Staff report assesses the costs of RTOs_ a ‘lessons learned’

Staff report assesses the costs of RTOs_ a ‘lessons learned’

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1、StaffReportonCostRangesfortheDevelopmentandOperationofaDayOneRegionalTransmissionOrganizationDocketNo.PL04-16-000PreparedbytheStaffoftheFederalEnergyRegulatoryCommissionOctober2004ExecutiveSummaryThisStudyisintendedtoinformtheCommissionandfacilitatediscussionswiththeindustryandthestatesregardingRegi

2、onalTransmissionOrganization(RTO)formation.Specifically,thepurposeofthisStudyistoestimatethecostofdevelopingaDayOneRTOthatprovidesindependentandnon-discriminatorytransmissionserviceandsatisfiestheminimumrequirementsofOrderNo.2000tooperateasanRTO.Further,theStudyestimatestheannualoperatingexpensesnec

3、essarytorunsuchanorganization.EstimatesofthecostsofRTOformationvarywidelyandmarketparticipantscitethecostofRTOdevelopmentasasignificantbarriertoRTOformation.TheStudydidnotundertakeananalysisofthebenefitsofRTOs.ThebenefitsofRTOs,suchasmoreefficientdispatchandeliminationofredundantfunctions,havebeenev

4、aluatedinnumerousreports.Forexample,theDepartmentofEnergy(DOE)study,completedinApril2003andsummarizedinExhibit1,foundthatimplementationoftheCommission’sStandardMarketDesignthroughRTOscanprovidebenefitstotheratepayersofthecountry.TheanalyticalbaseforthisStudyrestslargelyoninformationgleanedfromaudits

5、taff,FERCFormNo.1dataandinterviewswithanddataresponsesfromexistingRTOsandIndependentSystemOperators(ISOs).ThisapproachofexaminingactualexperiencesprovidesvaluableinsightintothepotentialcostforanRTOtostart-upandprovideDayOnefunctions.Thesefunctionsincludeopenaccesstransmissionservice,schedulingauthor

6、ityandavailabletransmissioncapacity(ATC)determination,redispatchforcongestionmanagement,ancillaryservices,planning,parallelpathflowmitigation,interregionalcoordinationandmarketmonitoring.TheStudyassumesthataDayOneRTOdoesnothavebid-based,security-constrainedeconomicdispatch,unitcommitment,locationalp

7、rices,financialtransmissionrightsorcapacitymarketsastheNortheastandCaliforniaISOshave.SuchDayTwofunctionsinvolvefurthercostswhicharebeyondthescopeofthisstudy.Eachorganization’suniquecircumstances,such

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