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A Clean Divorce? Splitting the NY Power Pool ISO Toes the Line, but new Reliability Council Raises Brows

Fortnightly Magazine - March 1 1998

marketers all want to deliver power. "So we do think that to the extent there is no divestiture of generation there are potential market power problems."

However, like Gioia, he says the New York commission has made clear it's very interested in having IOUs divest fossil generation as part of their reorganization plans.

"We expect that to happen," White says. "We see no reason why that divestiture will not occur and we are looking at the reliability council in that vein."

Consultant Gordon L. Weil, of Weil and Howe Inc., a lead negotiator in the NE-ISO process, says from his armchair perspective the makeup of New York's reliability council could pose problems.

"If you have members of the reliability council dominated by entities which control generation, there's always the possibility that the reliability council will respond to economic concerns more than reliability concerns," he says, even if the council is merely a standard-setting body. "That's theoretically fine, but I think the [FERC] has taken the attitude that [the ISO] really must be completely divorced from people who have an economic interest."

Joseph F. Schuler Jr. is senior associate editor with Public Utilities Fortnightly.

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