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RTO Markets Expand with Successful Integration of AEP, DP&L into PJM and AmerenIP’s Membership in Midwest ISO

New milestones in reliability, economic benefits and market efficiency were achieved recently with the integration of two utility transmission systems into a regional transmission organization (RTO), and the addition of a third utility into another RTO. The consensus of all the senior executives associated with these actions was that this continued progression toward organized competitive markets and RTOs was a major plus for consumers.

The integration of American Electric Power’s (AEP) and Dayton Power & Light’s (DP&L) generation and transmission operations into the PJM Interconnection RTO, as well as Illinois Power Co.—now operating as AmerenIP—joining the Midwest Independent Transmission System Operator (Midwest ISO) last week, signal that regional independent grid operators are “moving ahead, delivering improved reliability and tangible economic benefits,” Federal Energy Regulatory Commission (FERC) Chairman Pat Wood said.

AEP Chairman, President and CEO Michael G. Morris said, “AEP’s membership in PJM will provide economic benefits and help improve transmission system reliability for customers throughout the 12-state PJM region.”

Speaking about PJM, DP&L President and CEO James V. Mahoney said, “Now that we are a fully integrated member, we are excited about the future as we work within the PJM system to provide our customers with reliable, cost-effective power.”

With the integrations, PJM now has a peak demand of nearly 108,000 megawatts and an expanded market of 44 million people. Customers in the region will now have much greater access to the lowest-cost sources of supply. Further benefits will accrue through greater market liquidity and price transparency, allowing utilities and other suppliers to manage their risks more efficiently.

Speaking on the changes in the Midwest ISO, President and CEO James P. Torgerson said, “The inclusion of AmerenIP creates a more continuous transmission system throughout the Midwest region that benefits our members and their customers.”

David Whiteley, senior vice president, energy delivery for Ameren agreed, and said, “… with control of our transmission assets consolidated under the Midwest ISO, Ameren will be able to more efficiently manage our portion of the grid.”

For more information, contact EPSA’s Mark Bennett at mbennett@epsa.org.