Alliance RTO submits new FERC filing

The Alliance Regional Transmission Organization sponsors said Friday they have submitted to the Federal Energy Regulatory Commission (FERC) a filing that will comply with all issues raised in FERC's conditional approval orders. The companies are seeking approval to begin operating on or before Dec. 15, 2001.


The Alliance Regional Transmission Organization (RTO) sponsors said Friday they have submitted to the Federal Energy Regulatory Commission (FERC) a filing that will comply with all issues raised in FERC's conditional approval orders.

The companies are seeking approval to begin operating the RTO on or before Dec. 15, 2001. The RTO sponsors said the filing eliminates multiple transmission access charges, or rate "pancaking." The proposed rate applies a single transmission access charge in the form of a zonal, or "license plate," rate for all transactions that deliver power inside the Alliance RTO, and a single, region-wide "postage stamp" rate for all transactions that deliver power outside or through the Alliance RTO, sponsors said.

The proposed rates will also accommodate the various state retail competition programs in which the Alliance transmission owners must participate. Sponsors said rates are also intended to minimize cost shifts among companies and customer classes.

The Alliance companies propose to create the Alliance RTO in the form of a transco, that will be controlled and managed by a managing member, an independent entity with no affiliation with a market participant. The filing includes a 5% ownership maximum by any market participant, and a 15% ownership maximum by any class of participants in the Alliance RTO.

Sponsors said this will insure the independence requirements of both FERC orders, with respect to the Alliance RTO, and Order 2000 are met.

The filing also includes a proforma inter-RTO coordination agreement that addresses seams issues, including security coordination, market monitoring, regional planning, pricing reciprocity, and transmission capability calculations.

The Alliance RTO companies include American Electric Power Co. Inc., CMS Energy Corp. unit Consumers Energy Corp., DTE Energy Co. subsidiary Detroit Edison Co., FirstEnergy Corp., and Dominion Resources Inc.'s Virginia Power subsidiary. Together they own 43,300 miles of transmission lines in Ohio, Pennsylvania, Virginia, West Virginia, Michigan, Indiana, North Carolina, Kentucky and Tennessee.

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