Advanced Energy Perspectives

Record-breaking heat waves and drought in the western U.S. are threatening the reliability of electric power, as electricity use is up and hydropower and energy imports from neighboring states are down. In California, Flex Alerts – asking consumers to conserve energy to relieve grid stress – are becoming a regular occurrence. And these weather patterns are no longer unusual: “This is really the new normal,” AEE policy director Leah Rubin Shen recently told Fox 40 of Sacramento. “These weather events are becoming more and more common and more and more frequent.” The energy crisis that results points to the need for a regional transmission organization (RTO) in the west, connected with a more expansive transmission network, to move power – especially renewable energy – where it’s needed, when it’s needed, at lowest cost.

It’s no secret that Fortune 500 companies want more advanced energy. Over the past five years, these companies have signed contracts for more than 24 GW of large-scale renewable energy, pursued thousands of onsite solar installations, and embraced newer technologies like battery storage. The role of organized competitive wholesale markets as enablers of advanced energy procurement by large buyers is, however, a bit of a trade secret. Which is too bad, because policymakers could meet the needs of businesses and accelerate the transition to a cleaner economy all at once by expanding and reforming these markets. Here’s how.

One of the simplest concepts governing the electric power system for more than half the country – competitive wholesale markets deliver reliable power at the best price for customers – is also among the most complex in practice. Our nation’s system of  Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) proves that. Navigating the world of RTOs and ISOs can be challenging, but participating in the markets they manage is critical to the success of advanced energy companies. AEE’s recent webinar, “Everything You Wanted to Know about RTOs But Never Could – Until Now,” moderated by AEE General Counsel and Managing Director Jeff Dennis, dug into how RTOs and ISOs operate and how to utilize AEE’s PowerSuite platform to track, navigate, and participate in RTO/ISO processes.