**GAO-08-987**                      Published: Sep 22, 2008. Publicly Released: Sep 26, 2008.                  

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## Highlights

In 1999, as a part of federal efforts to restructure the electricity industry, the Federal Energy Regulatory Commission (FERC) began encouraging the voluntary formation of Regional Transmission Organizations (RTO)--independent entities to manage regional networks of electric transmission lines. FERC oversees six RTOs that cover part or all of 35 states and D.C. and serve over half of U.S. electricity demand. As electricity prices increase, stakeholders-- organizations and individuals with financial and regulatory interest in the electricity industry--have voiced concerns about RTO benefits and how RTO expenses and decisions influence electricity prices. GAO was asked to review (1) RTO expenses and key investments in property, plant, and equipment from 2002 to 2006, the most current data available; (2) how RTOs and FERC review RTO expenses and decisions that may affect electricity prices; and (3) the extent to which there is consensus about RTO benefits. To do so, GAO reviewed documentation and data and spoke with FERC officials and experts.

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## Topics

Energy

Data integrityElectric energyElectric power generationElectric power transmissionElectric utilitiesElectricity restructuringEnergy costsEvaluation criteriaEvaluation methodsFederal regulationsInformation managementInvestmentsMission critical informationPerformance managementPerformance measuresPrices and pricingRegulatory agenciesReporting requirementsRisk managementStandardsBenefit-cost tracking