Perspective

Deck: 
Independent transmission companies have a role in creating public benefit in wholesale competitive electricity markets.
Fortnightly Magazine - July 15 2002
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Independent transmission companies have a role in creating public benefit in wholesale competitive electricity markets.

On April 25, FERC conditionally approved formation of TRANSLink Transmission Company, LLC (TRANSLink), a multi-state, multi-utility independent transmission company (ITC) that will operate in the Southwest, Midwest, and upper Midwest in the United States. TRANSLink will be an ITC under the combined Midwest Independent Transmission System Operator/Southwest Power Pool (MISO/SPP) regional transmission organizations and in a Western RTO covering the Colorado region. To date, there is no approved RTO in the Western region that TRANSLink serves. TRANSLink intends to use the same model in the West.

The purpose of this perspective article is to expand upon the FERC and DOE's public policy observations. It is directed at the TRANSLink relationship with MISO/SPP, and it describes the four key benefits the hybrid RTO/ITC structure envisioned by TRANSLink provides to electricity customers.

Key Benefit 1: Focus on Transmission as a Business

TRANSLink's primary benefit is that it will promote and, in fact, compel employees to think of the grid they plan and control as a distinct, customer value-added business. Like other owners and operators of infrastructure operations, TRANSLink's sole purpose will be to ensure market access for all suppliers and users of electricity on its system. TRANSLink's success will be measured by its ability to facilitate market transactions, increase transmission infrastructure, reduce the cost of electricity delivered over the bulk power system to customers, and provide a fair return to investors.

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