ComEd pulls out of MISO to join Alliance RTO
"We are naturally disappointed that they have made this decision," said a spokesperson for MISO. The MISO will carefully review the implications of what such a withdrawal would have on the reliability of the electric transmission system in the Midwest.
Com Ed expects to be part of an operating Alliance RTO by December 15, 2001. Alliance RTO members already include American Electric Power (AEP), Consumers Energy, Detroit Edison, Dominion Virginia Power and First Energy.
"Joining the Alliance RTO will provide us, and our customers, with better access to electric supplies and offer the potential for cost savings as the industry continues to restructure," said Betsy Moler, Senior Vice President of Federal Government Affairs and Policy of Exelon Corporation, ComEd's parent.
Moler said the recent merger of ComEd's former parent company with Philadelphia-based PECO Energy to form Exelon created the opportunity and the responsibility for ComEd to re-evaluate its membership in MISO. The MISO agreement includes provisions allowing transmission owners to withdraw upon an acquisition, merger or restructuring, subject to regulatory approval.
"In the wake of our merger, it is increasingly clear that our primary customers and suppliers are in the east, our strongest interconnections are to the east, and our biggest growth is likely to occur in the east," said Moler. "The Alliance is developing a strong presence in our critical markets, while MISO has developed primarily to the north and west of our service territory." Moler added, "We believe that MISO can continue to expand in those areas; ComEd's withdrawal should not prevent that growth." ComEd intends to fully meet its obligations to the MISO as a withdrawing transmission owner.
The Alliance offers other advantages to ComEd as well, according to Moler. The Alliance's "transco" structure provides the best opportunity for the efficient operation and continued growth of the transmission system in ComEd's region. Joining the Alliance should ultimately result in lower transmission rates and greater access to robust power markets for ComEd and its transmission customers than if ComEd remained in the MISO.
Moler noted that ComEd's membership in the Alliance will not only benefit the company; it will also promote the goals of FERC's Order No. 2000 by creating a single large Regional Transmission Organization that stretches from the Mississippi River to the Allegheny Mountains and, in some places, as far as the Atlantic Ocean.
"We're pleased that Commonwealth Edison will join the Alliance RTO," said Stan Szwed, Chairman of the Alliance Management Committee and Vice President of FirstEnergy Corp. "With Commonwealth Edison and the recent announcements by Illinois Power and Dayton Power & Light, our growing RTO will have 53,600 miles of transmission lines serving 37 million people within 156,000 square miles of ten contiguous states. Our combined RTO clearly has the scope and size to ensure reliable and efficient operation of the transmission network, while providing non-discriminatory access to all users."
In its notice, ComEd reaffirmed its responsibility for financial obligations to the Midwest ISO. The spokesperson noted that ComEd, in announcing its decision, pointed out the potential for Midwest ISO's growth to the north and west, and that it is ComEd's opinion that its withdrawal should not affect that growth.
By Stephen Heiser
Managing Editor, ElectricNet