FERC last Wednesday ruled that a proposal to form a regional transmission organization (RTO) covering a Pacific Northwest footprint known as RTO West will not only meet the requirements of the agency’s RTO-related Order 2000 — with some modifications and further development of certain details — but can also provide a basic framework for a standard market design for the West.

“This one is pretty much best in class,” FERC Chairman Pat Wood said at the Commission’s regular agenda meeting. He said the RTO West proposal could be used by FERC as a solid template in evaluating regional grid operation proposals in other parts of the country.

Specifically, the agency conditionally signed off on a Stage II filing made by participants in RTO West. “I’m pleased that the effort that has been put into [RTO West] here now can move to another level to conversion to a tariff [and] to operationalizing what works here,” Wood said.

The RTO is being proposed by a coalition of utilities in the Pacific Northwest and British Columbia. The coalition includes Avista Corp., Bonneville Power Administration, British Columbia Hydro and Power Authority, Idaho Power, Montana Power, Nevada Power Co., PacifiCorp, Portland General Electric, Puget Sound Energy and Sierra Pacific Power.

Several members of RTO West have also proposed a for-profit independent transmission company (ITC) called TransConnect LLC. The ITC would own and operate the interstate transmission facilities of Avista, Montana Power, Nevada Power, Portland General, Puget Sound and Sierra Pacific, with TransConnect participating in RTO West as a single transmission owner. FERC did not take action on the TransConnect proposal on Wednesday, but Wood said he expects the agency to issue a notational order on the ITC proposal between now and FERC’s next meeting on Oct. 9.

Also still pending at the agency is another western RTO known as WestConnect, which includes Arizona Public Service Co., El Paso Electric Co., Public Service Co. of New Mexico and Tucson Electric Power Co.

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