Regional Transmission Organization
A Regional Transmission Organization (RTO) is a nonprofit entity that coordinates the movement of electricity across large areas, ensuring reliable and efficient power delivery. RTOs manage the transmission grid, which includes high-voltage power lines, and facilitate the wholesale electricity market, allowing different electricity providers to buy and sell power.
RTOs play a crucial role in maintaining grid stability and preventing blackouts by balancing supply and demand. They also promote competition among electricity suppliers, which can lead to lower prices for consumers. Examples of RTOs in the United States include PJM Interconnection and California Independent System Operator (CAISO).