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Expert Insight

Are Wholesale Electricity Markets Working?

Author(s): Alex Gilbert
Cofounder
Spark Library
Date: April 4, 2016 at 12:00 PM

In the last twenty years, the United States has been in the process of restructuring its electricity generation. Today, wholesale electricity markets are controlled by regional transmission organizations (RTO) and independent system operators (ISO) that direct electric grid operations and run day-ahead and real-time pricing. These grid operators, which are regulated by FERC, now oversee more than two-thirds of America‚Äôs bulk power system and are meant to create value by improving system reliability and lowering electricity costs. However, there are serious questions about whether RTOs/ISOs are operating efficiently. Areas of concern include 1) whether reliability is improving and costs are… [more]

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