Perspective

Locational pricing makes the network secure, since the utilities and other market participants get 'paid' to monitor the grid.

The recent pressure on the board and stakeholders of the Midwest Independent Transmission System Operator (MISO)-to postpone the startup of energy markets and concentrate instead on "reliability"-is truly unfortunate. It allows opponents of restructuring to continue to pose a false choice: You can have markets or you can have reliability, but never both.

Commission Watch

ISO New England dares to dream, again.

ISO New England (ISO-NE) wants to become a regional transmission organization (RTO). But just the idea-prior to any official filing at the Federal Energy Regulatory Commission (FERC)-has come under attack. ISO-NE is going to find rough waters ahead, despite a three-year effort aimed at a smooth transition to becoming an RTO. And now with the Oct. 31 filing of the 2,000-plus-page RTO proposal at FERC, the stage is set for these battles to be fought, again.

Do not mistake the FERC's professed neutrality on what works best for regional transmission organizations.

In its final rule on regional transmission organizations, known as Order 2000,[Fn.1] the Federal Energy Regulatory Commission said it would not dictate to the electric utility industry whether and how to form RTOs. Don't be misled. The FERC claims to be agnostic,[Fn.2] but it still has a vision. And that vision leads inexorably to one conclusion. The preferred form for an RTO is the independent system operator, or ISO.

How does each region manage congestion, allocate losses and dispatch resources? Which players gain the most from each approach?

The United States now has six independent system operators, five approved by the Federal Energy Regulatory Commission and one approved by the Public Utility Commission of Texas. These ISOs present an astonishing array of similar and conflicting rules and philosophies by which transmission services are defined and priced.

This article aims to explain some of the key similarities and differences among the ISOs' transmission pricing schemes.

Reliant Energy's Don D. Jordan retired from his position as chairman of the board Dec. 31. R. Steve Letbetter, who had served as president and chief executive officer since June, has been named chairman, president and chief executive officer. Jordan served as CEO of Reliant Energy and its predecessor companies for 23 years, one of the longest tenures as a chief executive among major companies in Houston and in the energy business.

Matthew C. Cordaro has been appointed president and CEO of the Midwest Independent Transmission System Operator.

MARKING THE FIRST CASE of a voluntary agreement in a region not previously organized as a tight power pool, or compelled to act by state legislation, a group of 10 operating electric utilities won approval from the Federal Energy Regulatory Commission on September 16 to form the Midwest Independent Transmission System Operator, Inc., which will take over operational control of certain defined jurisdictional transmission facilities, provided that it complies with conditions imposed by the FERC.