Western RTO could save California $1.5B per year by 2030, report says
California is in the midst of a debate over whether to integrate its grid into a broader network or maintain tighter control over its electricity policy and supply.
California’s renewables industry could shed jobs under a broader regionalization of the electric grid, but the move would be a net-plus for employment, the new report concludes.
Next 10 concluded that a Western regional transmission organization (RTO) “could result in some renewable energy construction jobs moving from California to other states, but it would likely create a much larger number of California jobs overall.” The group said increasing renewable generation across the region would lower electricity prices, helping to lower costs for businesses and encourage growth.
A portion of the report focuses on whether integrating the California ISO (CAISO) grid with a broader regional could mean a loss of control over the state’s energy management, and ultimately slow the reduction of greenhouse gas emissions.
In a statement, Next 10 explained that CAISO is already independent of state control and that all RTOs are subject to regulation by the Federal Energy Regulator Commission.
“RTOs have limited ability to affect state policy decisions, and their actions are subject to FERC oversight,” the group said. “FERC, meanwhile, is subject to oversight by the courts.”
The report also notes the primary goal of federal law and FERC policy is to facilitate competition. “State policies that don’t interfere with competition are unlikely to run afoul of FERC challenges,” the report says. “Clean energy policies … can be crafted to be compatible with federal rules.”
