FW: FERC RTO Week

A good summary of current RTO activities.

Jim

-----Original Message-----
From: "Dick S George" <dsg47@earthlink.net<@ENRON
Sent: Tuesday, November 13, 2001 11:29 AM
To: DS George
Subject: FERC RTO Week

CC list suppressed...

RTO Week at FERC Leads to Lifting of December Deadline

Nov. 11 (California Energy Markets)

Following up on a week-long series of workshops it called
"RTO Week," the Federal Energy Regulatory Commission
issued an order on November 7 to clarify its expectations
for the development of regional transmission organizations
throughout the country [RM01-12]. In addition to
acknowledging the comments it received at the workshops
during the week of October 15-19, it seemed clear from the
order that the federal commissioners heard loud and clear
the message being conveyed at FERC's Western regional
infrastructure workshop held last week in Seattle--"don't
fence us in."

The FERC order tactfully backpedaled from the commission's
recent assertions that it would like to see four regional
RTOs in the country and made particular, though veiled,
reference to Western parties' objections to a regionwide
RTO: "In the West, it is now apparent that the presence of
three sub-regional organizations (bound by a workable
seams agreement) under a larger umbrella organization has
the potential to succeed."

With this statement, FERC left open the likelihood that
the California Independent System Operator, WestConnect
(the successor to Desert Star) and RTO West in the
Northwest would continue to have operational jurisdiction
for transmission services in their respective regions.

FERC also clarified that it intends to proceed in
developing RTOs on two parallel tracks. In the pending RTO
dockets already filed at FERC, it will resolve the
geographic scope and governance issues of the RTOs. In the
docket in which this order was issued, the commission will
take up the thorny issues of transmission tariff and
market-design rulemaking. The commission also recognized
that market activities need not all fall under the rubric
of a stand-alone RTO. For instance, it stated, the Midwest
ISO, Alliance and the Southwest Power Pool have proposed
forming one market-monitoring unit.

The order paid special attention to inviting the
participation of state regulators in developing viable RTO
structures. FERC will be creating state-federal RTO panels
and will seek their advice on the makeup of regional
markets. FERC said it will also be meeting with investors
in order to better understand financing of transmission
projects as well as independent transmission companies.
The commission reiterated its support of both for-profit
transcos and nonprofit ISOs and "any reasonable
combination of the two."

FERC gave itself and those responsible for developing
workable transmission organizations some breathing room as
well. Recognizing that RTO development was at various
stages throughout the country, it backed off from the
December 15 operational deadline established in Order No.
2000. Rather, the commission will establish timelines
addressing the development of RTOs in each general region
in future orders [Shauna O'Donnell].