Last week, staff to Sens. Joseph Lieberman (I-CT) and Susan Collins (R-ME) spoke with key staff at the General Accountability Office (GAO) on the agency's plans to move forward on an investigation of Regional Transmission Organization (RTO) markets and whether they are bringing benefits to consumers. GAO indicated it would develop a "scope of work" for its review and report back to the Senate offices in January/February. If the Senators are comfortable with that scope of work, GAO will then commence work on the actual study, with a tentative completion date of September 2008.
Lieberman and Collins, in their respective capacities as Chairman and Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, requested that the GAO launch an investigation into the costs, structure, and operations of the nation's RTOs and Independent System Operators (ISOs). In their May 2007 letter, the Senators said "RTOs and (ISOs), established in response to a 2000 FERC order, were supposed to increase efficiency and reduce the cost of wholesale electricity." The letter requested GAO to determine whether RTOs/ISOs are having that intended outcome.
GAO has also contacted staff at the American Public Power Association (APPA) and the National Rural Electric Cooperative Association (NRECA) to gather information. Morgan Meguire will keep members informed as this effort moves forward.