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News Digest

Transmission & ISOs
Fortnightly Magazine - June 1 2000

then and is now thoroughly commingled with the question of whether the transmission-owning nonjurisdictional California governmental entities will place their facilities under control of the ISO."

In a Nutshell. Enron described the ISO's new pricing proposal as "discriminatory." It complained that new transmission owners joining the ISO would be "held harmless" against increase in the transmission access change and the ISO's grid management charge. It added that the new tariff would shift approximately $730 million in costs - from customers of current TOs that belong to the ISO, to customers of other transmission-owning utilities.

In short, Enron saw the entire process as political: "Instead of concentrating on developing a just and reasonable rate proposal, the ISO instead converted this process into one whose purpose is to cajole and induce new participating transmission owners to join the ISO through a series of subsidies and preferences.

"This has distorted the entire process and explains in a nutshell why the ISO's proposal is so unfair and unreasonable."


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