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Enron Mail |
It looks like Brownell is staying the course on RTOs. See the highlighted part of the case below. This case is about a customer wanting the right to buy ancillaries at market based rates. The Commission denies the request but Brownell uses the opportunity to make the point that RTOs will provide customers more service options and choices that are not available today, services that customers are asking for.
Sarah United States of America FEDERAL ENERGY REGULATORY COMMISSION Carolina Power & Light Company Docket Nos. ER01- 2301-000 and ER01-2301-001 (Issued November 1, 2001) BROWNELL, Commissioner, concurring: In this order we accept Carolina Power & Light's proposal to makes sales of certain ancillary services at market-based rates. We find that the proposal is consistent with certain conditions as set forth in Order No. 888 and our policy in Avista Corporation, 87 FERC 61,223 (1999) (Avista). In Order No. 888, and subsequent cases, the Commission required transmission providers to offer certain ancillary services at cost-based rates as part of their open-access transmission commitment but also contemplated that third-party suppliers (that is, parties other than the transmission provider in a particular transaction) would also provide ancillary services. The Commission left open the possibility that ancillary services could be provided at other than cost-based rates and stated it would entertain requests for market-based rates by third-parties if supported by analyses that demonstrated the seller lacked market-power. In Avista the Commission set forth several criteria that allowed a third party to make sales at market-based rates, without making such a demonstration. The Commission concluded that the protection of the cost-based backstop under the open-access tariff in conjunction with the criteria set forth in Avista provided an appropriate and effective safeguard against potential anti-competitive behavior. North Carolina Electric Membership Corporation (NCEMC), in the case before us, claims that for the portion of its load on CP&L's system, CP&L is the only game in town because no other entity offers such services in the control area. NCEMC believes that the rates under CP&L's market-based rate tariff may be lower than the open-access transmission rates and may offer a greater range of products and thus that it should have the opportunity to purchase ancillary services under CP&L's market-based rate tariff. NCEMC's request underscores the value that an RTO can bring to the region. First, access to information, standardized rules and procedures (including generation interconnection) and comparable access to the transmission grid - - all things that an RTO can bring or enhance - - should incent additional suppliers of energy and ancillary services in CP&L's control area. Given the opportunity, a third party supplier will have 2 an incentive to compete business away from the transmission provider, if it is profitable. Second, control of the transmission system by an independent operator should mitigate, if not eliminate, concerns of anti-competitive behavior and affiliate abuse and thus produce greater options for customers - - ones that NCEMC appears to be seeking now. CP&L did not request to sell ancillary services at market- based rates to customers on its own system and we do not direct CP&L to do so. I believe that the order is consistent with prior orders and Commission policy. I also believe, however, that today's order has not satisfied NCEMC's needs and has not advanced customer choice or flexibility, both of which I believe are necessary for the wholesale competitive markets to thrive and can be advanced through RTO formation. Nora Mead Brownell Commissioner
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