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Status of RTO Formation - CAISO Perspective -. Terry M. Winter President and Chief Executive Officer CAISO. November 1, 2001. Background. CA ISO filed at FERC for certification as an RTO on June 1, 2001; CA ISO believes that it satisfies the basic characteristics and requirements of an RTO;

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Status of rto formation caiso perspective

Status of RTO Formation- CAISO Perspective -

Terry M. Winter

President and Chief Executive Officer

CAISO

November 1, 2001


Background
Background

  • CA ISO filed at FERC for certification as an RTO on June 1, 2001;

  • CA ISO believes that it satisfies the basic characteristics and requirements of an RTO;

  • CA ISO requests that FERC recognize the need for California to remain a stand-alone RTO until dysfunctions in the California market can be remedied.


Inter-Regional Functions

Achievable Near-term Regional Functions

The CA ISO supports efforts to quickly establish the principles and structure for West-wide:

  • Market Monitoring

  • Inter-regional or “Interstate” Transmission Planning

  • OASIS (ATC and TTC);

  • Scheduling Practices


Inter-Regional Functions

Market Monitoring

The CA ISO believes that, for market monitoring to be effective, it must be done on a coordinated regional basis

  • The California experience - regional and sub-regional markets interact, providing opportunities for gaming and arbitrage between markets

  • Clear and appropriate information disclosure and exchange arrangements can ensure local oversight


Inter-Regional Functions

Inter-State Transmission Planning

The CA ISO believes that planning for the high-voltage (“interstate”) transmission system must be done on a regional basis

  • Supports Western Governors Association initiative

  • Supports Western Electricity Coordinating Council coordination efforts as a necessary transition mechanism with three RTOs

  • Path 15 - an example of TX planning’s future?


Inter-Regional Functions

OASIS and TX Scheduling

The CA ISO supports the development of a single OASIS site where Market Participants can observe, reserve and obtain TX service

  • ATC and TTC should be calculated on a coordinated regional basis

  • Market Participants should be able to go to single OASIS node, even with three RTOs

  • Transmission scheduling practices should be seamless across the West


Next Steps

Three RTOs, One Market

The CA ISO supports efforts to get three RTOs up and running in the West. Next steps:

  • Focus on Inter-Regional Coordination efforts: pricing reciprocity, market monitoring, regional planning;

  • Ensure market and systems compatibility (TX rights, EMS);

  • Develop and refine standard or compatible market products (FTRs, Ancillary Services)


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