ISO New England

Have regional transmission operators (RTOs) and independent system operators (ISOs) asked for excessive levels of credit from customers? The Federal Energy Regulatory Commission (FERC) must face that difficult question as it investigates whether to institute a rulemaking on credit-related issues for service provided by ISOs, RTOs, and transmission providers.

It’s quite remarkable how the Federal Energy Regulatory Commission (FERC) has been able to pound a square peg into a round hole. With not much more than a wink and a smile, FERC has taken a depression-era law meant for monopolies — the Federal Power Act — and has made it serve double duty as a foundation for competitive power markets. Yet FERC’s reinterpretation, for all its good intentions, may prove inadequate in the long run to define and support full-fledged energy markets.

When the Connecticut Siting Council granted a certificate of environmental compatibility and public need approving the Cross-Sound cable in January 2002, it determined that the project would provide a public benefit and would not have an environmental impact constituting “sufficient reason to deny the application.” At the time of this writing, it is in operation pursuant to federal order, while opponents continue to try to shut down the cable. What happened in 2003 to delay the project, and how might the ongoing struggle affect similar projects proposed or under way?

A recent ruling puts the question squarely on the table: Can FERC overturn orders issued by the state public utility commissions that otherwise would stand in the way of its vision of regional transmission organizations with a standard market design?

Positions filled at Southern Co., Southwest Power Pool, Avista Corp., and others.

ISO New England wants to become a regional transmission organization. But just the idea — prior to any official filing at 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.

How will technicians prevent another major blackout? Fortnightly weaves the opinions of industry insiders on the keys to electric reliability with a cautionary tale from Connecticut to present solutions for what’s ailing the grid.

By accommodating loads with limited storage and deploying resources in a more sophisticated manner, grid operators could expand the range of reliability resources. Consider the electric water heater.