You might have thought the Feds closed the book on any broad, region-wide sharing of sunk transmission costs—especially after FERC ruled last spring in Opinion No. 494 that PJM could stick with...
northwest Vermont, due to lack of power plants and few transmission links to out-of-state power supplies. Emerging reliability problems are cited regarding the ability to export power from southeast Massachusetts and Rhode Island to Connecticut, as well as the ability of Boston and the North Shore to import power. According to ISO New England Senior Vice President and COO Stephen G. Whitley, "The recent Northeast blackout put a spotlight on how interconnected our power grid is."
ISO New England, with little fanfare, filed its RTO proposal at FERC on Oct. 31. Van Welie said, "It is the culmination of a three-year negotiation process, with more than 60 stakeholder meetings held in the past six months."
But despite the best intentions, the state concerns expressed by the attorneys general and the consumer advocates in the New England region are sure to be contentious issues at FERC.
Everything Comes in Threes
ISO-NE applied for RTO status at FERC in January 2001, but FERC rejected the filing for reasons that included lack of independence of market participants.
ISO-NE joined with New York ISO in 2002 to pursue formation of an RTO, but the filing was withdrawn due to stakeholder opposition, anticipated litigation, and uncertainty over timing of FERC's standard market design.
The Oct. 31, 2003, filing represents ISO-NE's third attempt to become an RTO.
Merchant Transmission. FERC accepted a proposal by merchant transmission company, Chesapeake Transmission LLC, to makes sales of transmission rights at negotiated rates for the 400-MW Chesapeake Transmission Line project, consisting of an overhead and submarine alternating-current 230-kV line, intended to relieve congestion between the southwest portion of PJM and the Delmarva Peninsula.
California Market Design. FERC accepted California ISO's conceptual plan aimed at redesigning its market within the framework of its Comprehensive Market Design 2002 (MD02). The ISO will implement locational marginal pricing and an Integrated Forward Market in redesigning its congestion management system. .
MISO Tariffs. FERC dismissed a compliance filing by Midwest Independent Transmission System Operator and Potomac Economics Inc., its independent market monitor (IMM), to comply with market mitigation requirements as well as MISO's open access transmission and energy markets tariffs (TEMT), containing terms to implement its day-ahead energy market, real-time energy market, and financial transmission rights. The TEMT is a new market design to govern all services provided by MISO. FERC wants more details on a pro forma system support resources agreement, marginal loss crediting mechanisms, initial FTR allocations, creditworthiness provisions, and market mitigation mechanisms. and
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