News Analysis

 

 

The ISO forges ahead, with or without its members.

What if you formed a regional transmission organization and nobody joined? That's the question in the Midwest, as one by one, utilities who once were members now say they will leave the Midwest Independent System Operator, even as the ISO ploughs forward, undeterred, with plans to upgrade its design to qualify as a full-fledged RTO under the rules in FERC Order 2000.

In fact, rather than take the defections quietly, the Midwest ISO in its Jan. 16 RTO filing asked the Federal Energy Regulatory Commission to deny the requests to withdraw. The non-profit ISO notes that it is considering structural changes, including adopting the for-profit "transco" model of its rival, the proposed Alliance Regional Transmission Organization-which continues to lure the MISO defectors.

All of this leads many to question whether the Midwest region can or should support two RTOs. And, as MISO's changes blur the differences between the two would-be RTOs, a single composite organization begins to appear more likely.

Tipping his hand as to what the FERC might favor, Commissioner William Massey made clear his support for a merged solution at a Jan. 10 FERC meeting. Noting that he was "chagrined" by the planned withdrawals from the MISO, Massey said, "I believe it's time for the commission to require the stakeholders in the Midwest to attempt to forge a single RTO."