Organization of MISO States

Killing the Goose

Second thoughts on transmission’s golden egg.

The electric utility industry offers up a wealth of ideas on how the Federal Energy Regulatory Commission might reform its policy, adopted under FERC Order 679 in 2006, of granting financial incentives for investments in transmission line projects that ensure reliability or mitigate line congestion so as to reduce the cost of delivered power. Fortnightly’s Bruce W. Radford reports.

Transmission Rate Incentives

In an October order, the Federal Energy Regulatory Commission (FERC) trimmed the authorized rate incentive for the RITELine transmission project by one-third. The action prompted Commissioner Moeller to ask whether the commission is retreating from its incentive policy on needed transmission lines.

FERC’s move might appear calculated to send a message to the power industry.

The Federal Energy Regulatory Commission (FERC) in mid-October granted a trimmed-down set of rate incentives for the proposed $1.6 billion RITELine transmission line project.

People (November 2011)

Exelon and Constellation announce post-merger executive lineup; Xcel Energy names new CFO and general counsel; Organization of MISO States elects new officer; plus senior staff changes at FirstEnergy Nuclear Operating, American Electric Power, Alterra Power, and others.

People (December 2010)

Steven Specker joins Southern Company board; Chesapeake Utilities names Michael McMasters CEO; Ethics inquiry leads to dismissals and new president at Duke Indiana; plus executive management announcements at American Transmission, Oncor, FirstEnergy, Alliant, NYISO, Gridwise Alliance, the Organization of MISO States, and more ...

Federalizing the Grid

Renewable mandates will shift power to FERC but pose problems for RTOs.

A recent survey conducted by the U.S Office of Personnel Management and reported by the Washington Post on March 13 ranked the Federal Energy Regulatory Commission as eighth best of some 37 federal agencies in terms “talent,” and third in “leadership and knowledge.”

The Queue Quandary

Why developers today are often kept waiting to get projects ok’d to connect to the grid.

Late last year FERC learned that the Midwest regional grid likely would require at least 40 years — until 2050 — simply to clear its backlog of proposed gen projects awaiting a completed interconnection agreement to certify their compatibility with the interstate power grid. But grid engineers would meet that date only by shortening the process and studying multiple projects simultaneously in clusters. To apply the process literally, studying one project at a time, as envisioned by current rules, the Midwest reportedly would need 300-plus years to clear its project queue.

Vintage, Voltage or Votes

AEP rekindles debate over grid pricing, but should the outcome hinge on majority rule?

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 license-plate pricing (LPP) for transmission lines already planned and built. If you thought that, you weren’t alone. Of 25 transmission owners (TOs) in the Midwest ISO (MISO), 24 voted recently to do the same for their market as well.

Long-Term Transmission Rights: A High-Stakes Debate

The absence of long-term transmission rights could exclude potential competition—and cause higher electricity costs.

Power-industry restructuring redistributed financial uncertainties that discourage generation investment and ultimately raise the price of electricity to consumers.

State Regulators: Driven By Reliability

Can natural gas supply keep up with demand for power?

STATE REGULATORS:

Can natural gas supply keep up with demand for power?

Interviews

Things are looking up for the energy industry, but tough issues remain. Regulators-forced to grapple with the mismatch between volatile natural-gas prices and years of building gas-fired power plants-have learned a thing or two. They now insist on new rate schemes and risk-management methods while promoting the use of liquefied natural gas.

MISO: Building The Perfect Beast

Seams, holes, and historic precedent challenge the Midwest ISO's evolution.

Seams, holes, and historic precedent challenge the Midwest ISO's evolution.

In a single sentence, Bill Smith of the Organization of MISO States (OMS) summarizes prevailing concerns about the new-and-improved Midwest ISO: "When it starts, it has to work."