FERC Order 2000

Abstract

This paper discusses FERC order 2000 and the necessity for the formulation of the Regional Transmission Organizations (RTOs). The advantages, problems and implications of RTOs are discussed. RTOs are beneficial in terms of market operation as well as system operation. No doubt that RTOs will affect some participants' interests. However, with so many benefits to the participants and to the system reliability, voluntarism should not be over emphasized and RTOs should be implemented in a more active way.