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FERC RTO/SMD Issues

The FERC has issued several major orders since 1996 in an effort to restructure the wholesale electricity and electric transmission industries. In a “standard market designâ€� initiative, the agency is attempting to establish spot markets throughout the nation for setting rates for wholesale electricity and transmission rates.  The proposal has been quite controversial as states which have not restructured their electric industries are apprehensive of introducing market pricing, particularly after the California market failure.