Governance
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RTO stakeholder processes must be accessible and provide fair representation for all types of stakeholders, including members of the public, all classes of consumers, and companies who are new entrants to the electricity sector. Prioritizing fair representation within the stakeholder process will result in more equitable and accountable outcomes for the nation’s organized wholesale electricity markets.
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Transparency brings greater accountability to RTO stakeholder processes and RTO governance. Additionally, transparency helps encourage RTO processes and outcomes that are fair and efficient, resulting in a more robust and accountable public record, regardless of the RTO policy outcome
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characteristic of independence. In order to avoid undue influence from any entity or individual, RTOs should function as neutral organizations and should not be impacted by external political interference.
An important protection against RTOs being improperly influenced by outside entities or market participants is the existence of independent market monitors. Independent market monitors evaluate market performance and identify conduct by participants or by RTOs that compromises efficiency or distorts market outcomes.
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By conducting regular and robust oversight of RTO governance and the RTO stakeholder process, FERC can ensure that RTOs serve their intended role and can help consumers receive greater value from organized power markets.
They’re Doing it Wrong
