Alliance RTO files FERC papers

The Alliance Regional Transmission Organization said it has filed documents with the US Federal Energy Regulatory Commission that will eliminate multiple transmission charges�known as 'pancaking'�among transmission systems within the Alliance RTO.

Jun 15th, 2000


The Alliance Regional Transmission Organization (Alliance RTO) said it has filed documents with the Federal Energy Regulatory Commission that will eliminate multiple transmission charges�known as "pancaking"�among transmission systems within the Alliance RTO.

In addition, Alliance said it has committed to addressing all outstanding FERC issues with respect to formation of a regional transmission organization. These issues include independence, pricing, and configuration and will be part of a filing to be submitted within the next few months, according to the statement.

The Alliance companies have favored an independent transmission company (transco) structure and have agreed to limit active ownership in the transco to 15% for any class of market participant. However, Consumers Energy Corp. continues to reserve the right to pursue its alternative governance structure through appropriate legal channels, the statement said.

The companies will continue to develop agreements for working with adjoining RTOs in order to facilitate smooth transactions between systems for buyers and sellers, Alliance said.

"We are confident that the steps we've outlined in this document will address all of FERC's concerns so that we may move forward with establishing this important transmission organization," said Stan Szwed, FirstEnergy Corp. vice-president and chairman of the Alliance management committee. He said the organization plans to begin operation with FERC's support by Dec.15, 2000.

The Alliance companies include American Electric Power Co., Consumers Energy, Detroit Edison Co., FirstEnergy, and Virginia Power. Together they own 43,300 miles of transmission lines in nine contiguous states, including Ohio, Pennsylvania, Virginia, West Virginia, Michigan, Indiana, North Carolina, Kentucky, and Tennessee.

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