operations and Congestion Management." Presentation to the Harvard Electricity Policy Group's 83rd Plenary Session. Cambridge, MA, June 2, 2016.
EXCERPT FROM THE EXECUTIVE SUMMARY:
This paper is part of an effort to evaluate matters affecting price formation in the energy and ancillary services markets operated by Regional Transmission Operators (RTOs) and Independent System Operators (ISOs) subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC or Commission). It focuses on operator-initiated commitments in the RTOs and ISOs and the challenges in internalizing all relevant physical and operational constraints in the day-ahead and real-time market processes. This paper defines an operator-initiated commitment as a commitment that is not associated with a resource clearing the day-ahead or real-time market on the basis of economics and that is not a self-schedule. Deeming an action to be “operator-initiated” is not intended to confer any judgment that the action is not appropriate or necessary to maintain reliability.
Excerpt from the Executive Summary:
It is time to take stock of the Federal Energy Regulatory Commission’s (“FERC”) electric restructuring policies. APPA believes substantial “mid-course corrections” to FERC’s policies are needed to fix existing Regional Transmission Organizations (“RTOs”) and to encourage non- RTO alternatives in those regions where RTOs are not likely to form.
To protect electric consumers, as the Federal Power Act (“FPA”) requires, FERC should reorient its policies to make sure electric consumers in fact— not just in economic theory—benefit from electric restructuring.