Fortnightly Magazine - August 2002

Transmission Expansion: Risk and Reward in an RTO World

Some thoughts on who should take the lead and how to set up financial incentives.


 

Some thoughts on who should take the lead and how to set up financial incentives.

One of the most interesting questions that arises from federal restructuring of the electric grid, with regional transmission organizations (RTOs) and a standard market design (SMD), concerns the risk of building transmission in an RTO environment.

An Open Checkbook

Why grid owners don't like FERC's new rules on gen interconnection.

A year ago, when a group of electric utilities in the Southwest signed off on deals to hook up new generators in Arizona with an innovative "common bus" treatment for two adjoining switchyards at the Palo Verde hub, the Federal Energy Regulatory Commission (FERC) was quick to heap on the praise. "Attaboy," said FERC's Pat Wood, at the commission's meeting of July 25, 2001. Nevertheless, over the past twelve months, FERC twice has proposed new rules to govern the way in which new power plants gain the right to interconnect with the interstate transmission grid. These new rules on gen interconnection form an essential part of the puzzle more aptly known as the standard market design (SMD).

Perspective

The appropriate role for ITCs is rather different-and maybe not as exciting-as the role ITC proponents seem to have in mind.


People

, general manager and CEO of the Sacramento Municipal Utility District (SMUD) was elected chairwoman of the board of directors for the Large Public Power Council (LPPC). Schori is the first woman to serve as chair for the LPPC. She is a 23-year veteran of SMUD, and was named general manager and CEO in 1994. , president of the Nebraska Public Power District, was elected vice chairman. Both Schori and Mayben will serve two-year terms.

News Analysis

Pennsylvania loses faith in FERC, looks for help from the Justice department.


Pennsylvania loses faith in FERC, looks for help from the Justice department.

"A well functioning market on an average day works better than we regulators can do on our best day." Perhaps this quote, attributed to Pat Wood, chairman of the Federal Energy Regulatory Commission (FERC), best captures the prevailing view among transmission officials in the Northeast. But the feeling out West is decidedly different. So is the mood among state utility regulators.

Off Peak

Congress is still scratching the surface on electric competition.<font color="990000">

Off Peak

August 2002

Seven-Year Itch

Congress is still scratching the surface on electric competition.

August in Washington. Traffic thins out, but not the gridlock. For each of the past seven years, there's been an energy bill lurking somewhere in the hallways of the Russell or Longworth congressional buildings.

A Vision for Trasmission: How the RTOs Stand

And where the trouble spots lie in FERC's grid plan.


And where the trouble spots lie in FERC's grid plan.

The mood appeared calm on June 26 in Washington, D.C., at the regular bi-weekly meeting of the U.S. Federal Energy Regulatory Commission (FERC). Key officials from various regional transmission organizations (RTOs) had gathered before chairman Pat Wood and the other commissioners to brief them on progress over the past year in reforming wholesale electric markets, and on what the FERC might expect in the summer at hand.

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