For More Information, Please Contact:
Chrys Wilson, Manager
Office of External Relations
Maryland and District of Columbia Commissions
Applaud FERC on Re-evaluating its Process
Baltimore, MD – The Maryland and District of Columbia Public Service Commissions applaud the Federal Energy Regulatory Commission's ("FERC") Order delaying the formation of a super regional transmission organization for the Northeastern United States and focusing on a detailed deliberative process to evaluate the merits of merging the three independent system organization ("ISO's") which operate the electric transmission grid from Maine to Washington, D.C. On 11/7/01 FERC issued an Order (Docket No. RM01-12-000) providing general guidance on how they intend to proceed on Regional Transmission Organization ("RTO") filings and other related matters.
FERC's ruling responds favorably to many of the concerns raised by both the Maryland and District of Columbia Commissions in their several filings before FERC on this issue. The FERC will take several immediate steps to move the RTO process along: (1) a broader definition of how certain RTO functions will be fulfilled; (2) better state/federal dialogue; (3) further cost/benefit studies; (4) identification of areas where standardization is called for; and (5) creation of a timeline for RTO implementation. Of particular interest to the Commissions is ensuring that accurate legitimate cost benefit analyses are conducted in order to verify whether benefits will actually accrue to citizens prior to merging the three electric grids in the Northeast.
The Maryland and District of Columbia Commissions commend FERC's actions as being extremely useful in going forward to determine the reasonableness and appropriateness of a super Northeastern RTO. The Maryland and District of Columbia Commissions accept FERC's invitation to work with it in evaluating appropriate cost benefit analyses and as FERC indicates to determine "whether and, if so, how RTOs will yield customer savings and to provide a quantitative basis for the appropriate number of RTOs."