Statement of Support by Chairman Gary Gensler on Final Order Related to Certain RTO and ISO Electricity Transactions
March 28, 2013
I support the final order regarding specified electric energy-related transactions entered into on markets administered by regional transmission organizations (RTOs) or independent system operators (ISOs).
Congress authorized that these transactions be exempt from certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act as they are subject to extensive regulatory oversight by the Federal Energy Regulatory Commission (FERC) or, in one instance, the Public Utility Commission of Texas (PUCT).
This final order responds to a petition filed by a group of RTOs and ISOs and has benefitted from public input.
These entities were established for the purpose of providing affordable, reliable electric energy to consumers within their geographic region. In addition, these markets administered by RTOs and ISOs are central to FERC and PUCT’s regulatory missions to oversee wholesale sales and transmission of electric energy.
The scope of the final order is carefully tailored to four categories of transactions – financial transmission rights; energy transactions; forward capacity transactions; and reserve or regulation transactions, which are offered or entered into a market administered by one of the requesting RTOs or ISOs. This exemption is conditioned on, among other things, each of these transactions being inextricably linked to the physical delivery of electric energy.
Last Updated: March 28, 2013