What is an RTO?

RTO is a term used by FERC to describe a new, large-scale (primarily multi-state) electric transmission system operator. The fundamental purpose of an RTO is to ensure the efficient and reliable delivery of power supplies by removing transmission barriers between power sellers and buyers. RTOs also will improve management of congestion in trans-mission facilities; eliminate opportunities for transmission owners to engage in discriminatory practices; improve market performance; and increase the economic movement of power by eliminating "pancaked" rates (multiple "shipping" prices that customers pay when electricity travels through several utilities rather than within one RTO).