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.
An independent organization that coordinates, controls, and monitors the operation of the electrical power system and supply in a particular geographic area; similar to Independent System Operator
An organization formed by, but independent of, transmission-owning utilities that is responsible for ensuring nondiscriminatory open transmission access and the planning and security of the combined bulk transmission systems of utilities within a given geographic region. These are also called Independent System Operators (ISO).
An organization that is independent from all generation and power marketing interests and has exclusive responsibility for electric transmission grid operations, short-term electric reliability and transmission services within a multi-state region. To achieve those objectives, the RTO manages transmission facilities owned by different companies and encompassing one, large, contiguous geographic area.
A regional transmission organization established to operate the high-voltage interstate transmission system in a reliable, non-discriminatory manner, and to coordinate with other critical entities, such as participating utilities and generators, neighboring RTO's and power exchanges.
A proposal advanced by the FERC to establish regional transmission groups to expedite the coordination of wholesale wheeling.
A Regional Transmission Organization (RTO) is an organization that is established to control and manage the transportation (at high voltage) and flows of electricity over an area that is generally larger than the typical power company's distribution system.