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Reliability Solutions Debated in RTO Talks
Discussion and debate over what a Northwest regional transmission organization (RTO ) might look like kicked into high gear in July with the October 15 deadline for filing a proposal with the Federal Energy Regulatory Commission (FERC ) looming ever closer. Significant progress was made on how to give power providers a way to bid for the privilege of using constrained transmission wires. Two issues, however, still have not been settled as of mid-August: how to maintain and improve the reliability of the system, and who would govern the new organization.
Two mechanisms are on the table to accommodate increasing traffic on the wires spurred by rising power demand. The first is a local responsibility model which relies on utilities and power plant owners to finance expansion of the system locally according to their needs. The RTO would help only with technical information and coordination. The second approach assumes local entities wouldn't react quickly enough, particularly where a prospective transmission enhancement would have multiple beneficiaries. Instead it gives the RTO the ultimate role to stimulate any new construction and pass on the costs to transmission users. Some fear this centralized approach might lead to long litigious arguments about who benefits and who pays for system enhancements.
A priority concern to the NW Energy Coalition and other environmental participants in the talks is that the RTO structure incorporate a FERC mandate that non-transmission solutions to reliability, including conservation, small renewable generation and power generation, be given equal weight with transmission-related solutions. Debate continues over which approach local or central is best for least-cost planning and evaluation to ensure the most prudent and efficient solutions are chosen. Another central question is whether the region's recent reluctance to embrace conservation means new transmission and power plant construction will become the default solutions to reliability concerns. Governance of the RTO will be a key.
Major transmission owners insist they should have stronger voting rights and more representation than other stakeholders in the RTO governing board. Owners argue that because their facilities will be turned over to the RTO, they need more influence operating the wires. Environmentalists and representatives of small customers counter their interests will not be served by a board dominated by members beholden to transmission company shareholders. Because transmission owners ultimately have the final say in submitting the RTO filing, the conflict will likely go before FERC for resolution.
Steven Weiss