Electronic Bulletin, October 2008, No. 6

Electronic Bulletin
Public Affairs Section, U.S. Consulate General, Hong Kong
October 2008, No. 6

(The Electronic Bulletin is an information service published by the Public Affairs Section of the U.S. Consulate General and provided to subscribers by e-mail and fax. Except for the U.S. Government sites, the opinions expressed on the Internet sites listed here do not necessarily represent the views of the U.S. Government.)

Electricity Restructuring: FERC Could Take Additional Steps to Analyze Regional Transmission Organizations' Benefits and Performance
United States Government Accountability Office
GAO-08-987, September 22, 2008

The report is available online. (PDF file)*

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In 1999, as a part of federal efforts to restructure the electricity industry, the Federal Energy Regulatory Commission (FERC) began encouraging the voluntary formation of Regional Transmission Organizations (RTO)--independent entities to manage regional networks of electric transmission lines. FERC oversees six RTOs that cover part or all of 35 states and D.C. and serve over half of U.S. electricity demand. As electricity prices increase, stakeholders--organizations and individuals with financial and regulatory interest in the electricity industry--have voiced concerns about RTO benefits and how RTO expenses and decisions influence electricity prices.

GAO was asked to review (1) RTO expenses and key investments in property, plant, and equipment from 2002 to 2006, the most current data available; (2) how RTOs and FERC review RTO expenses and decisions that may affect electricity prices; and (3) the extent to which there is consensus about RTO benefits. To do so, GAO reviewed documentation and data and spoke with FERC officials and experts.

GAO recommends that FERC develop an approach for regularly reviewing RTO budgets and annual financial reports, and develop and report on standardized measures that track RTOs' performance.

Subject: U.S. Economy