FERC discussion on Midwest RTOs

At the FERC meeting today, the Commissioners discussed the Midwest RTOs. They did not vote out any order or even indicate when they would be voting on orders.

The presentation from a FERC staffer focused on the status reports filed by ARTO and MISO, indicating that both RTOs were on schedule to be operational (MISO by 12/15) and on schedule for their seams commitments made in the IRCA. Specifically, it was stated that MISO claimed it was ready to go operational because they had spent $160 million, have staff, have the physical infrastructure in place and have complete market trials. It was indicated that ARTO was not now ready to be operational, but could be within 90 days from FERC approval of their structure and National Grid as managing member.

Massey and Brownell clearly are nervous about allowing the IRCA scheme to continue - compatible but not identical - but staff stated that the order on the settlement and IRCA only required compatible and in fact did not even discuss compatible CMS, but rather just a common bulletin board.

Discussion focused on the MISO/SPP merger - in fact, Jim Torgesen was brought up from the audience to talk. He described the plans for independent Board, for timing of the merger. He indicated that they would be working towards a single CMS, single tariff. Massey noted it would be a better scope, though staff would not comment on the merger compliance with Order No. 2000. (Perhaps they wanted a filing first)

Translink was also discussed, though it is pending. It was just noted as another possible addition to scope of MISO and Massey commented that ITC is a very important upcoming issue. Staff was asked to provide a side by side comparison of the Translink proposal (and Appendix I allowances for ITC retention of RTO functions) with the Southeast proposal on ITC. This is something we should probably also provide in our comments on Translink, just to make sure staff is honest.

In brief, Wood stated that it is important to get the model right for a big region, without holes like swiss cheese, and don't scare people off. He is very interested in the SE proposal that would have divided up functions between the transco RTO and the IMA (independent management authority) in attempt to accommodate public power entities and state commissions.