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Fortnightly Magazine - March 1 1996

about the separation of the Power Exchange from the ISO. Why is it a big deal?" Commissioner Bailey: "What does an ISO get us that comparability does not?" Commissioner Massey: "Let me tell you what's on my mind. At the end of the day I want to be able to say that we have fully mitigated transmission market power."

MIT professor Paul Joskow notes that "one way to interpret the NOPR is to tell vertically integrated utilities to behave as if they aren't vertically integrated." Is it working? Ask Steven Walton, manager for transmission policy and pricing at PacifiCorp.

"The pain of vertical integration is increasing," says Walton. "The FERC keeps pounding the nail in our heels a little deeper. At first, we were feeling the nail a little. Now it's getting to the point where we want to take the shoe off." t



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