A proposal for an Inter-regional Transmission Organization (IRTO)

Summary form only given as follows. In this paper we briefly present a concept of a for-profit-based Inter-regional Transmission Organization for managing requests for transmission delivery in a multi-market energy environment. This would be one possible design, with specific implementation and clearing mechanisms critical for implementing transactions that take place in a truly open-access environment. The concept has sound technical foundation, and, at the same time, provides trading of transmission service in a demand/supply type manner. The IRTO is ultimately responsible for managing value-based reliable delivery. The concept is illustrated by a demo which: (1) provides examples of why current MOU-based approach may result in catastrophic operational problems; (2) provides examples of how an implementation of this sort enables system users to have "one stop shop" at the value; and (3) provide illustrations of how the envisioned IRTO could be used to ensure transmission investments in a multi-market environment.