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CleanLaw
Ep 90—Replacing the Utility Transmission Syndicate’s Control, Ari Peskoe & Hannah Dobie
Nov 1, 2023
Ari Peskoe, the Director of the Electricity Law Initiative at Harvard Law School, joins Staff Attorney Hannah Dobie to dive into his latest insights on power sector governance. They dissect how the Federal Energy Regulatory Commission (FERC) influences regional decision-making, often compromising the independence of Regional Transmission Organizations (RTOs). The discussion also touches on the urgent need for reform to boost transparency and representation in RTOs, unlocking the industry's innovative potential and addressing long-standing monopolistic control issues.
47:58
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Quick takeaways
- The dominance of investor-owned utilities compromises the independence of Regional Transmission Organizations, stifling competition and innovation in the electricity market.
- Proposed reforms to RTO governance, such as enhancing transparency and diversifying representation, aim to better accommodate emerging technologies and new market entrants.
Deep dives
Understanding the Role of RTOs
Regional Transmission Organizations (RTOs) were established to facilitate competition in the electricity market by managing the transmission of power independently of utility companies. They emerged around 25 years ago when the Federal Energy Regulatory Commission (FERC) recognized that utilities’ monopolistic control over transmission hindered market development. Initially, RTOs aimed to provide equal service access to all market participants, fostering investment and competition. However, the necessity of voluntary participation by utilities has posed challenges, as their reluctance to join or leave RTOs can impact the effectiveness and independence of the governance structure.
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Discover
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