ISO

Finding an independent system operator (ISO) prerequisite to electric industry restructuring, the Wisconsin Public Service Commission (PSC) has issued a detailed set of "minimum standards" for developing and operating an ISO.

The PSC says that the ISO must function independently of generators and must operate the transmission system to protect consumers and sellers of power from anticompetitive use of the wires. In addition, the ultimate responsibility for safety and reliability must be vested in one entity at all times.

Stranded-cost recovery plus incentives for renewable energy.A New England utility executive told a U.S.

The California legislature had taken an interest in electric restructuring from early on in the debate. Through policy committees of the Assembly and Senate, it had signaled that the CPUC would need the blessing of the lawmakers before it would be allowed to pursue the ideas spelled out in the commission's Final Policy Decision. Moreover, the December 1995 decision had drawn a divided reaction. Some parties had sought relief from the outcome of the December 1995 order.

Early on in the debate, the legislature had signaled the commission that it would need the blessing of lawmakers to pursue its agenda.This past August, during the waning days of a two-year session, the California Legislature unanimously passed a landmark bill to deregulate the state's $23-billion electric utility industry.

The new law, known as "Assembly Bill (AB) 1890, largely reaffirms the broad outlines of the December 1995 Final Policy Decision issued b

a fortunate few, opening up competitive options even

in advance

of 1998.With a fountain pen and a flourish of promises, California Gov.

Public Utilities Fortnightly asked eight commissioners about the demands of restructuring and about an issue particular to their state.

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The Texas PUC has approved a plan creating the nation's first independent system operator (ISO) from the Electric Reliability Council of Texas (ERCOT). The ISO will be governed by an 18-member board, with three members each from IOUs, municipal utilities, electric co-ops and river authorities, transmission-dependent utilities, IPPs, and power marketers.

A key part of the ISO plan is an electronic transmission information network (ETIN), which ensures equal access to transmission system information, such as available transmission capacity, product offerings, and prices.

The California Public Utilities Commission (CPUC) has authorized Pacific Gas and Electric Co., Southern California Edison Co., and San Diego Gas and Electric Co. to guarantee notes totaling $250 million for loans to two trust funds to support the development of computer hardware and software for the state's proposed independent system operator (ISO) and power exchange (WEPEX), but commissioner Jesse J. Knight has dissented, worrying about cost control.

As noted in a parallel story ("PUC Loans Would Bolster ISO, Power Exchange," Headlines, p.

PECO Energy Co. has filed its "Open Market Plan" at the Federal Energy Regulatory Commission (FERC) for restructuring the Pennsylvania-New Jersey-Maryland (PJM) power pool. PECO is the only member not joining a majority PJM restructuring order filed July 24 with the FERC.

The plan proposes an independent system operator (ISO) and electric transmission service priced on a regional, postage-stamp basis. The wholesale market would be based on bilateral transactions, with a residual pool for hourly energy.

The California Public Utilities Commission (CPUC) has approved loan guarantees of up to $250 million to fund development of computer hardware and software to help the electric industry establish the independent system operator (ISO) and the Power Exchange (PX), both key components of the CPUC's proposed restructuring plan.

Pacific Gas & Electric Co. and Southern California Edison Co. each had asked for $112.5 million in loan guarantees; San Diego Gas & Electric Co. had asked for $25 million.