FERC Filings
EPSA's Motion to Intervene and Comment on Blementhal's ISO-NE Complaint
Summary of Complaint
On September 12, Connecticut Attorney General Richard Blumenthal filed a Complaint on behalf of the above-named Connecticut Parties to amend ISO New England’s Market Rule 1. While the Complaint intends to amend a single market rule, it suggests that competition in New England should cease altogether and requests that the state of Connecticut return completely to cost-of-service regulation, designating all generation facilities in the region as Reliability Must Run (RMR) resources.
Attorney General Blumenthal contends that, in Connecticut, both a market-based system and a cost-of-service/RMR system exist. He states that customers do not reap any benefits from this system because they have to pay the highest prices possible under regulated cost-based RMR agreements unless generators can make more money by choosing to rely on market-based rates. Attorney General Blumenthal calls the current market regime “failed” and refers numerous times to competition in New England as “make-believe”. He continually asserts that Connecticut customers have paid more that $445 million more to competitive generators under a market-based system than they would have under cost of service.
Attorney General Blumenthal asserts that the Commission may rely upon traditional cost-of-service regulation or, in the alternative, a regime of market-based rates.” However, to rely on market based rates, the Commission must “first make an affirmative finding based upon empirical evidence that competition in electric markets is delivering customer benefits.” The Attorney General believes that competition is not likely to exist in Connecticut with current transmission constraints. His solution is to place all generating units into the RMR category. Attorney General Blumenthal explicitly states that his goal in filing this Complaint is for FERC to order ISO New England to amend Market Rule 1 “to ensure that all electric generation facilities have been designated as an RMR Resource or are otherwise determined by ISO-NE as necessary for reliability and must apply for cost-of-service compensation.” The Attorney General calls for an expedited change to Market Rule 1 and asserts that the Commission would be violating the Federal Power Act if it allowed the duality of competition and RMR contracts to continue in New England.