Did You Know

Illinois Commerce Commission: Delaying Regional Transmission Organizations, Wholesale Power Market Platform Will Hurt Consumers

In a mid-September letter to Sen. Richard Durbin, D-Ill., the Illinois Commerce Commission strongly urged him to support the Federal Energy Regulatory Commission’s (FERC) initiatives to strengthen regional competitive electricity markets and boost system reliability as Congress works through this year’s energy legislation.

The commission voiced its clear preference for mandatory regional transmission organizations (RTOs) and for no delay in implementing FERC’s proposed Wholesale Power Market Platform.

“This letter opposes any delay in FERC’s efforts to develop rules governing the wholesale electricity market and any action that would make participation in a regional transmission organization voluntary in the Electricity Title of the Federal Energy Bill that is before the Conference Committee on the Energy Policy Act of 2003,” the commissioners said.

According to the letter, such a delay would hurt Illinois consumers.

“An across the board delay to FERC’s efforts will result in several unintended consequences, such as hampering the ability of states to attract much needed investment to meet generation and transmission infrastructure needs,” the commission said.

“In our case, the FERC’s Standard Market Design proposal and subsequent Wholesale Power Market Platform is essential to promoting Illinois’ competitive wholesale market, which is the foundation for our successful retail market…. We cannot continue to move our retail market forward unless there is healthy competition from the wholesale power market,” the letter continued.

Finally, the commissioners warned that any delay imposed by Congress will thwart necessary improvements in the electricity grid.

“Effective well-functioning regional transmission organizations and independent system operators are necessary for the creation of well-designed competitive regional markets,” the commissioners said.

“Making participation in a RTO voluntary will result in the balkanization of the wholesale market and transmission power, which will stifle improved reliability and needed investment in the electricity grid and will invite market manipulation…. In sum, we ask that you oppose any provision in the Federal Energy Bill that would delay the creation of well-designed regional markets and would make RTO participation voluntary.”

For more information, contact EPSA’s Gene Peters at gpeters@epsa.org or Andrea Spring at aspring@epsa.org, or call (202) 628-8200.