A coalition of consumer advocates, pro-market groups, and others sent a letter on July 8, 2021, requesting that Congress direct the Government Accountability Office (GAO) or other independent oversight organization to conduct a first-of-its-kind cost analysis of organized power markets.[1] The coalition is spearheaded by the Electricity Consumers Resource Council (ELCON) and includes groups such as Public Citizen, Energy Choice Coalition, and R Street Institute. In 1999, the Federal Energy Regulatory Commission (FERC) encouraged participation in organized markets under Order 1000. As a result, about two-thirds of the U.S. by area is now served by Regional Transmission Organizations and Independent System Operators (collectively RTOs). In their letter, coalition members expressed concern that while FERC has promoted RTOs based on the idea that they benefit customers, the commission has not initiated a full-scale, independent study to ensure that RTOs provide reliable and affordable electricity. The coalition is requesting an analysis of the cost impacts of federal policy on market structure, particularly the net benefits to retail consumers of forming RTOs. The study should examine how existing RTO markets have impacted the cost of electricity for retail consumers. The coalition also asked that the study explore the impacts of wholesale market structures on reliability and develop a set of best practices for RTO expansion.

[1] https://elcon.org/independent-study-of-the-cost-of-electricity/