Subject: rto orders - grid south , se trans , spp and entergy
the southeast rto orders are out and have followed through with what we expected from the discussion at the ferc meeting .
the spp and entergy rto proposals have been rejected because they fail to satisfy the scope and configuration requirements of order no . 2000 . the commission notes that the required discussions between spp and entergy and its neighboring rto / tos has led to no increase in the original scope and configuration . the filings by spp and entergy were brief , indicating only a lack of interest by other rtos or utilities in joining to enlarge scope ; they failed to specify any details of the talks , what changes could be made or what could be fixed to accomodate combination with other rtos . the order states that the commission favors the development of large , regional transmission organizations reflecting natural markets . the commission indicates that they favor four rtos - ne , se , mw and west . therefore the order requires the participants in spp and entergy to participate in settlement discussions as set out in the mediation order . note that these meetings will start next tuesday , july 17 before a ferc alj .
the southern company rto is also found by the ferc to fail the scope characteristics of order no . 2000 . the order finds that southern ' s approach to focus on mous and seams issues with its neighbors is inadequate . the order states , " we reiterate : the commission ' s goal is to have a single rto in the southeast , and to have that single rto operational as soon as possible . " the commission recognizes that start - up costs in forming a larger rto may be more , but that over the longer term , large rtos will foster market development , will provide increased reliability and will result in lower wholesale electricity prices . the order therefore directs the parties to the mediation as stated above .
the grid south participants are also directed to the mediation which is starting on next tuesday . it is a lengthier order with more details on other aspects of rtos , including independent board requirement , congestion managment , interconnection procedures , planning process and cbm . therefore , i am attaching a summary of the order . one of the important findings of the order is that gridsouth is not sufficiently independent ; the applicant tos are making policy decisions that should be made by an independent board . therefore , the order requires gridsouth to install an independent board and file a compliance filing within 90 days .
if anyone wants copies of the orders , let me know .