Definitions for "Regional transmission organization"
An independent governing body that coordinates power generation and transmission within an integrated regional market. The RTO projects the hourly load requirements for the markets it serves, collects bids from generators, and dispatches plants to provide energy, reserve capacity and power regulation services. Based on the bids received, the RTO determines an hourly price for each service. The market-clearing price is charged to all net users of the service and paid to all net suppliers. The RTO also serves as a clearinghouse for payments between generators, utilities and end users.
An organization designated by the Federal Energy Regulatory Commission to direct operation of the regional electric transmission grid in its area, as well as to serve as the independent operator of the regional electric market.
An RTO controls, operates, and may independently own the transmission facilities historically held by a region's vertically integrated public and private utilities. An RTO is an organization independent of the owners. The RTO operates the high-voltage transmission grid to provide non-discriminatory access to the grid so that the lowest-priced wholesale power can be delivered to wholesale customers (e.g., load service entities), while the owners still market and sell power. As a decision-making authority, the RTO neutrally addresses regional transmission issues such as congestion and the resulting higher prices and, via regional coordination, provides efficiency advantages to the grid.