In Order 1000, FERC wanted—among other things—to open grid development to private developers. But FERC’s natural allies—the regional transmission organizations—are refusing to go along with this...
Coal's Raw Deal
The bias in RTO markets, and how FERC might fix it.
gaining a hedge.
Perhaps the last word on this problem should belong to one Neal A. Fitch, a regulatory specialist at Reliant Energy Inc.
Mr. Fitch suggests that RTO skill in managing real-time grid operations may not translate to the speculative world of financial derivatives:
"While it has historically been reasonable," he writes, "for the RTO to [act] as the market operator and/or clearinghouse in short-term markets … it is less clear whether or not the RTO should pay a significant role in long-term financial markets that ... deal exclusively with risk management.
"It may be the case that [others] can provide ... long-term FTRs without the added complexity."