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121-483: An independent system operator ( ISO ) is similarly an organization formed at the recommendation of FERC. In the areas where an ISO is established, it coordinates, controls, and monitors the operation of the electrical power system, usually within a single US state, but sometimes encompassing multiple states. RTOs typically perform the same functions as ISOs, but cover a larger geographic area. The two are similar, with an RTO being more clearly defined and born out of

242-639: A flashover and loss of supply. Oscillatory motion of the physical line is termed conductor gallop or flutter depending on the frequency and amplitude of oscillation. Electric power can be transmitted by underground power cables . Underground cables take up no right-of-way, have lower visibility, and are less affected by weather. However, cables must be insulated. Cable and excavation costs are much higher than overhead construction. Faults in buried transmission lines take longer to locate and repair. In some metropolitan areas, cables are enclosed by metal pipe and insulated with dielectric fluid (usually an oil) that

363-636: A US-based ISO. Within the United States one ISO, and its participating utilities, does not fall under FERC authority: The Electric Reliability Council of Texas (ERCOT) . ERCOT falls under the authority of NERC and operates a reliability function, separate from its market function, in order to comply with NERC requirements. ISOs act as a marketplace operator in wholesale power, resulting from FERC order No. 888. Most are set up as nonprofit corporations using governance models approved by FERC and/or regional or local commissions. There are regions of

484-475: A default cost-sharing plan to deliver to state regulators. It "provides for cost-effective expansion of transmission that is being replaced, when needed, known as 'right-sizing' transmission facilities", and it allows states more opportunities to cooperate with utility companies and energy project developers, while preventing states that benefit from regional transmission projects from not paying for them. FERC Order No. 1920-A, an amendment to it passed unanimously

605-408: A diverse membership including public power. Wider membership contributes to the establishment of an entity with the size necessary to function as an RTO. In the 1990s, as states and regions in the United States established wholesale competition for electricity, groups of utilities and their federal and state regulators began forming independent transmission operators that would ensure equal access to

726-1096: A few centimetres in diameter), much of the current flow is concentrated near the surface due to the skin effect . The center of the conductor carries little current but contributes weight and cost. Thus, multiple parallel cables (called bundle conductors ) are used for higher capacity. Bundle conductors are used at high voltages to reduce energy loss caused by corona discharge . Today, transmission-level voltages are usually 110 kV and above. Lower voltages, such as 66 kV and 33 kV, are usually considered subtransmission voltages, but are occasionally used on long lines with light loads. Voltages less than 33 kV are usually used for distribution . Voltages above 765 kV are considered extra high voltage and require different designs. Overhead transmission wires depend on air for insulation, requiring that lines maintain minimum clearances. Adverse weather conditions, such as high winds and low temperatures, interrupt transmission. Wind speeds as low as 23 knots (43 km/h) can permit conductors to encroach operating clearances, resulting in

847-575: A much smaller benefit than the squared reduction provided by multiplying the voltage. Long-distance transmission is typically done with overhead lines at voltages of 115 to 1,200 kV. At higher voltages, where more than 2,000 kV exists between conductor and ground, corona discharge losses are so large that they can offset the lower resistive losses in the line conductors. Measures to reduce corona losses include larger conductor diameter, hollow cores or conductor bundles. Factors that affect resistance and thus loss include temperature, spiraling, and

968-444: A network might otherwise result in synchronization problems and cascading failures . Electricity is transmitted at high voltages to reduce the energy loss due to resistance that occurs over long distances. Power is usually transmitted through overhead power lines . Underground power transmission has a significantly higher installation cost and greater operational limitations, but lowers maintenance costs. Underground transmission

1089-469: A nonprofit corporation, is not a regional transmission organization (RTO) and has no plans to become one, but instead seeks to achieve many of the benefits of an RTO through incremental additions to its functions. ColumbiaGrid was formed after some of its members chose not to continue in efforts to form Grid West, a Northwest evolutionary structure with the ability to add functions and to move toward independent grid management. The ColumbiaGrid members, including

1210-426: A practice that later became known as distributed generation using large numbers of small generators. Transmission of alternating current (AC) became possible after Lucien Gaulard and John Dixon Gibbs built what they called the secondary generator, an early transformer provided with 1:1 turn ratio and open magnetic circuit, in 1881. The first long distance AC line was 34 kilometres (21 miles) long, built for

1331-406: A separate decision, the D.C. Circuit later sustained the commission's conduct of separate environmental assessments when it clarified that the "critical" factor was that all of the pipeline's projects were either under construction or pending before FERC for environmental review at the same time, noting that the projects lacked temporal overlap. Furthermore, in another case, the D.C. Circuit sustained

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1452-635: A separate independent regulatory body be retained, and the FPC was renamed the Federal Energy Regulatory Commission (FERC), preserving its independent status within the department. Its most basic mandate was to "determine whether wholesale electricity prices were unjust and unreasonable and, if so, to regulate pricing and order refunds for overcharges to ratepayers." FERC was also given added responsibility to hear appeals of DOE oil price control determinations and to conduct all "on

1573-687: A situation here." FERC's decisions in those cases are often upheld by the courts. In a July 1, 2014, decision, No Gas Pipeline v. Federal Energy Regulatory Commission , the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) said that pipeline applicants are not likely to pursue many certificates that are hopeless. "The fact that they generally succeed in choosing to expend their resources on applications that serve their own financial interests does not mean that an agency which recognizes merit in such applications

1694-537: A transformer and alternating current lighting system led Westinghouse to begin installing AC systems later that year. In 1888 the first designs for an AC motor appeared. These were induction motors running on polyphase current, independently invented by Galileo Ferraris and Nikola Tesla . Westinghouse licensed Tesla's design. Practical three-phase motors were designed by Mikhail Dolivo-Dobrovolsky and Charles Eugene Lancelot Brown . Widespread use of such motors were delayed many years by development problems and

1815-591: A wide area reduced costs. The most efficient plants could be used to supply varying loads during the day. Reliability was improved and capital costs were reduced, because stand-by generating capacity could be shared over many more customers and a wider area. Remote and low-cost sources of energy, such as hydroelectric power or mine-mouth coal, could be exploited to further lower costs. The 20th century's rapid industrialization made electrical transmission lines and grids critical infrastructure . Interconnection of local generation plants and small distribution networks

1936-490: Is a network of power stations , transmission lines, and substations . Energy is usually transmitted within a grid with three-phase AC . Single-phase AC is used only for distribution to end users since it is not usable for large polyphase induction motors . In the 19th century, two-phase transmission was used but required either four wires or three wires with unequal currents. Higher order phase systems require more than three wires, but deliver little or no benefit. While

2057-425: Is biased," the court said. Others have directly disputed FERC's critics by pointing out, "FERC is a creature of law. It follows a careful administrative path to regulate only a portion of natural gas such as interstate pipelines and LNG import and export terminals. That regulation includes extensive environmental review, driven by many federal laws enacted by Congress, signed by the president, and reviewed and upheld by

2178-657: Is by participating in the related proceeding by submitting comments and participating in public comment sessions, site visits and scoping meetings, since FERC decisions can be appealed up to the Supreme Court. There are regions of the country where the state public utility commission and the FERC regulated Regional Transmission Organization operate in identical footprints (such as in New York State ). Where this occurs, state policy makers and FERC frequently clash as to

2299-416: Is commonplace, and rules or recommendations introduced by FERC often are voluntarily accepted by NERC members outside of FERC's jurisdiction. Therefore, one Canadian Province is a member of a U.S.-based RTO, while two others function as an Electric System Operator (ESO), an organization essentially equal to a U.S.-based ISO. Some ISOs and RTOs also act as a marketplace in wholesale power, especially since

2420-668: Is either static or circulated via pumps. If an electric fault damages the pipe and leaks dielectric, liquid nitrogen is used to freeze portions of the pipe to enable draining and repair. This extends the repair period and increases costs. The temperature of the pipe and surroundings are monitored throughout the repair period. Underground lines are limited by their thermal capacity, which permits less overload or re-rating lines. Long underground AC cables have significant capacitance , which reduces their ability to provide useful power beyond 50 miles (80 kilometres). DC cables are not limited in length by their capacitance. Commercial electric power

2541-473: Is improved at higher voltage and lower current. The reduced current reduces heating losses. Joule's first law states that energy losses are proportional to the square of the current. Thus, reducing the current by a factor of two lowers the energy lost to conductor resistance by a factor of four for any given size of conductor. The optimum size of a conductor for a given voltage and current can be estimated by Kelvin's law for conductor size, which states that size

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2662-482: Is known as the base load and is generally served by large facilities with constant operating costs, termed firm power . Such facilities are nuclear, coal or hydroelectric, while other energy sources such as concentrated solar thermal and geothermal power have the potential to provide firm power. Renewable energy sources, such as solar photovoltaics, wind, wave, and tidal, are, due to their intermittency, not considered to be firm. The remaining or peak power demand,

2783-420: Is more common in urban areas or environmentally sensitive locations. Electrical energy must typically be generated at the same rate at which it is consumed. A sophisticated control system is required to ensure that power generation closely matches demand. If demand exceeds supply, the imbalance can cause generation plant(s) and transmission equipment to automatically disconnect or shut down to prevent damage. In

2904-755: Is more efficient than providing them on a smaller-scale, utility by utility. Today's power industry is far more than a collection of power plants and transmission lines. Maintaining an effective grid requires management of three different but related sets of flows – the flow of energy across the grid; the exchange of information about power flows and the equipment it moves across; and the flow of money between producers, marketers, transmission owners, buyers and others. ISO/RTOs play an essential role in managing and enhancing all three of these flows. As of 2023 there are ten ISO/RTOs operating in North America: Non-RTO transmission organizations: ColumbiaGrid,

3025-611: Is mostly facilitated through bilateral contracts and power purchase agreements . There are nine ISOs within North America: The New Brunswick System Operator ( NBSO ) was dissolved when New Brunswick's new Electricity Act went into effect in October 2013. An RTO is an organization formed at the approval of the Federal Energy Regulatory Commission (FERC). In the areas where an RTO is established, it coordinates, controls and monitors

3146-432: Is often cited as the "Deregulation" of the electric industry. Deregulation, however, is not an accurate term. In actuality, the electricity industry is still regulated, depending on the region, by a series of federal, state, and local agencies and various public commissions. Order No. 888 is substantial in scope. Relative to this article, however, it defined two key elements: In addressing #1 above, Order No. 888 defined

3267-401: Is optimal when the annual cost of energy wasted in resistance is equal to the annual capital charges of providing the conductor. At times of lower interest rates and low commodity costs, Kelvin's law indicates that thicker wires are optimal. Otherwise, thinner conductors are indicated. Since power lines are designed for long-term use, Kelvin's law is used in conjunction with long-term estimates of

3388-617: Is part of electricity delivery , known as the electrical grid . Efficient long-distance transmission of electric power requires high voltages . This reduces the losses produced by strong currents . Transmission lines use either alternating current (AC) or direct current (DC). The voltage level is changed with transformers . The voltage is stepped up for transmission, then reduced for local distribution. A wide area synchronous grid , known as an interconnection in North America, directly connects generators delivering AC power with

3509-406: Is partially dependent on the physical orientation of the lines with respect to each other. Three-phase lines are conventionally strung with phases separated vertically. The mutual inductance seen by a conductor of the phase in the middle of the other two phases is different from the inductance seen on the top/bottom. Unbalanced inductance among the three conductors is problematic because it may force

3630-935: Is produced at a relatively low voltage between about 2.3 kV and 30 kV, depending on the size of the unit. The voltage is then stepped up by the power station transformer to a higher voltage (115 kV to 765 kV AC) for transmission. In the United States, power transmission is, variously, 230 kV to 500 kV, with less than 230 kV or more than 500 kV as exceptions. The Western Interconnection has two primary interchange voltages: 500 kV AC at 60 Hz, and ±500 kV (1,000 kV net) DC from North to South ( Columbia River to Southern California ) and Northeast to Southwest (Utah to Southern California). The 287.5 kV ( Hoover Dam to Los Angeles line, via Victorville ) and 345 kV ( Arizona Public Service (APS) line) are local standards, both of which were implemented before 500 kV became practical. Transmitting electricity at high voltage reduces

3751-472: Is sometimes used in railway electrification systems . DC technology is used for greater efficiency over longer distances, typically hundreds of miles. High-voltage direct current (HVDC) technology is also used in submarine power cables (typically longer than 30 miles (50 km)), and in the interchange of power between grids that are not mutually synchronized. HVDC links stabilize power distribution networks where sudden new loads, or blackouts, in one part of

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3872-489: Is stepped down before the current is sent to smaller substations. Subtransmission circuits are usually arranged in loops so that a single line failure does not stop service to many customers for more than a short time. Federal Energy Regulatory Commission The Federal Energy Regulatory Commission ( FERC ) is an independent agency of the United States government that regulates the interstate transmission and wholesale sale of electricity and natural gas and regulates

3993-666: Is supplied by peaking power plants , which are typically smaller, faster-responding, and higher cost sources, such as combined cycle or combustion turbine plants typically fueled by natural gas. Long-distance transmission (hundreds of kilometers) is cheap and efficient, with costs of US$ 0.005–0.02 per kWh, compared to annual averaged large producer costs of US$ 0.01–0.025 per kWh, retail rates upwards of US$ 0.10 per kWh, and multiples of retail for instantaneous suppliers at unpredicted high demand moments. New York often buys over 1000 MW of low-cost hydropower from Canada. Local sources (even if more expensive and infrequently used) can protect

4114-411: Is swapped at specially designed transposition towers at regular intervals along the line using various transposition schemes . Subtransmission runs at relatively lower voltages. It is uneconomical to connect all distribution substations to the high main transmission voltage, because that equipment is larger and more expensive. Typically, only larger substations connect with this high voltage. Voltage

4235-414: Is the bulk movement of electrical energy from a generating site, such as a power plant , to an electrical substation . The interconnected lines that facilitate this movement form a transmission network . This is distinct from the local wiring between high-voltage substations and customers, which is typically referred to as electric power distribution . The combined transmission and distribution network

4356-465: The I 2 R {\displaystyle I^{2}R} losses are still reduced ten-fold using the higher voltage. While power loss can also be reduced by increasing the wire's conductance (by increasing its cross-sectional area), larger conductors are heavier and more expensive. And since conductance is proportional to cross-sectional area, resistive power loss is only reduced proportionally with increasing cross-sectional area, providing

4477-648: The Bonneville Power Administration , several Washington State public utilities and two investor-owned utilities, wanted an organization with more limited functions and no independent ability to change. ColumbiaGrid performs single-utility transmission planning and expansion via an open and transparent process and is also establishing a multi-system OASIS portal. The former Grid West participants who had argued for an eventual RTO, mainly investor-owned utilities and state representatives from Oregon , Idaho , Montana , Wyoming and Utah , formed

4598-628: The Interstate Commerce Commission to FERC. However, the FERC lost some jurisdiction over the imports and exports of gas and electricity. In 1978, FERC was given additional responsibilities for harmonizing the regulation of wellhead gas sales in both the intrastate and interstate markets. FERC also administered a program to foster new cogeneration and small power production under the Public Utilities Regulatory Policy Act of 1978 , which

4719-665: The New York Independent System Operator (NYISO), and the Independent Sysoperator New England (ISO-NE) were early adopters. California, with the backing of its state and Congressional policymakers, sought approval of a controversial scheme to set up its ISO, called California ISO, based near Sacramento, CA. FERC approved it without changes because California had warned that it would not accept any changes. Enron charged one of its policy analysts to figure out how to make

4840-501: The Open Access Same-time Information System (OASIS) (formerly real-time information networks) and prescribed standards of conduct for its use and access. Subsequent orders provided clarifications, standards and protocols. Where as Order No. 888 provided for an entity (an ISO) to facilitate open access, it was not written with the intent to establish one. FERC Order No. 2000 was: Issued by

4961-610: The U.S. Department of Energy . It is headed by five commissioners who are nominated by the U.S. president and confirmed by the U.S. Senate . There may be no more than three commissioners of one political party serving on the commission at any given time. The responsibilities of FERC include the following: FERC is a large independent regulatory agency , within the United States Department of Energy , that participates in business oversight. The President and Congress do not generally review FERC decisions, but

Regional transmission organization (North America) - Misplaced Pages Continue

5082-498: The electricity market restructuring of the late 1990s. Most are set up as nonprofit corporations using governance models developed by FERC. FERC Orders 888 and 889 defined how independent power producers (IPPs) and power marketers would be allowed fair access to transmission systems, and mandated the implementation of the Open Access Same-Time Information System (OASIS) to facilitate

5203-528: The international electricity exhibition in Frankfurt . A 15 kV transmission line, approximately 175 km long, connected Lauffen on the Neckar and Frankfurt. Transmission voltages increased throughout the 20th century. By 1914, fifty-five transmission systems operating at more than 70 kV were in service. The highest voltage then used was 150 kV. Interconnecting multiple generating plants over

5324-712: The resistance define the impedance ) constitute reactive power flow, which transmits no power to the load. These reactive currents, however, cause extra heating losses. The ratio of real power transmitted to the load to apparent power (the product of a circuit's voltage and current, without reference to phase angle) is the power factor . As reactive current increases, reactive power increases and power factor decreases. For transmission systems with low power factor, losses are higher than for systems with high power factor. Utilities add capacitor banks, reactors and other components (such as phase-shifters ; static VAR compensators ; and flexible AC transmission systems , FACTS) throughout

5445-399: The resistive losses . For example, raising the voltage by a factor of 10 reduces the current by a corresponding factor of 10 and therefore the I 2 R {\displaystyle I^{2}R} losses by a factor of 100, provided the same sized conductors are used in both cases. Even if the conductor size (cross-sectional area) is decreased ten-fold to match the lower current,

5566-506: The skin effect . Resistance increases with temperature. Spiraling, which refers to the way stranded conductors spiral about the center, also contributes to increases in conductor resistance. The skin effect causes the effective resistance to increase at higher AC frequencies. Corona and resistive losses can be estimated using a mathematical model. US transmission and distribution losses were estimated at 6.6% in 1997, 6.5% in 2007 and 5% from 2013 to 2019. In general, losses are estimated from

5687-405: The vertically integrated electric utility with a transmission system designed to serve its own customers worked extremely well for decades. As dependence on a reliable supply of electricity grew and electricity was transported over increasingly greater distances, power pools were formed and interconnections developed. Transactions were relatively few and generally planned well in advance. In

5808-528: The 1884 International Exhibition of Electricity in Turin, Italy . It was powered by a 2 kV, 130 Hz Siemens & Halske alternator and featured several Gaulard transformers with primary windings connected in series, which fed incandescent lamps. The system proved the feasibility of AC electric power transmission over long distances. The first commercial AC distribution system entered service in 1885 in via dei Cerchi, Rome, Italy , for public lighting. It

5929-519: The AC grid. These stopgaps were slowly replaced as older systems were retired or upgraded. The first transmission of single-phase alternating current using high voltage came in Oregon in 1890 when power was delivered from a hydroelectric plant at Willamette Falls to the city of Portland 14 miles (23 km) down river. The first three-phase alternating current using high voltage took place in 1891 during

6050-689: The Commission..., Plaintiffs' recourse lies with their legislative representatives." In New Jersey, the FERC approval of the PennEast Pipeline was met with widespread criticism by environmental groups, which called the decision highly partisan. "FERC has once again demonstrated its tremendous bias for, and partnership with, the pipeline industry," said Maya van Rossum, leader of the Delaware Riverkeeper Network. Doug O'Malley, president of Environment New Jersey, called

6171-478: The D.C. Circuit has provided additional guidance concerning Commission procedures, stating that in one case FERC failed to consider the cumulative environmental impact of four projects that had been separately proposed by the same pipeline. The D.C. Circuit held that the projects were not financially independent and were "a single pipeline" that was "linear and physically interdependent," so the cumulative environmental impacts should have been considered concurrently. In

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6292-407: The Delaware Riverkeeper Network and Maya Van Rossum's claim that FERC has an incentive to award pipeline certificates because it collects its operating expenses from regulated parties. Upholding a lower court ruling, the D.C. Circuit also rejected the Delaware Riverkeeper Network's challenge to FERC's use of tolling orders to meet its statutory deadlines for acting on rehearing applications. However,

6413-439: The FERC approval of the pipeline a "disaster." David Pringle, state campaign director of Clean Water Action and 2018 Congressional candidate, suggested the FERC was serving a partisan interest over the interests of the people of New Jersey, suggesting "The FERC needs to remember it works for the people of the United States not PennEast." These criticisms were unfounded as the D.C. Circuit Court of Appeals on July 10, 2018, rejected

6534-585: The FERC for approval, and meet 4 minimum characteristics and 8 minimum functions: Only electric utilities that are located within the United States fall under FERC authority, but a larger organization called the North American Electric Reliability Corporation (NERC) overlays the entire FERC footprint and also includes a Mexican utility and several Canadian utilities. As such, international reciprocity

6655-454: The FERC on December 29, 1999, Order No. 2000 codified what it means to be an RTO including its minimum characteristics, functions and ratemaking policy. The order also stated its commitment toward open architecture with a stated goal that an RTO "...be designed so that they can evolve over time." The order still, however, does not mandate that a new entity called an RTO be created, nor does it mandate that an entity call itself an RTO to comply with

6776-520: The FERC's order. An ISO is an organization formed at the direction or recommendation of the Federal Energy Regulatory Commission (FERC) . In the areas where an ISO is established, it coordinates, controls and monitors the operation of the electrical power system, usually within a single US State, but sometimes encompassing multiple states. Similar to an RTO, the primary difference is that ISOs either do not meet

6897-411: The FERC, for the right to establish designs of independent system operations. Through negotiation, collaboration and legal challenges, the first ISOs to emerge included California ISO, PJM Interconnection, New York ISO and New England ISO. Each proposed a slightly different market design according to their collaborative results. In order to facilitate competitive wholesale markets, Order No. 888 specified

7018-559: The Northern Tier Transmission Group (NTTG), a nascent effort open to evolution but initially focused on inexpensive and relatively easy improvements to grid management, including area control error (ACE) diversity interchange, currently underway; transparent methodologies for calculating available transmission capacity; and planning, as required by FERC Order 890. International: General: Electric power transmission Electric power transmission

7139-570: The RTO, when a state public utility commission asserts that its retail ratepayers (under state regulation) will be impacted by wholesale-market stakeholder decisions and reforms (under federal-level regulation). In contrast, prior to the formation of the NYISO in 1999 in New York, wholesale energy prices were set within a utility's state rate case proceeding. Examples of contentious issues in New York include

7260-624: The Secretary [of Energy] or any officer or employee of the Department". The Department of Energy can, however, participate in FERC proceedings as a third party. FERC has promoted voluntary formation of regional transmission organizations (RTOs) and Independent System Operators (ISOs) to eliminate the potential for undue discrimination in access to the electric grid ; it has made key decisions expanding its own power in regional and interregional transmission planning and cost allocation through

7381-646: The U.S. It is largely responsible for permitting construction of a large network of interstate natural gas pipelines. FERC also works closely with the United States Coast Guard to review the safety, security, and environmental impacts of proposed LNG terminals and associated shipping. FERC is composed of up to five commissioners who are appointed by the President and confirmed by the Senate to staggered five-year terms. The President appoints one of

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7502-597: The U.S. Supreme Court. If the agency were to adopt the path [suggested by these critics], FERC's decisions would routinely be overturned by the federal courts." The United States District Court for the District of Columbia also dismissed a case involving allegations of structural bias on the part of FERC. The plaintiffs contended that the Omnibus Budget Act of 1986 funding mechanism requires the commission to recover its budget through proportional charges on regulated entities, therefore making FERC biased in favor of

7623-484: The United States where ISOs do not exist. Consequently, the utilities do not engage in wholesale power markets. The Pacific Northwest, and states east of California and west of the Dakotas, Nebraska, Kansas and Texas largely do not participate. The majority of Southeastern states do not participate in wholesale markets. While these regions must conform to open access as mandated by FERC, the power exchanges between utilities

7744-401: The ability to link all the loads. These included single phase AC systems, poly-phase AC systems, low voltage incandescent lighting, high-voltage arc lighting, and existing DC motors in factories and street cars. In what became a universal system, these technological differences were temporarily bridged via the rotary converters and motor-generators that allowed the legacy systems to connect to

7865-451: The agency had the authority to regulate demand response transactions. On July 28, 2023, the Federal Energy Regulatory Commission issued Order No. 2023, which regulates the interconnection process that ties renewables projects into the large-scale grid. Among other provisions, the rule requires transmission planners to consolidate projects into 'clusters' for regulatory approval purposes on a 'first-ready, first-served' basis that prioritizes

7986-421: The commission's use of a separate environmental assessment when it reasoned that the projects in dispute were "unrelated" and did not depend on one another for their justification. This guidance has allowed FERC to address additional claims of improper segmentation. FERC's leaders have stressed many times since the onset of the increased activism that the proper way to oppose a proposed new infrastructure project

8107-421: The commissioners to be the chairman of FERC, the administrative head of the agency. FERC is a bipartisan body; no more than three commissioners may be of the same political party. Commissioners may continue in office past the end of their term if a successor has not yet been confirmed, up to the end of the current session of Congress. The commissioners are: The Federal Power Commission (FPC), which preceded FERC,

8228-460: The concept of electrical grid reliability . The delineation between an ISO and an RTO is subtle to some and quite specific to others, as the similarities in the table below illustrate: In short, an ISO operates a region's electricity grid, administers the region's wholesale electricity markets, and provides reliability planning for the region's bulk electricity system. Today's RTOs do the same thing with an added component of greater responsibility for

8349-470: The continued reliability of a system unequaled anywhere else, and 3) multiple transmission charges that will not negate the savings to the end-use customer. Critics of RTOs counter that the wholesale electricity market as operated through the RTOs is in fact raising prices beyond what would obtain in a truly competitive situation, and that the organizations themselves add a needless layer of bureaucracy. While

8470-542: The country facing transmission constraints." In 2010, FERC issued Order No. 1000, which required RTOs to create regional transmission plans and identify transmission needs based on public policy. Cost allocation reforms were included, possibly to reduce barriers faced by non incumbent transmission developers. In February 2018, FERC issued Order No. 841, which required wholesale markets to open up to individual storage installations, regardless of interconnection point (transmission, distribution or behind-the-meter). The Order

8591-579: The creation of regional transmission organizations in the United States. This would impact existing electric power pools by rebranding themselves as independent transmission operators. Electric utilities in some regions began to spin off their generation units as separate companies that would compete in a wholesale electric market administered by the RTOs. Once FERC had created the framework for Regional Transmission Organizations with Order No. 888, several such RTOs were approved. The pre-existing multi-state power pool called PJM (Pennsylvania, Jersey, Maryland),

8712-557: The decisions are reviewable by the federal courts . FERC is self-funding, in that Congress sets its budget through annual and supplemental appropriations and FERC is authorized to raise revenue to reimburse the United States Treasury for its appropriations, through annual charges to the natural gas, oil, and electric industries it regulates. FERC is independent of the Department of Energy political structure because FERC activities "shall not be subject to further view by

8833-551: The discrepancy between power produced (as reported by power plants) and power sold; the difference constitutes transmission and distribution losses, assuming no utility theft occurs. As of 1980, the longest cost-effective distance for DC transmission was 7,000 kilometres (4,300 miles). For AC it was 4,000 kilometres (2,500 miles), though US transmission lines are substantially shorter. In any AC line, conductor inductance and capacitance can be significant. Currents that flow solely in reaction to these properties, (which together with

8954-645: The distribution level or behind-the-meter. A United States courts of appeals court (the D.C. Circuit) issued an order in July 2020 that upheld Order 841 and dismissed the petitioners' complaints. FERC issued Order No. 2222 on September 17, 2020, enabling distributed energy resources such as batteries and demand response to participate in regional wholesale electricity markets. Market operators submitted initial compliance plans by early 2022. The Supreme Court had ruled in 2016 in FERC v. Electric Power Supply Ass'n that

9075-407: The electricity and natural gas markets. The Energy Policy Act of 2005 also gave FERC additional responsibilities and authority. Among the many provisions of the law, FERC was given what is known as "backstop" siting authority which allows FERC to overrule any denial of transmission projects by a state within established corridors of transmission congestion "to expand transmission in limited regions of

9196-433: The entire FERC footprint and includes a Mexican utility and several Canadian utilities. As such, international reciprocity is commonplace, and rules or recommendations introduced by FERC often are voluntarily accepted by NERC members outside of FERC's jurisdiction. Therefore, one Canadian Province is a member of a US-based RTO, while two others function as an Electric System Operator (ESO), an organization essentially equal to

9317-887: The entire generation, transmission, and distribution assets. Because these companies controlled the retail delivery of the energy from generation through their own power lines, consumers had little to no choice regarding whose electricity they were buying. In economic terms, this structure constituted an impediment for new providers who would want to generate power, move energy, or provide retail electricity to individual consumers. Order No. 888 addressed "Promoting Wholesale Competition Through Open Access Non-discriminatory Transmission Services by Public Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities." and Order No. 889 added and amended existing rules "...establishing and governing an Open Access Same-time Information System (OASIS) (formerly real-time information networks) and prescribing standards of conduct." Order No. 888

9438-547: The entities it regulates creates bias in favor of the issuance of pipeline certificates. Some of the critics have disrupted several regular open meetings of the Commission and staged a couple of week-long blockades of FERC's headquarters in Washington, D.C., to make their points. "Pipelines are facing unprecedented opposition," Commissioner LaFleur remarked to the National Press Club in a 2015 speech. "We have

9559-430: The extent of federal power and influence within the state. The planning and siting of public policy and renewable power plants and merchant transmission lines can be contentious, because the planning process must proceed through both entities. For example, in New York State, any large (more than 20 MW for the NYISO or 2 MW for the state Siting Committee) generation or merchant transmission facility must proceed through both

9680-485: The fair handling of transactions between electric power transmission suppliers and their customers. TSOs in Europe cross state and provincial borders like RTOs. RTOs were created by the Federal Energy Regulatory Commission (FERC) as a way to handle the challenges associated with the operation of multiple interconnected independent power supply companies. FERC describes this as a voluntary system. The traditional model of

9801-582: The first practical series AC transformer in 1885. Working with the support of George Westinghouse , in 1886 he demonstrated a transformer-based AC lighting system in Great Barrington, Massachusetts . It was powered by a steam engine-driven 500 V Siemens generator. Voltage was stepped down to 100 volts using the Stanley transformer to power incandescent lamps at 23 businesses over 4,000 feet (1,200 m). This practical demonstration of

9922-716: The following November, allows state regulators even more opportunities to provide input on interstate grid projects, adds six months to the cost allocation negotiating process, and gives utilities more leeway to forecast additional needs scenarios. The latter order affirms FERC's siting authority in National Interest Electric Transmission Corridors if a state regulatory agency denies any of its own siting responsibility thereof. The order creates an Applicant Code of Conduct to encourage proper landowner outreach, and adds air quality, environmental justice and tribal engagement reports to

10043-409: The fraction of energy lost to Joule heating , which varies by conductor type, the current, and the transmission distance. For example, a 100 miles (160 km) span at 765 kV carrying 1000 MW of power can have losses of 0.5% to 1.1%. A 345 kV line carrying the same load across the same distance has losses of 4.2%. For a given amount of power, a higher voltage reduces the current and thus

10164-458: The fundamental purpose of an ISO to "…operate the transmission systems of public utilities in a manner that is independent of any business interest in sales or purchases of electric power by those utilities." The order did not mandate or require the establishment of ISOs. Rather, in an attempt to comply with the FERC's order, groups of participants (or "Power Pools" composed of generators, transmission providers and utilities) partnered, and proposed to

10285-490: The importance on remedying what it terms as "undue discrimination" at the forefront. It is important to note that Order No. 888 was not met without objection among the public, academics and industry participants. Requests for rehearing and/or clarification were filed by 137 entities after the order's issuance. The majority agreed with the FERC's assertion for the need to harness the benefits of competitive electricity markets. Order No. 889 amended rules establishing and governing

10406-447: The industry from which it gets its funding. But in an order issued March 22, 2017, the court said the plain language of the statute indicates that FERC does not have control over its own budget. "The Commission's budget cannot be increased by approving pipelines; rather, [the statute] requires the Commission to make adjustments to 'eliminate any overrecovery or underrecovery.' If Plaintiffs are unhappy with Congress's chosen appropriations to

10527-426: The issue ended with the 2005 Energy Bill ( Energy Policy Act of 2005 ) which was passed with approval of Democrats and Republicans. The Energy Policy Act of 2005 expanded FERC's authority to protect the reliability and cybersecurity of the bulk power system through the establishment and enforcement of mandatory standards, as well as greatly expanding FERC authority to impose civil penalties on entities that manipulate

10648-759: The landmark Order Nos. 1000, 1920, 1977, and 2023. FERC investigated the alleged manipulation of electricity market by Enron and other energy companies, and their role in the California electricity crisis . FERC has collected more than $ 6.3 billion from California electric market participants through settlements. Since passage of the Energy Policy Act of 2005 , FERC has imposed, through settlements and orders, more than $ 1 billion in civil penalties and disgorgement of unjust profits to address violations of its anti- market manipulation and other rules. FERC regulates approximately 1,600 hydroelectric projects in

10769-516: The last decade of the 20th century, some policy makers and academics projected that the electrical power industry would ultimately experience deregulation . RTOs were conceived as a way to handle the vastly increased number of transactions that take place in a competitive environment. About a dozen states decided to deregulate, but some pulled back following the California electricity crisis of 2000 and 2001. RTOs ensure three key free marketer drivers: 1) open access and non-discriminatory services, 2)

10890-406: The list of requirements for project applicants. FERC has been subject to criticism and increasing activism by people from communities affected by its decisions approving pipeline and related projects. They contend that FERC "blithely greenlights too many pipelines, export terminals and other gas infrastructure" and that FERC's structure in which it recovers its annual operating costs directly from

11011-524: The load instantaneously to keep supply and demand for electricity in balance. The grid operators forecast load and schedule generation to assure that sufficient generation and back-up power is available in case demand rises or a power plant or power line is lost. They also operate wholesale electricity markets that enable participants to buy and sell electricity on a day-ahead or a real-time spot market basis. These markets provide electricity suppliers with more options for meeting consumer needs for power at

11132-432: The lowest possible cost. ISO/RTOs provide non-discriminatory transmission access, facilitating competition among wholesale suppliers to improve transmission service and provide fair electricity prices. Across large regions, they schedule the use of transmission lines; manage the interconnection of new generation and monitor the markets to ensure fairness and neutrality for all participants. Providing these services regionally

11253-400: The maximum reliable capacity of each line (ordinarily less than its physical or thermal limit) to ensure that spare capacity is available in the event of a failure in another part of the network. High-voltage overhead conductors are not covered by insulation. The conductor material is nearly always an aluminum alloy, formed of several strands and possibly reinforced with steel strands. Copper

11374-451: The middle line to carry a disproportionate amount of the total power transmitted. Similarly, an unbalanced load may occur if one line is consistently closest to the ground and operates at a lower impedance. Because of this phenomenon, conductors must be periodically transposed along the line so that each phase sees equal time in each relative position to balance out the mutual inductance seen by all three phases. To accomplish this, line position

11495-512: The minimum requirements specified by FERC to hold the designation of RTO or that the ISO has not petitioned FERC for the status. Electric utilities that are located within the United States and engage in interstate commerce fall under FERC authority. Not all utilities are members of ISOs. All utilities and ISOs are responsible to meet the compliance of a larger organization called the North American Electric Reliability Corporation (NERC) , which overlays

11616-607: The most of the flawed rules put in place for the California electricity market. Enron had success with its fraudulent market transactions. In 2001, the George W. Bush administration sought to give the authority of eminent domain to FERC to circumvent state and local bureaucratic processes which often slowed the siting of new transmission projects. This expansion of power was most fiercely opposed by Bush's own Republican party as being an expansion of federal power. Legal battles over

11737-534: The most well-studied and fully financed projects, forecast advanced technologies, and allow for multiple projects to share a new single interconnection point. It also "imposes firm deadlines and penalties if transmission providers fail to complete interconnection studies on time". On May 13, 2024, FERC issued Order Nos. 1920 and 1977. The former order requires utilities to plan 20 years in advance to anticipate future regional (though not interregional) transmission needs, with five-year updates, and to cooperate in creating

11858-474: The operation of the electrical power system, usually within a single US State, but sometimes encompassing multiple states. The official definition for an RTO: "An entity that is independent from all generation and power marketing interests and has exclusive responsibility for grid operations, short-term reliability, and transmission service within a region." The designation of an RTO is largely one of scope. An organization wanting to achieve RTO status must petition

11979-459: The original intention was for the RTOs to remain an independent, non-profit organization and were given nearly autonomous control of their service area. The primary committees, and a majority of participant committees are almost entirely represented by investor owned utilities and have eroded States power and Federal authority. The RTO concept provides for separation of generation and transmission and elimination of pancaked rates, and it encourages

12100-543: The planning process of the NYISO, which operates on a two-year cycle at minimum with an inclusive class year pool of new projects evaluated simultaneously, and the siting process of the state Board on Electric Siting and the Environment. Prior to the formation of the NYISO, the planning process was determined mostly by the state siting board (although the utilities' power pool might have had its own closed door planning session) and large generation projects were developed by

12221-508: The power grid for non-utility firms, enhance the reliability of the transmission system and operate wholesale electricity markets. Today, seven of these grid operators, either independent system operators (ISOs) or RTOs, coordinate the power grid to ensure the reliable delivery of two-thirds of the electricity used in the United States to two-thirds of its population. Most are overseen by FERC. ISOs and RTOs coordinate generation and transmission across wide geographic regions, matching generation to

12342-528: The power supply from weather and other disasters that can disconnect distant suppliers. Hydro and wind sources cannot be moved closer to big cities, and solar costs are lowest in remote areas where local power needs are nominal. Connection costs can determine whether any particular renewable alternative is economically realistic. Costs can be prohibitive for transmission lines, but high capacity, long distance super grid transmission network costs could be recovered with modest usage fees. At power stations , power

12463-467: The price of copper and aluminum as well as interest rates. Higher voltage is achieved in AC circuits by using a step-up transformer . High-voltage direct current (HVDC) systems require relatively costly conversion equipment that may be economically justified for particular projects such as submarine cables and longer distance high capacity point-to-point transmission. HVDC is necessary for sending energy between unsynchronized grids. A transmission grid

12584-514: The price of generating capacity is high, energy demand is variable, making it often cheaper to import needed power than to generate it locally. Because loads often rise and fall together across large areas, power often comes from distant sources. Because of the economic benefits of load sharing, wide area transmission grids may span countries and even continents. Interconnections between producers and consumers enables power to flow even if some links are inoperative. The slowly varying portion of demand

12705-414: The prices of interstate transport of petroleum by pipeline . FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects. FERC was created by the U.S. Congress in 1977 in the aftermath of the 1973 oil crisis . FERC is an independent agency, despite being part of

12826-413: The record" hearings for DOE. As a result, DOE does not have any administrative law judges . As a further protection, when the Department of Energy proposes a rule, it must refer the proposal to FERC, and FERC can take over the proceeding if FERC determines that the rulemaking "may significantly affect" matters in its jurisdiction. The DOE Act also transferred the regulation of interstate oil pipelines from

12947-559: The same relative frequency to many consumers. North America has four major interconnections: Western , Eastern , Quebec and Texas . One grid connects most of continental Europe . Historically, transmission and distribution lines were often owned by the same company, but starting in the 1990s, many countries liberalized the regulation of the electricity market in ways that led to separate companies handling transmission and distribution. Most North American transmission lines are high-voltage three-phase AC, although single phase AC

13068-628: The scarcity of polyphase power systems needed to power them. In the late 1880s and early 1890s smaller electric companies merged into larger corporations such as Ganz and AEG in Europe and General Electric and Westinghouse Electric in the US. These companies developed AC systems, but the technical difference between direct and alternating current systems required a much longer technical merger. Alternating current's economies of scale with large generating plants and long-distance transmission slowly added

13189-409: The system help to compensate for the reactive power flow, reduce the losses in power transmission and stabilize system voltages. These measures are collectively called 'reactive support'. Current flowing through transmission lines induces a magnetic field that surrounds the lines of each phase and affects the inductance of the surrounding conductors of other phases. The conductors' mutual inductance

13310-434: The transmission network, as established by the FERC. In April 1996, the Federal Energy Regulatory Commission (FERC) issued two orders that changed the landscape of how electricity is generated, transmitted, and distributed throughout the North America. Prior to these rulings, generated power and the subsequent energy provided to customers by local service providers was owned and controlled by single entities who often owned

13431-460: The unbundling of a utility's operations separating generation and transmission and distribution. In addressing #2 above, the original order (and subsequent clarification by the FERC) allows utilities, under certain defined circumstances, to seek extra-contractual recovery of stranded costs. The FERC continues to receive rehearing petitions regarding stranded cost recovery as it has clearly placed

13552-422: The utilities themselves. The dual planning process provides an opportunity for other market participants to drag out the process legally, not including the other state and/or federal environmental, trade (if an international connection with Canada is requested), and local certification and regulation processes that need to be met. The controversy similarly applies to various electric wholesale-market issues within

13673-500: The worst case, this may lead to a cascading series of shutdowns and a major regional blackout . The US Northeast faced blackouts in 1965 , 1977 , 2003 , and major blackouts in other US regions in 1996 and 2011 . Electric transmission networks are interconnected into regional, national, and even continent-wide networks to reduce the risk of such a failure by providing multiple redundant , alternative routes for power to flow should such shutdowns occur. Transmission companies determine

13794-599: Was challenged in court by the state public utility commissions via the National Association of Regulatory Utility Commissioners (NARUC) , the American Public Power Association , and others who claimed that FERC overstepped its jurisdiction by regulating how local electric distribution and behind-the-meter facilities are administered, i.e., in not providing an opt out of wholesale market access for energy storage facilities located at

13915-651: Was established by Congress in 1920 to allow cabinet members to coordinate federal hydropower development. In 1935, the FPC was transformed into an independent regulatory agency with five members nominated by the President and confirmed by the Senate . The FPC was authorized to regulate both hydropower and interstate electricity. In 1938, the Natural Gas Act gave FPC jurisdiction over interstate natural gas pipelines and wholesale sales. In 1942, this jurisdiction

14036-516: Was expanded to cover the licensing of more natural gas facilities. In 1954, the Supreme Court decision in Phillips Petroleum Co. v. Wisconsin extended FPC jurisdiction over all wellhead sales of natural gas in interstate commerce. In response to the 1973 oil crisis, Congress passed the Department of Energy Organization Act in 1977 , to consolidate various energy-related agencies into a Department of Energy . Congress insisted that

14157-452: Was initially transmitted at the same voltage used by lighting and mechanical loads. This restricted the distance between generating plant and loads. In 1882, DC voltage could not easily be increased for long-distance transmission. Different classes of loads (for example, lighting, fixed motors, and traction/railway systems) required different voltages, and so used different generators and circuits. Thus, generators were sited near their loads,

14278-690: Was passed as part of the National Energy Act of 1978 . The National Energy Act included the Natural Gas Policy Act of 1978 , which reduced the scope of federal price regulation, to bring greater competition to both the natural gas and electric industry. In 1989, Congress ended federal regulation of wellhead natural gas prices, with the passage of the Natural Gas Wellhead Decontrol Act of 1989 . In 1996, FERC issued Order No. 888, which spurred

14399-648: Was powered by two Siemens & Halske alternators rated 30 hp (22 kW), 2 kV at 120 Hz and used 19 km of cables and 200 parallel-connected 2 kV to 20 V step-down transformers provided with a closed magnetic circuit, one for each lamp. A few months later it was followed by the first British AC system, serving Grosvenor Gallery . It also featured Siemens alternators and 2.4 kV to 100 V step-down transformers – one per user – with shunt-connected primaries. Working to improve what he considered an impractical Gaulard-Gibbs design, electrical engineer William Stanley, Jr. developed

14520-464: Was sometimes used for overhead transmission, but aluminum is lighter, reduces yields only marginally and costs much less. Overhead conductors are supplied by several companies. Conductor material and shapes are regularly improved to increase capacity. Conductor sizes range from 12 mm (#6 American wire gauge ) to 750 mm (1,590,000  circular mils area), with varying resistance and current-carrying capacity . For large conductors (more than

14641-426: Was spurred by World War I , when large electrical generating plants were built by governments to power munitions factories. These networks use components such as power lines, cables, circuit breakers , switches and transformers . The transmission network is usually administered on a regional basis by an entity such as a regional transmission organization or transmission system operator . Transmission efficiency

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