New ODOE Study Outlines Opportunities and Challenges of a Regional Transmission Organization

The Oregon Department of Energy published a new study this week outlining the opportunities, challenges, and barriers of a potential Regional Transmission Organization, or RTO, in Oregon and the Northwest.

An RTO is an independent, nonprofit organization designed to ensure reliability of the bulk power system, and to optimize supply and demand for wholesale electricity. One of the primary functions of an RTO is operation of the electric transmission grid across a large, often multi-state area. RTOs can influence how energy is bought and sold to meet customer demand, how to ensure resources are adequate to serve future demand, and how utilities create sufficient transmission to maintain reliable delivery of energy to customers.

Earlier this year, the Oregon Legislature directed ODOE to develop the study, which includes a literature review of recent relevant studies and outlines helpful stakeholder expertise and feedback the agency heard throughout report development.

An RTO Advisory Committee and other public comments provided valuable feedback and expertise for the report, including: identifying a need for balancing competing interests; discussing how an RTO could economically benefit Oregon retail customers as long as barriers are addressed; noting that an RTO could benefit the transmission system, but wouldn’t necessarily solve cost, siting, and permitting challenges; and acknowledging that RTOs typically haven’t addressed equity, environmental justice, and resilience issues, but could during RTO design. Stakeholders provided input on several other areas – dive into the report to learn more.

ODOE’s report doesn’t include a specific recommendation for RTO formation. Rather, it’s designed to help Oregon’s policymakers, utilities, and other stakeholders better understand how an RTO could affect our energy landscape. From the rapid deployment of wind and solar generation, to the retirement of coal plants and the adoption of aggressive decarbonization policies, the electric sector is undergoing significant transformation. A potential RTO is another path leaders can consider as we build on the current momentum to explore increased regional collaboration and coordination in the electric sector.

The study is available on ODOE’s website.