Definition
The separation of electric utility services — generation, transmission, and distribution — into distinct, separately priced components. FERC Order 888 required functional unbundling of wholesale electric services, meaning transmission utilities must provide transmission service under the same rates, terms, and conditions to all customers, including their own generation affiliates. This prevents cross-subsidization and promotes competition in wholesale power markets.
Topic Deck
OATT Core Concepts
Source
FERC Pro Forma OATT / LGIP
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