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A Vision for Trasmission: How the RTOs Stand

And where the trouble spots lie in FERC's grid plan.
Fortnightly Magazine - August 2002
  1. a bid-based security-constrained dispatch to give a market basis for the value of congestion. Many also opposed the notion of option-based rights, which insulate the holder from having to pay on a hedge if congestion flows in the opposite direction from expectations. They argued that obligation style-rights would allow RTO to issue a greater quantity of rights and deepen the secondary market.
  2. License-plate pricing schemes are designed to recover embedded costs by charging a fee to transmission cstomers. That fee covers the revenue requirement of the utility that owns the transmission system containing the load served by the transaction in question. License-plate tariffs are called "company rates" in RTO West parlance.

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