The US Federal Energy regulatory Commission has issued a series of orders that fundamentally restructures the US transmission system, calling for the development of one regional transmission organisation for each region – Northeast, Midwest, Southeast and Western. An immediate effect is the opening of mediation to combine New York ISO, NEPOOL, PJM and PJM-West into a single RTO; and Southern Companies, Southwest Power Pool, Entergy and GridSouth into a single RTO in the Southeast. The Commission allowed Southwest Power Pool the option of pursuing involvement in an RTO in the Midwest; and encouraged without compelling it that the GridFlorida RTO entities engage in the Southeast RTO negotiations.
These orders represent a fundamental shift in the FERC’s RTO formation policy, from its pattern of supporting the status quo towards a much more active posture in shaping the USA’s national energy policy.
The FERC has clearly run out of patience with the slow pace of the voluntary process. In its orders it openly expressed disappointment witht he lack of progress being made in various exising RTO procedures. By forcefully asserting its control over the process the Commission is showing that it will aggressively pusue its goal of having large scale region wide RTOs in place and operational by its target date of 15 December.
