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Generator/Supplier Perspective on the Proposed New England RTO. Peter D. Fuller Mirant October 24, 2003. Generators and Suppliers Support:. A permanent, independent system operator Meeting Order 2000 Characteristics and with full and exclusive authority over Order 2000 functions

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generator supplier perspective on the proposed new england rto

Generator/Supplier Perspectiveon the Proposed New England RTO

Peter D. Fuller

Mirant

October 24, 2003

generators and suppliers support
Generators and Suppliers Support:
  • A permanent, independent system operator
    • Meeting Order 2000 Characteristics and with full and exclusive authority over Order 2000 functions
    • Responsible for market and tariff design
    • Independent of Market Interests
    • Accountable to stakeholders
slide3
Regional Transmission Organizations that span historical regional market boundaries
  • Mission to design and administer efficient and sustainable markets
independence
Independence
  • TOA compromises ISO’s independence and authority on market and tariff design (rate design, cost allocation, generator interconnection)
  • TOA compromises ISO’s independence on operational control (outage scheduling and coordination)
  • Governance compromises ISO’s independence on market design (“jump ball”)
other issues
Other Issues
  • Separate billing will increase overall costs
  • ITC functions are hard-wired and become even firmer over time
  • TOA and OATT are under separate control and separate standards at FERC; divergence is all but inevitable
other issues continued
Other Issues, continued
  • Tariff and Market Participant Service Agreement do not advance the efficiency or sustainability of the market design
  • Proposal is limited to New England only
way forward
Way Forward
  • NEPOOL has rejected the proposal
  • NEPOOL has recommended FERC mediation/settlement
  • To succeed, an RTO proposal needs stakeholder support