- Email: [email protected]
Six Midwest IOUs form ISO
T
H
E
IN
NEWS
F
0
C
U
S
systems. “Although FERC’s [open
IS0 puts a wolf in care of the
Centerior Energy Corp., CINergy
access rulemaking] has moved
sheep.”
Corp., Detroit Edison Co., North-
the nation’s transmission net-
Williamson told The EZectricit>/
ern Indiana Public Service Co.
works substantially closer to a
Journal that his company decided
and Wisconsin Electric Power
competitive, open-access regime,
to advocate the “D-word”--dives-
Co. Together, the companies own
MGE believes a truly competitive
titure-as
bulk power system requires com-
ence on a task force in the state
voltage transmission in portions
plete divestiture of transmission
studying restructuring. That led
of Indiana, Kentucky, Michigan,
facilities by all electric utilities and
to a recent proposal from the state
Ohio, Tennessee, Wisconsin, West
other entities owning generation
regulators on the subject. “The
Virginia, and Virginia. The group
or distribution facilities,” David
more we discussed the problem
says it is open to anyone who
Mebane, MGE chairman, said in
of the potential for gaming the
owns or controls transmission in
a letter to the federal regulators.
transmission system, the more
the East Central Area Reliability
MGE said its request was prompted by the debate over how
a result of his experi-
38,830 miles of combined high-
convinced I became that this is the
Council (ECAR) and the Mid-
only way to avoid market power.”
America Interconnected
Net-
work (MAIN).
to define the role of the inde-
T
pendent system operator. MGE says the transmission system
he utilities will form working groups to develop proto-
should be organized on a regional
cols covering operations, admini-
basis in which the operator would:
stration, planning, pricing,
l
management and dispute resolu-
Provide all users with open
access and grid-wide pricing on
tion. Ownership of the transmis-
terms and conditions equivalent
sion facilities will not transfer to
to transmission owners;
the ISO, but will stay with the
l
utilities that now own the lines.
Eliminate incentives and op-
The group says it “is likely that
portunities to constrain the system in favor of a local generator’s
management of the IS0 will re-
market power;
port directly to a board of direc-
l
tors, whose membership will rep-
Provide workable ways to
eliminate transmission con-
Six Midwest IOUs Fovm IS0
resent balanced and diverse
ehold the super-ISO. Six Mid-
B
director of electric operations, told
western investor-owned utili-
Electricity Daily that details of gov-
straints; and l
Allocate costs to users equita-
bly
interests.” Jose Delgado, Wepco
“If access to transmission networks is shared without divesti-
ties yesterday said they have
ernance have not been worked
agreed to pursue an independent
out, but “we intended governance
ture of ownership, as suggested
operation of an open transmission
to be balanced among the users of
by all other proposals, transmis-
system covering more than
the network.”
sion owners will face irresistible
100,000 square miles. The organi-
temptations to favor affiliated dis-
zation will be known as the Mid-
Delgado says the super-IS0 will offer two benefits. First, he said,
tributors and generators over
west Independent
“is an independent organization
nonaffiliated providers,” says
tor.
Mark Williamson,
MGE senior
System Opera-
The utilities signing the memo-
that will, beyond suspicion, offer open, comparable access on a fair
vice president for energy services.
randum of understanding are
and equitable basis.” As impor-
“Even the slightest interest in an
American Electric Power Co.,
tant, he said, the group will bring “a large regional overview to im-
T
H
E
NEWS
IN
F
0
What needs to happen next, Del-
prove reliability of the network.” He said that with the current sys-
gado said, “is to put meat on the
tern, “It is difficult to know who is
bones.” There are many technical
C
U
S
these independent system operators are truly independent.” Details of the new IS0 structure
doing what to whom. Things can
issues that need to be worked out,
likely will be submitted to the
get very dicey”
he said, including the “mechanics
Federal Energy Regulatory Com-
of how to relate” to existing con-
mission late this year, and will be
may end up looking very much
trol areas. “For a system as large
implemented in stages once FERC
like what people have been call-
as the one we are talking about,
gives the group a green light.
ing a “regional transmission
we need to decide what kind of
group. ” “If you look at what it
control centers we need, and that
will be doing, an RTG just may
sort of issue.”
Delgado notes that the new IS0
DOE Backs New Solar/H2 Production, Storage Zchnology
The American Public Power
not be necessary. Concepts are evolving at such speed in this in-
Association’s Dave Penn com-
dustry.”
mented, “I understand that the
Although the new IS0 so far in-
A
tiny Star Wars spin-off thinks it has come up with a way to
market is driving this, but I hope
overcome one of solar energy’s
eludes only IOUs, Delgado said
these institutions are not devel-
chief drawbacks-the
that there is no intent to exclude
oped strictly by IOUs. We need
storing it-and
public power. “This is not in-
state and federal regulators to be
of Energy is putting $2.5 million
tended to be an IOU organization,
really involved to be sure that
into the technology for a demon-
but a network organization.”
+
M
E
E
T
difficulty of
the Department
stration. The technology also of-
IN
Conference
G Date
S
0
F
Place
INTEREST Sponsor
Q Contact
Hydropower: Capturing the Competitive Edge
Mar. 19-22
Washington, DC.
National Hydropower Association
(202) 383-2530
PowerFair ‘96: A Conference & Trade Show for the Electricity and Natural Gas Industries
Mar. 25-27
New Orleans, LA
Enerdata Ltd.
(905) 470-0117
Innovative Electricity Pricing: Managing The Transition to Market-Based Pricing
Mar. 27-29
San Dlego, CA
EPRI, EEI, Southern California Edison and Tabors, Caramanis & Assoc.
(415) 8558763
The Virtual Utility: Accounting, Technology, & Competitive Aspects of the Emerging Industry
Mar. 31 -Apr. 2
Niagara Mohawk, CSC Index, NYSERDA, Rensselaer (Host)
(518) 276-6751
Utilrty Strategic Marketing Conference: Shaping the Competitive Environment
Apr. 17-18
Orlando, FL
Electric Power Research Institute, Synergic Resources Corp., XENERGY Inc.
@lo) 667-2’60
The Risk Management Institute: Hedging Strategies & Derivatives in the Energy Industry
Apr. 22-26
White Plains, NY
INFOCAST
(818) 609-9145
9th Annual Pricing Conference
Apr. 23-26
Chicago, IL
The Pricing Institute
(800) 999-3123
Wheeling and Dealing: Opportunities and Challenges in the New Electric Industry
Apr. 25-26
Chicago, IL
Center for Regulatory Studies and Institute of Government and Public Affairs
(309) 438-3765
Energy Services Marketing
Apr. 25-26
Cambridge, MA
INFOCAST
(818) 609-9145
Strategic Issues for Power Marketers
May 2-3
Houston, TX
INFOCAST, ENRON, Electric Clearinahouse. Inc.
(818) 609-9145
Legal Challenges for Today’s Utilities
May 6-7
Washington, DC.
Reid & Priest, INFOCAST
(818) 609-9145
March 1996
Saratoga Springs’ NY
7
H
E
IN
NEWS
F
0
C
U
S
systems. “Although FERC’s [open
IS0 puts a wolf in care of the
Centerior Energy Corp., CINergy
access rulemaking] has moved
sheep.”
Corp., Detroit Edison Co., North-
the nation’s transmission net-
Williamson told The EZectricit>/
ern Indiana Public Service Co.
works substantially closer to a
Journal that his company decided
and Wisconsin Electric Power
competitive, open-access regime,
to advocate the “D-word”--dives-
Co. Together, the companies own
MGE believes a truly competitive
titure-as
bulk power system requires com-
ence on a task force in the state
voltage transmission in portions
plete divestiture of transmission
studying restructuring. That led
of Indiana, Kentucky, Michigan,
facilities by all electric utilities and
to a recent proposal from the state
Ohio, Tennessee, Wisconsin, West
other entities owning generation
regulators on the subject. “The
Virginia, and Virginia. The group
or distribution facilities,” David
more we discussed the problem
says it is open to anyone who
Mebane, MGE chairman, said in
of the potential for gaming the
owns or controls transmission in
a letter to the federal regulators.
transmission system, the more
the East Central Area Reliability
MGE said its request was prompted by the debate over how
a result of his experi-
38,830 miles of combined high-
convinced I became that this is the
Council (ECAR) and the Mid-
only way to avoid market power.”
America Interconnected
Net-
work (MAIN).
to define the role of the inde-
T
pendent system operator. MGE says the transmission system
he utilities will form working groups to develop proto-
should be organized on a regional
cols covering operations, admini-
basis in which the operator would:
stration, planning, pricing,
l
management and dispute resolu-
Provide all users with open
access and grid-wide pricing on
tion. Ownership of the transmis-
terms and conditions equivalent
sion facilities will not transfer to
to transmission owners;
the ISO, but will stay with the
l
utilities that now own the lines.
Eliminate incentives and op-
The group says it “is likely that
portunities to constrain the system in favor of a local generator’s
management of the IS0 will re-
market power;
port directly to a board of direc-
l
tors, whose membership will rep-
Provide workable ways to
eliminate transmission con-
Six Midwest IOUs Fovm IS0
resent balanced and diverse
ehold the super-ISO. Six Mid-
B
director of electric operations, told
western investor-owned utili-
Electricity Daily that details of gov-
straints; and l
Allocate costs to users equita-
bly
interests.” Jose Delgado, Wepco
“If access to transmission networks is shared without divesti-
ties yesterday said they have
ernance have not been worked
agreed to pursue an independent
out, but “we intended governance
ture of ownership, as suggested
operation of an open transmission
to be balanced among the users of
by all other proposals, transmis-
system covering more than
the network.”
sion owners will face irresistible
100,000 square miles. The organi-
temptations to favor affiliated dis-
zation will be known as the Mid-
Delgado says the super-IS0 will offer two benefits. First, he said,
tributors and generators over
west Independent
“is an independent organization
nonaffiliated providers,” says
tor.
Mark Williamson,
MGE senior
System Opera-
The utilities signing the memo-
that will, beyond suspicion, offer open, comparable access on a fair
vice president for energy services.
randum of understanding are
and equitable basis.” As impor-
“Even the slightest interest in an
American Electric Power Co.,
tant, he said, the group will bring “a large regional overview to im-
T
H
E
NEWS
IN
F
0
What needs to happen next, Del-
prove reliability of the network.” He said that with the current sys-
gado said, “is to put meat on the
tern, “It is difficult to know who is
bones.” There are many technical
C
U
S
these independent system operators are truly independent.” Details of the new IS0 structure
doing what to whom. Things can
issues that need to be worked out,
likely will be submitted to the
get very dicey”
he said, including the “mechanics
Federal Energy Regulatory Com-
of how to relate” to existing con-
mission late this year, and will be
may end up looking very much
trol areas. “For a system as large
implemented in stages once FERC
like what people have been call-
as the one we are talking about,
gives the group a green light.
ing a “regional transmission
we need to decide what kind of
group. ” “If you look at what it
control centers we need, and that
will be doing, an RTG just may
sort of issue.”
Delgado notes that the new IS0
DOE Backs New Solar/H2 Production, Storage Zchnology
The American Public Power
not be necessary. Concepts are evolving at such speed in this in-
Association’s Dave Penn com-
dustry.”
mented, “I understand that the
Although the new IS0 so far in-
A
tiny Star Wars spin-off thinks it has come up with a way to
market is driving this, but I hope
overcome one of solar energy’s
eludes only IOUs, Delgado said
these institutions are not devel-
chief drawbacks-the
that there is no intent to exclude
oped strictly by IOUs. We need
storing it-and
public power. “This is not in-
state and federal regulators to be
of Energy is putting $2.5 million
tended to be an IOU organization,
really involved to be sure that
into the technology for a demon-
but a network organization.”
+
M
E
E
T
difficulty of
the Department
stration. The technology also of-
IN
Conference
G Date
S
0
F
Place
INTEREST Sponsor
Q Contact
Hydropower: Capturing the Competitive Edge
Mar. 19-22
Washington, DC.
National Hydropower Association
(202) 383-2530
PowerFair ‘96: A Conference & Trade Show for the Electricity and Natural Gas Industries
Mar. 25-27
New Orleans, LA
Enerdata Ltd.
(905) 470-0117
Innovative Electricity Pricing: Managing The Transition to Market-Based Pricing
Mar. 27-29
San Dlego, CA
EPRI, EEI, Southern California Edison and Tabors, Caramanis & Assoc.
(415) 8558763
The Virtual Utility: Accounting, Technology, & Competitive Aspects of the Emerging Industry
Mar. 31 -Apr. 2
Niagara Mohawk, CSC Index, NYSERDA, Rensselaer (Host)
(518) 276-6751
Utilrty Strategic Marketing Conference: Shaping the Competitive Environment
Apr. 17-18
Orlando, FL
Electric Power Research Institute, Synergic Resources Corp., XENERGY Inc.
@lo) 667-2’60
The Risk Management Institute: Hedging Strategies & Derivatives in the Energy Industry
Apr. 22-26
White Plains, NY
INFOCAST
(818) 609-9145
9th Annual Pricing Conference
Apr. 23-26
Chicago, IL
The Pricing Institute
(800) 999-3123
Wheeling and Dealing: Opportunities and Challenges in the New Electric Industry
Apr. 25-26
Chicago, IL
Center for Regulatory Studies and Institute of Government and Public Affairs
(309) 438-3765
Energy Services Marketing
Apr. 25-26
Cambridge, MA
INFOCAST
(818) 609-9145
Strategic Issues for Power Marketers
May 2-3
Houston, TX
INFOCAST, ENRON, Electric Clearinahouse. Inc.
(818) 609-9145
Legal Challenges for Today’s Utilities
May 6-7
Washington, DC.
Reid & Priest, INFOCAST
(818) 609-9145
March 1996
Saratoga Springs’ NY
7