MISO

Two regional organized markets demonstrated the benefits of competition through the Regional Transmission Organizations/Independent System Operators this week. The Southwest Power Pool (SPP) unveiled major long-term transmission plans and the Midwest ISO (MISO) reported more than a billion dollars in market benefits over the past year.

Between 2006 and 2008, natural gas prices were peaking at historic highs, and critics of competitive markets for electricity were citing the resulting high electricity prices as an indicator that the markets had failed. No amount of factual data showing the linkage between natural gas fuel costs and electricity prices could quell the furor in certain quarters.

The independent market monitors for every Independent System Operator (ISO) and Regional Transmission Organization (RTO) in the country have once again found that organized markets are competitive, and provide economic benefits to consumers. The findings were based on detailed reports for 2009, and were highlighted by the Electric Power Supply Association.
 

A combination of hotter summers, an aging electrical grid and uneven adoption of smart grid technology has increased the need for electric infrastructure investment, according to a University of Minnesota research study cited by CNN reporter Thom Patterson.
 
COMPETE agrees significant investment is needed in our national grid to reach our nation’s sustainable energy goals and maintain electric reliability needs. But CNN missed an important opportunity to highlight how competitive electricity markets are helping ensure reliability and encourage innovation and investment while protecting consumers from the financial risk of poor or failed investment decisions.
 

Following the Senate’s confirmation last week of former Iowa utility regulator John Norris to a seat on the Federal Energy Regulatory Commission (FERC), we were encouraged to hear him say he would “work toward ensuring open and fair energy markets in which consumers, retailers and wholesalers can have confidence.” His prepared statement further noted challenges ahead including “minimizing the impact changes will have on consumers, ensuring adequate investment in upgrading and building new infrastructure and meeting our nation’s goals for reducing CO2 emissions.”