posted on Tuesday, August 23, 2005 6:05 PM
by
Tracy Davis
Negotiations Continue on BPA's Role in Pacific Northwest RTO
Following the Transmission Improvements Group's ("TIG") regional transmission proposal, made public earlier this month, BPA solicited public comments on whether it should support and join the opposing Grid West proposal, adopt the TIG alternative, push for a combination of the two, or choose to remain separate from the formation of a Pacific Northwest RTO altogether. TIG comprises several northwestern electric utilities. In order to be considered, comments are due to BPA by September 9, 2005.
Grid West's proposal focuses on the creation of an independent entity that would manage and control transmission in the region, acting as the central scheduling entity, and serve as the planning reliability and transmission authority for the entire system. Although FERC has clarified that participation in an RTO by non-jurisdictional transmission utilities does not subject those utilities to additional FERC oversight, BPA has expressed concern about joining Grid West's proposed RTO because its statutory obligations may conflict with FERC requirements. BPA's concerns in this regard should be attenuated by provisions of the recently enacted Domenici-Barton Energy Policy Act of 2005 that authorize BPA and other federal power marketing administrations to join regional transmission organizations.
As an alternative to Grid West, TIG has proposed a restructuring of the transmission system (and improvements to the system) through multilateral long-term contracts while maintaining the autonomy and authority of individual transmission system owners. This proposal would address regional transmission issues incrementally. TIG claims that because it is not creating a new institution, FERC's jurisdiction will not come into play. Critics, however, claim that the TIG's proposal lacks depth and fails to explain how independent power producers will fit into the system, or how Intermountain west issues and dealings with Canada will be handled.
The Regional Representative Group, which includes representatives from regional public and investor-owned utilities, BPA, and independent power producers, is expected to vote September 30, 2005, on whether Grid West's development should move forward. [NEW MATTER]