Hoecker, Trebing see advantages in economies of scale.
Will New York's proposed independent system operator fall victim to the FERC's evolving RTO process?
"It has some conceivable drawbacks," FERC Chairman James J. Hoecker told attendees at the 30th Annual Institute of Public Utilities Conference. "One is that it's a single-state ISO and in the final analysis, regional transmission organizations probably need to cover broader geographical areas."
Hoecker used the forum at the Dec. 9-11 conference in Williamsburg, Va., to promote the commission's federal-state effort to develop guidelines for RTOs. The Federal Energy Regulatory Commission issued a Notice of Intent to consult with states after U.S. Department of Energy Secretary Bill Richardson gave the commission authority under Section 202(a) of the Federal Power Act to partition the nation into regional grid reliability districts and regional transmission organizations.
Hoecker also took issue with the title of the conference - "Competition in Crisis: Where Are Network Industries Heading?" - and pundits who insist electricity restructuring has failed.
"The argument reflects yet another kind of impatience with the current state of affairs," he said. "And maybe this is why the Institute called the conference 'Competition in Crisis.' My view of the situation is not dismal."