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Commission Watch

Irregular seams affect ratemaking policies.
Fortnightly Magazine - November 1 2003

eliminate its RTOR for all of the former Alliance Companies, regardless of whether those companies have eliminated individual through-and-out rates. Finally, it asked FERC to condition the elimination of MISO and PJM RTORs on the adoption of a lost revenue recovery mechanism, such as SECA.

A History of RTORs

When FERC initially approved MISO's fixed-rate surcharge for through-and-out transmission service (RTOR), it was designed to recover revenue losses otherwise incurred by transmission owners after elimination of rate pancaking. The original RTOR was pegged at $0.78 per kW-month and was to apply during a six-year transition period. It was added on top of existing license-plate zonal rates imposed across the region. MISO allocated 50 percent of RTOR revenues to transmission owners based on relative share of the would-be lost revenues. The other 50 percent was spread out based on relative power flows carried by transmission owner member systems to provide through-and-out service. . -L.B.


The proposed MISO/PJM Super Region is the footprint made up of the service territories that will comprise MISO, including NIPSCO, Ameren, and First Energy, which comprise the GridAmerica Cos., and PJM, including the former Alliance companies that have announced plans to join PJM. The former Alliance companies unsuccessfully attempted to form the Alliance RTO. These include: Ameren, American Electric Power Co., Commonwealth Edison Co., Dayton Power and Light Co., FirstEnergy, Illinois Power Co., and Northern Indiana Public Service Co. Two other former Alliance companies, Detroit Edison Co. and Consumers Energy Co., previously left Alliance and joined MISO.-L.B.


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