May 13, 2002 — To speed the implementation of a single energy market in the Midwest, the Midwest Independent Transmission System Operator Inc., PJM Interconnection, Southwest Power Pool, Inc. and TRANSLink Transmission Company’s participants announced Monday the execution of a Memorandum of Cooperation (MOC).
The MOC outlines a collaborative process to identify and address issues that will allow for a more efficient transition to a joint and common energy market.
In January 2002, MISO, PJM and SPP announced a Letter of Intent to develop a joint and common wholesale market for electricity producers and consumers in all or parts of 26 states, the District of Columbia and the Canadian province of Manitoba. Since then, the three organizations, along with hundreds of industry stakeholders, have been actively engaged in developing the details of a phased implementation plan for the common market. TRANSLink, a proposed independent transmission company, will serve customers in the Northern Plains and southwest portions of the MISO-PJM-SPP footprint, as well as in the service territory of Public Service Co. of Colorado, an Xcel Energy operating company.
“TRANSLink’s efforts toward facilitating the expeditious creation of a reliable, robust Midwest energy market will enable transmission customers throughout the Midwest to begin realizing the benefits of a single energy market,” said James P. Torgerson, Midwest ISO president and chief executive officer.
“This MOC is another example of our organizations’ commitment and focus to bringing additional marketplace value to our customers,” said Phillip G. Harris, PJM president and chief executive officer. “The goal is to provide a template for independent transmission companies to effectively integrate into a standardized market in a manner that serves the needs of the public and the individual states and governmental entities, while benefiting the economies in the regions encompassed by the market.”
“We’re pleased to offer our reliability tools and knowledge of the regional transmission systems for this effort,” said Audrey Zibelman, Xcel Energy vice president of transmission and chair of TRANSLink’s executive committee. “In doing so we hope to help facilitate a positive transition to a standard market.”
The MOC outlines several guiding principles, including:
* that the implementation of a robust, non-discriminatory single wholesale energy market while minimizing the costs for implementation will facilitate wholesale markets across the large MISO-PJM-SPP regions;
* that the process of working together toward the development of the standard market will be fully consistent with the safe and reliable operation of the electric power grid;
* that the participating organizations will work cooperatively to meet the needs of their respective regions;
* that the MOC is one component of MISO, PJM and SPP’s efforts toward developing the standard market across all the control areas; and
* that the participants commit to developing a role for independent transmission companies that meets independent transmission companies’ business needs while ensuring the successful operation of a robust, competitive wholesale market.
MISO, PJM, SPP and TRANSLink will now begin identifying and evaluating issues that need to be addressed in order to cost-effectively implement a standard market design within the TRANSLink region.
The FERC approved the Midwest ISO as the nation’s first Regional Transmission Organization on Dec. 20, 2001. On Feb. 1, 2002, the Midwest ISO began providing regional transmission service for the movement of bulk power in the Midwest ISO footprint.
The Midwest ISO is responsible for evaluating and coordinating requests for access to the regional power grid on a non- discriminatory basis and for ensuring the reliable operation of the wholesale electric transmission system.
When the Midwest ISO’s pending merger with the Southwest Power Pool is finalized later this year, the organization will operate an interconnected transmission system encompassing more than 120,000 megawatts of generation capacity over 20 U.S. states and 1 Canadian province. Visit Midwest ISO at www.midwestiso.org
PJM, the country’s first fully functioning regional transmission organization, operates the world’s largest competitive wholesale electricity market and North America’s largest power grid. The company currently coordinates a pooled generating capacity of more than 71,600 megawatts and operates a wholesale electricity market with more than 200 market buyers, sellers and traders of electricity.
PJM has administered more than $9 billion in energy and energy service trades since the regional markets opened in 1997. More than 70 nations have sent delegates to PJM to learn about the market model and the operation of the grid in the mid-Atlantic states, including more than 25 million people in all or parts of PA, NJ, MD, DE, OH, VA, WV and the District of Columbia. With the April 1, 2002, addition of PJM West, for the first time nationally two separate control areas now operate under a single energy market and a single governance structure across multiple North American Electric Reliability Councils. Visit PJM at www.pjm.com .
Southwest Power Pool, Inc. was founded in 1941 to provide reliable power to industries manufacturing for the military. SPP was one of the original regional councils of the North American Electric Reliability Council and continues in that capacity today. The company began Open Access Same-time Information System administration in 1995 and regional tariff administration in 1997. SPP began providing control area scheduling service this year.
TRANSLink is an independent transmission company proposed by Alliant Energy, Madison, Wis.; Corn Belt Power Cooperative, Humboldt, Iowa; MidAmerican Energy Co., Des Moines, Iowa; Nebraska Public Power District, Columbus, Neb.; Omaha Public Power District, Omaha, Neb.; and Xcel Energy, Minneapolis. TRANSLink recently received conditional approval by the FERC to operate as an ITC in the regions it serves. TRANSLink would oversee 30,000 miles of transmission lines linking generators producing 35,000 megawatts of electricity. The company would provide transmission services to entities with approximately 6.9 million customers in 14 states, making it one of the largest transmission companies in the nation. Visit TRANSLink at www.translinktc.com