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Enron Mail |
The Federal Energy Regulatory Commission rejected two key elements of Southern Company Services, Inc.'s proposed Regional Transmission Organzation (RTO) and encouraged the company to explore joining neighboring utilities in an RTO for the Southeast. The Commission did not act on other issues raised by Southern. Southern's proposal for a for-profit gridco (grid company) that would include only new wholesale transmission services and have the benefits of certain rate incentives going to others rather than the RTO operator are inconsistent with FERC's RTO policy, the Commission said. Under Southern's proposal, existing owners' transmission facilities related to bundled retail service or native load would not be under the gridco's control. As a result, the vast majority of total transmission load would not be under the RTO's tariff, operation or direction. The RTO rule requires all transmission facilities operate under the transco. In addition, Southern could not plan, design and operate a regional grid in a manner that maximizes efficiency if the transco controlled only a small part of the RTO load, the Commission said in rejecting Southern's proposal. As an alternative to filing a revised RTO proposal, the Commission asked that Southern consider joining neighboring utilities in an RTO in the Southeast. The Commission directed Southern to file a report by July 13, 2001, on progress in forming a Southeastern RTO.
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