US NERC regional councils should mirror RTOs, companies say

Washington  (Platts)--2Aug2004

The regional groups that oversee compliance with reliability rules should be
changed so that they closely mirror the boundaries of regional transmission
organizations, companies told the North American Electric Reliability Council
last week. The Electric Power Supply Assn. and several other companies gave
their assessment of how NERC's regional councils should be changed to comply
with the final report on the Aug 14, 2003, blackout. In comments filed July
30, EPSA and others noted that independent system operators and RTOs often
perform reliability functions of the regional councils, and that some RTOs
operate in the boundaries of multiple regional councils.

Exelon, Mirant and others asserted that regional reliability councils should
be independent of all market participants and that their boundaries should
align with those of RTOs or ISOs where such systems are operating. The
integration or RTOs and regional reliability councils "should produce
significant cost savings to be passed on to consumers," Calpine told NERC.
NERC's board is scheduled to receive an initial report on the role of the
regional councils later this month.

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