The Midwest ISO, now consisting of nine companies covering eight states, 32,000 miles of transmission and 63,000 MW of electric power, has made its initial filing at the Federal Energy Regulatory Commission, just a month after some onlookers thought the plan was dead. In December major participants backed away from a five-year commitment to consider joining an alternative plan (see NGI, 12-15).

The pre-season debacle left the Midwest ISO with four participants whose operations were not contiguous. Most troubling was the fact that Commonwealth Edison of Chicago, a major supporter, did not have direct connections to Cinergy of Cincinnati. Now that has been solved with the addition of Ameren in St. Louis (formed from the merger of Union Electric and Central Illinois Public Service) and Illinois Power of Decatur. Other members include Wisconsin Electric in Milwaukee, Hoosier Energy in southern Indiana, Kentucky Utilities of Lexington, Louisville Gas & Electric and Wabash Valley Power Authority of Indianapolis. The eight states include Ameren’s service territory in southeast Iowa and a section of Michigan’s upper peninsula served by Wisconsin Electric.

“This is the largest ISO to be filed yet,” according to Paul McCoy of Commonwealth Edison. He points out that the Midwest ISO now has slightly more generation than PJM and considerably more than California. “This filing is also a test case for national policy,” he added, with Feb. 20 as the date for FERC’s roundtable discussion on federal authority over the reliability of transmission systems.

“I have first-hand knowledge of at least one company that is seriously considering joining,” McCoy told NGI. He predicts that several other companies may join up when FERC makes a pronouncement on the filing. Although not allowed to participate in official meetings, shuttle diplomacy is occurring between executives in interested companies and individuals who are with companies already on-board.

Conspicuously absent from this filing were the Michigan utilities-Consumers Energy and Detroit Edison-and two important utilities in Ohio-AEP and FirstEnergy. Michigan utilities have begun meetings to discuss a state-wide ISO, while AEP and FirstEnergy are considering an alliance with the alternative group, consisting of 11 utilities that also have about 32,000 miles of transmission.

AEP, with 22,000 miles of transmission of its own, is caught in the middle. It will be bordered by the Midwest ISO on the west, but the alternative group on the north and east. So what is the appeal of the Midwest ISO?

“We have a completed framework for an ISO that is now in front of FERC for approval,” said Steve Brash of Cinergy.

Sarah McKinley

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