MPUC Rules on ISO-NE
Commission Directs Maine Utilities to Continue to Aggressively Pursue Reforms in the Management of the Regional Grid
June 12, 2009
THE REFORM PROCESS HAS BEGUN BUT NEEDS TO CONTINUE
Maine Public Utilities Commission
News Release
FOR IMMEDIATE RELEASE
AUGUSTA, Maine – The Maine Public Utilities Commission today directed Maine’s two largest utilities to continue to aggressively pursue reforms of their relationship with the operator of the regional electricity transmission system, ISO-New England (ISO-NE) but allowed an automatic two-year renewal of the arrangement with ISO-NE to go forward.
In January of 2009, the three Commissioners had decided that the status quo was inadequate for Maine, for reasons ranging from inequitable cost allocations to poor representation of consumer interests in ISO-NE’s decision-making processes. The Commission also found, however, that there were components of the ISO-NE structure which do benefit Maine’s energy markets and its consumers, including operational control of the New England grid, market design and operation, and development of demand response programs. Because the utilities were not required to give notice of leaving the ISO before August, the Commission instead directed Maine’s two largest utilities to aggressively pursue reforms.
The Commission conducted proceedings to assess the progress of negotiations and to consider whether to direct the utilities not to renew their existing agreement with ISO-NE. Two parties also sponsored a study of whether expanding the scope of the Northern Maine Independent System Operator is a feasible and beneficial alternative to membership in ISO-NE.
The Commission decided today that Maine ratepayers are best served by allowing the agreement with ISO-NE to automatically renew for a two-year term. In doing so, the Commission concluded that the status quo with the reforms achieved to date was a superior vehicle to achieve the state’s energy objectives than the alternatives presented and that such alternatives would not provide cost savings to Maine’s ratepayers. The Commission noted that while certain reforms have been achieved since this past January, the reform process needs to continue. Chairman Reishus stated “Reforms are only in the beginning stage. There is much work to be done.” The Commission outlined further steps needed to assure that ISO-NE does a better job of serving the public interest.
For more information or to schedule an interview with Chairman Reishus, please call Lisa Fink or Chuck Cohen at 207-287-3831.
