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News Digest

Fortnightly Magazine - March 1 2000

meritorious cases to the FERC.

* Asset Transfers. SPP proposed using an agency agreement to transfer control of transmission to the RTO (to avoid creating tax problems for municipal and public power utilities). The PUCs favored the usual transfer agreements approved by the FERC under Federal Power Act Section 203.

The PUCs added that SPP's proposals for managing short-run congestion (to avoid curtailments of firm service) resembled those approved by the FERC for the Midwest Independent System Operator. Yet in that case, as the PUCs observed, the FERC had said it was "unclear how this procedure will work in practice."

Nevertheless, the PUCs said they supported SPP's ongoing discussions of a possible merger with the Midwest ISO.

SOME PROTESTORS COMPLAINED THAT SPP'S rushed application left no chance for input from interested parties, and saw that as defeating the purpose of the regional workshops on RTOs to be held this spring by the FERC.

And, with SPP's bid marking the first request for RTO status, Dynegy felt the commission should set a high standard for adherence to Order 2000. "It is¼absolutely critical that the Commission insist that SPP's proposal meet both the letter and spirit of Order No. 2000. If [it] sets a precedent of allowing exceptions to its new regulations at this early date¼the competitive advantages it envisioned¼will never be realized."

SPP asked the FERC to act on or before March 1 to speed the process of electing three new classes of nonstakeholders to its board of directors.

-CJL and BWR

News Digest was compiled by Carl J. Levesque, associate editor, Lori Burkhart and Phillip Cross, contributing legal editors, and Bruce W. Radford, editor-in-chief. For more frequent updates, see www.pur.com.

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