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Assimilating the best of the regulated-utility and merchant models.
Fortnightly Magazine - August 2004
  • the same rules as any other bidder.
  • The structure of the RFP, the bid evaluation, and the bid selection should be overseen by the IMA.
  • The purchasing utility would be allowed an adder as a substitute for return on rate base for selections that involve power purchases from third parties as though the utility had chosen to satisfy its requirements via plant acquisition or construction.

Establish Equal and Fair Access to Transmission

  • The IMA would oversee, process, and administer transmission service requests, including OASIS administration (computation of TTC, ATC, etc.). The IMA would not simply be a monitor but would actually grant or deny service requests. The transmission provider still would perform the actual work required to evaluate and accept or deny a transmission request, but all such efforts would be reviewed and approved by the IMA prior to the customer being notified of the results.
  • The IMA would oversee, process, and administer interconnection requests, including system impact studies and facility studies. As with transmission requests, while the IMA ultimately would be responsible for granting an interconnection service request, the transmission provider, if it chose to do so, would be responsible for conducting whatever studies or other activities were required in connection with the request, subject to the IMA's oversight and approval prior to the customer's being notified as to whether interconnection service is available.
  • The IMA would review, in real time, the transmission provider's operation of its transmission and generation facilities, including the transmission provider's decisions with respect to line ratings, transmission outages, and generation dispatch, in order to provide assurances that operational decisions were not made to foreclose competition.
  • The transmission provider would be required to proceed under the non-rate terms and conditions of its OATT when securing transmission or ancillary services to serve its native-load customers. The processing of all such transmission and ancillary service requests would be subject to the IMA's oversight and approval, as would transmission and ancillary service requests from wholesale customers.

Improve Transmission Expansion

  • The IMA and the transmission provider would determine the nature and cost of required network upgrades.
  • The cost of upgrades not already included in the transmission provider's base plan (upgrades needed to meet existing firm commitments for the planning horizon) would be directly assigned to the party that requested the service for which such upgrades were necessary without transmission credits. Upgrades required to serve native-load requirements would be "assigned" to the transmission provider and recovered under its retail service tariff. In exchange, the entity directly assigned the cost of the network facilities would receive the financial benefits related to those facilities, such as congestion savings or, possibly, the additional transmission revenues that would not have existed but for the transmission construction.