PowerFacts

Regulators Continue to Find Organized Markets the Best Option for Consumers

Regulators Continue to Find Organized Markets the Best Option for Consumers

Commissioners from the Federal Energy Regulatory Commission (FERC) and individual state utility commissions continue to consistently point out the numerous benefits provided by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). Policymakers have cited numerous benefits of RTOs/ISOs that ensure consumers are provided with reliable and affordable electricity, including improved operational control of the electricity grid, expansion of supply options, and development of demand response programs. Recent activities have simply underscored these benefits with the expansion of the Midwest ISO to include MidAmerican Energy Company, the state commissions of the Entergy footprint exploring the possibility of entering the utility into the Southwest Power Pool and the Maine Public Utilities Commission's decision to order its utilities to remain in ISO New England. Policymakers at both the federal and state levels have spoken out on the benefits RTOs/ISOs provide to consumers and continue to affirm the importance of well-functioning organized electricity markets.

FERC Commissioners Speak Out in Support of Organized Markets

"Membership in organized regional power markets produces important benefits for consumers, such as by expanding electricity supply options through increased access to renewable energy resources and improving operating performance." - Chairman Jon Wellinghoff, FERC Press Release, 7/16/09

"The Commission has frequently addressed the benefits that organized wholesale electric markets bring to consumers, including improved operating performance. Organized markets also provide important opportunities for consumers to garner benefits from demand response. In addition, the organized markets expand energy supply options through increased access to renewable energy resources, such as the strong wind power resources that have and will be developed in the MidAmerican service territory. With such benefits in mind, I am pleased to support this package of orders that moves MidAmerican closer to integration in the Midwest ISO." - Chairman Jon Wellinghoff, Statement on MidAmerican Integration into the Midwest ISO, 7/16/09

"The orders and the statements of my colleagues reflect the longstanding consensus here in support of organized markets hopefully more entities see the wisdom of FERC regulated markets and we can proceed again consistent with the path we've had for some time. I think there're a lot of folks that talk about regulatory certainty and certainly our commitment to organized markets is an example of the comfort that the regulated industry can take from FERC policies." - Commissioner Marc Spitzer, FERC Monthly Sunshine Meeting, 7/16/09

"[With MidAmerican's integration into the Midwest ISO], reliability is going to improve. The Midwest ISO's security constrained economic dispatch will address constraints more quickly and more economically and will avoid the TLR mechanisms that are currently used in the MidAmerican territory... MidAmerican will now participate in MISO's ancillary services market which will provide greater flexibility and increase overall system reliability in the MISO region." - Commissioner Suedeen Kelly, FERC Monthly Sunshine Meeting, 7/16/09

"This has been a banner year for organized markets when you consider that we've had some positive developments in the Southeast, we've had the Nebraska Public Utilities join the Southwest Power Pool, we've had a successful launch of the California MRTU market, and we've had some other positive events in the MISO markets." - Commissioner Phillip Moeller, FERC Monthly Sunshine Meeting, 7/16/09

State Commissions Confirm Benefits of RTOs and ISOs

"The Commission decided today that Maine ratepayers are best served by allowing the agreement with ISO-NE to automatically renew for a two-year term. In doing so, the Commission concluded that the status quo with the reforms achieved to date was a superior vehicle to achieve the state's energy objectives than the alternatives presented and that such alternatives would not provide cost savings to Maine's ratepayers." - Maine PUC Press Release, 6/12/09

"RTOs serve an important role in administering spot electricity markets, dispatching generating resources efficiently, ensuring system reliability, and developing regional transmission plans... It is crucial that the Commission and the State of Ohio encourage Ohio utilities to take advantage of RTO membership for the benefits that it can provide." - Office of the Ohio Consumers' Council before the Public Utility Commission of Ohio, Case No. 09-90-EL-COI, 5/26/09

"Regional operations and markets were expected to yield operational efficiencies through a single entity's ability to optimize generation dispatch, regionalize transmission control and coordinate transmission planning across a broad region the Midwest ISO provides the expected efficiencies -- primarily by increasing operational reliability, providing access to more generation resources and mitigating factors that increase service cost... As the Midwest ISO operators have gained more experience with the system, many start up problems have been addressed and overall operation of the system has improved." - Midwest ISO Impact Working Group Report to the Public Service Commission of Wisconsin Concerning Participation in Regional Transmission Organizations, February 2008

CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660

EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.