By Kate Thomas
OGJ Online
HOUSTON, Mar. 23�John Marschewki, president of the Southwest Power Pool Inc., said the organization expects formal recognition by the Federal Energy Regulatory Commission as a regional transmission organization at the agency's March 28 meeting.
"We are on the consent agenda," Marschewski said at Houston Energy Expo. Southwest Power Pool, one of 10 regional reliability councils, filed in October to become an regional transmission organization (RTO) under FERC's Order 2000.
Under Order 2000, adopted in December 1999, FERC encouraged voluntary formation of regional transmission organizations. The federal oversight agency said larger regional organizations were needed to eliminate rate "pancaking"�the practice of billing a supplier of power several times as it passes through various control areas.
Based in Little Rock, Ark., SPP has provided regional security coordination and regional transmission administration for its 50-member organization. In the future as an RTO, Marschewski said the organization will provide service as a provider of last resort of ancillary services and settlement. It has allocated $19.2 million for a market settlement project scheduled to be rolled out in January 2002.
Congestion management will be a key concern going forward in the region served by SPP.
"We have constraints," Marschewski said, calling it "our biggest challenge. Share the pain" congestion management measures will be put in place June 1 that "may not make much economic sense," to get through the summer. By 2002, he said, SPP hopes to introduce locational marginal pricing.
Marschewski said SPP studies suggest a need for 22,000 Mw of new transmission service, representing significant transmission additions in the next 5 years. Some 11,000 Mw of new generation were scheduled last year to come on line in the region in the next 3 years. Marschewski said he expects the number to grow "significantly."
"We have identified six significant transmission additions needed in the region," Marschewski said. "Probably our biggest concern is transmission additions. That's a real challenge for us today."
