Papers

The Federal Energy Regulatory Commission (Commission) is amending its regulations under the Federal Power Act (FPA) to advance the formation of Regional Transmission Organizations (RTOs). The regulations require that each public utility that owns, operates, or controls facilities for the transmission of electric energy in interstate commerce make certain filings with respect to forming and participating in an RTO. The Commission also codifies minimum characteristics and functions that a transmission entity must satisfy in order to be considered an RTO. The Commission's goal is to promote efficiency in wholesale electricity markets and to ensure that electricity consumers pay the lowest price possible for reliable service.

FERC. Staff’s Recommendation on Prospective Market Monitoring and Mitigation for the CA Wholesale Electric Power Market. Docket No. EL 00-95-012. 22 March 2001. 42 pages.

FERC. 2004 State of the Markets Report. Staff Report by the Office of Market Oversight and Investigations. June 2005. 255 pages.

EXCERPT FROM THE EXECUTIVE SUMMARY:

Almost all bulk electric power in the United States is generated, transported and consumed in an alternating current (AC) network. Elements of AC systems produce and consume two kinds of power: real power (measured in watts) and reactive power (measured in volt-amperes reactive, or var). Real power accomplishes useful work (e.g., running motors and lighting lamps). Reactive power supports the voltages that must be controlled for system reliability.

Reactive power supply is essential for reliably operating the electric transmission system. Inadequate reactive power has led to voltage collapses and has been a major cause of several recent major power outages worldwide. And while the August 2003 blackout in the United States and Canada was not due to a voltage collapse as that term has been traditionally used, the final report of the U.S.-Canada Power System Outage Task Force (April 2004) said that “insufficient reactive power was an issue in the blackout.” Dynamic capacitive reactive power supplies were exhausted in the period leading up to the blackout.

The Commission invites all interested persons to file comments addressing establishing long term transmission rights in electricity markets operated by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs).

FERC. 2004 State of the Markets Report. Staff Report by the Office of Market Oversight and Investigations. June 2005. 255 pages.

FERC. Order Terminating Proceeding: Remedying Undue Discrimination through Open Access Transmission Service and Standard Electricity Market Design. Docket No. RM01-000. 19 July 2005. 3 pages.

SUMMARY:

Pursuant to Subtitle A (Reliability Standards) of the Electricity Modernization Act of 2005, which added a new section 215 to the Federal Power Act (FPA), the Commission is proposing to amend its regulations to incorporate:

(1) Criteria that an entity must satisfy in order to qualify to be the Electric Reliability Organization (ERO) that will propose and enforce Reliability Standards for the Bulk-Power System in the United States, subject to Commission approval;

(2) Procedures governing enforcement actions by the ERO and the Commission;

(3) Criteria under which the ERO may enter into an agreement to delegate authority to a Regional Entity for the purpose of proposing Reliability Standards to the ERO and enforcing Reliability Standards;
(4) Procedures for the establishment of Regional Advisory Bodies that may provide advice to the Commission, the ERO or a Regional Entity on matters of governance, applicable Reliability Standards, the reasonableness of proposed fees within a region, and any other responsibilities requested by the Commission;

(5) Regulations governing the issuance of periodic reliability reports by the ERO that assess the reliability and adequacy of the Bulk-Power System in North America; and
(6) Regulations pertaining to the funding of the ERO.