The Open Access Same-Time Information System (OASIS) is an Internet-based system for obtaining services related to electric power transmission in North America. It is the primary means by which high-voltage transmission lines are reserved for moving wholesale quantities of electricity. The OASIS concept was originally conceived with the Energy Policy Act of 1992, and formalized in 1996 through Federal Energy Regulatory Commission (FERC) Orders 888 and 889.
Before OASIS Electric utility systems in North America developed over time as regulated monopolies, jurisdictional utilities given rights to own and operate transmission and distribution networks in a given geographical area along with the responsibility to serve all loads in that same area. At first, utility companies generally served their own system load demand by building local power generation facilities within their systems. Social, economic, and ecological influences later led to new arrangements where a utility company might enter into long-term power purchase or sale agreements with neighboring utility companies, or locate new generation facilities outside of their system and enter into long-term agreements for transmission rights to deliver that energy to their own system. In the short-term world of day-to-day operations, utility companies would agree to "preschedule" (day ahead) or "real time" (same day or next hour) energy transactions with adjacent companies to supplement their own generation asset capabilities.
Vertically Integrated Utilities As utility companies began integrating their operations in more complex ways with their neighbors, they evolved into a vertical organizational structure with three tiers: Generation, Transmission, and Scheduling. On a day-to-day or day-ahead operational level these functions might be performed by three or more people at large utilities, but might be combined into a single employee's job at a small utility. The size of the back office support for each function varies greatly depending upon the size of the utility.
Generation The generation group manages the maintenance and operations of generation assets, with an eye on the future regarding when, where and how much generation assets will need to be developed to keep up with future demand.
Transmission The transmission group concerns itself with maintaining the high voltage transmission system and lower voltage distribution system. As load demands increase or new generation assets come online in their systems, they upgrade existing facilities or construct new transmission corridors to maintain the reliable delivery of energy.
Scheduling The scheduling group is responsible for ensuring that there is adequate power supply to meet the demand of the customer load on a day-to-day and hour-to-hour basis, and also for procuring resources to meet long term needs. These resources can be procured through the generation group, or through purchases and sales with other companies.
Internal Customers Unlike a typical residential or commercial/industrial customer, large bulk users of electricity such as mills, mines and large factories generally have the opportunity to negotiate the rates they will pay their supplier for electricity. In some cases they might even have their own generation assets as well. If they chose to use their supplier's generation instead of their own, they might also be required to pay a fee for the transmission to deliver it, since that transmission might be built specifically to serve their needs. Fees for services provided by the transmission group were defined in a pro forma tariff, a document the transmission group supplied that detailed requirements and responsibilities for the purchaser and provider, and definitions and costs of the types of transmission services available.
Impact of the Energy Policy Act of 1992 The Energy Policy Act of 1992 (EPAct) laid the initial foundation for the eventual deregulation of the North American electricity market. This Act called for utility companies to allow external entities fair access to the electric transmission systems in North America. The act's intent was to allow large customers (and in theory, every customer) to choose their electricity supplier and subsequently pay for the transmission to deliver it from the generation to serve their load. Based on the premise that new generating facilities would be allowed fair access to their regional transmission system, and precipitated by the EPAct of 1992, construction of new independently owned generation assets began in response to the development of the North American electricity market. Recognizing competition was coming, electric utility companies began modifying their scheduling functions by forming affiliated Power Marketing departments. Similarly, financial trading interests and existing energy companies (outside of electricity) saw the opportunities in the emerging electricity market and began to organize unaffiliated power marketing divisions. With open access, anyone with the proper resources and/or creditworthiness could purchase the rights to generation, move it across the transmission network (provided adequate capacity was available), and deliver it to a place of higher demand. Following passage of the EPAct of 1992, independent generation owner/operators (also called independent power producers or IPPs) and unaffiliated power marketers lodged frequent complaints with FERC about unfair treatment under the new open access requirements. The complaints generally followed the same theme: vertically integrated electric utility companies would favor their own affiliated power marketing division over external parties trying to move power on the system. In many cases, the power marketers operated side by side with the transmission operators (or it might even be the same person) and there were no rules to prevent unfair treatment of external transmission system users.
FERC Orders 888 and 889 To protect and promote generation competition and also enforce fair treatment of external users of the transmission system, FERC issued Order 888 and Order 889 on April 24, 1996. The EPAct of 1992 was the beginning of electric deregulation in North America, but Orders 888 and 889 marked the point where the trading of electricity gained a firm foothold.
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