A regional transmission organization (RTO) in the United States is an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid. The transfer of electricity between states is considered interstate commerce, and electric grids spanning multiple states are therefore regulated by the Federal Energy Regulatory Commission (FERC).[1] The voluntary creation of RTOs was initiated by FERC Order No. 2000, issued on December 20, 1999.[2] The purpose of the RTO is to promote economic efficiency, reliability, and non-discriminatory practices while reducing government oversight.
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