September 29, 2003

What RTO Are You In?

To find out what regional transmission organization you are in, click here.

What is an RTO? An RTO is a Regional Transmission Organization. These entities will over see the operation of the transmission system within its geographical boundries.

If you click on the section of the map that covers the area you live in it will take you to the website for that RTO. For example, I live in California and the RTO is the California Independent System Operator.

If you live in Texas your RTO is ERCOT.

The idea behind RTOs is to help facilitate deregulation and prevent the owners of transmission systems from using those systems strategically (e.g., keeping a competitor from using your transmission lines). Here is how ERCOT defines its role,

ERCOT's role can be described in a historic and forward looking context. Historically, ERCOT has had one primary focus - maintaining the reliable transmission of power across the 37,000-mile power grid within the ERCOT region. However, looking forward, ERCOT will provide the platform for wholesale and retail competition by serving as an honest, independent system operator with no favorites in the marketplace, and no political or monetary stake in the electric utility industry. ERCOT is like the groundskeeper in a football game. ERCOT maintains every aspect of the playing field according to official regulations, so that the two teams can come together and compete in a fair and impartial forum.

Confused? Welcome to the whacky world of energy market deregulation.

Posted by Steve at September 29, 2003 10:30 PM
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