As part of its examination of price formation in the organized markets, FERC is examining issues related to uplift costs and transparency. On January 19, 2017, FERC issued a Notice of Proposed Rulemaking (NOPR) proposing rules to address these issues, and Order No. 844 is the result of the NOPR process. In Order No. 844, FERC concludes that current RTO and ISO reporting obligations related to uplift costs are insufficiently transparent to permit market participants to fully understand how prices reflect the actual marginal cost of serving load and the full costs of reliable system operations. FERC states that Order No. 844 will allow market participants to align investments in facilities and equipment with the operational needs of the system and may result in shifting a portion of uplift costs to costs recovered through market prices.
To resolve these transparency issues, FERC is imposing, pursuant to section 206 of the Federal Power Act, three reporting requirements on RTOs and ISOs. Each of the reports must be posted on a publicly accessible portion of the RTO or ISO website and must be in machine-readable format.