Citing what they called “regulatory uncertainties” in the regional transmission organization (RTO) arena, Duke Energy, CP&L and South Carolina Electric & Gas last week announced that they were withdrawing their applications before state utility regulators in South Carolina and North Carolina to transfer functional control of their electric transmission assets to the GridSouth RTO. But the utilities also said that they remain committed to the GridSouth RTO and plan to file new applications before state regulators in the near future that will include a revised GridSouth structure.

Tom Williams, a spokesperson for Duke Power, noted that representatives from each company’s transmission operations have entered into talks with SeTrans RTO, a nascent effort under way to form an RTO in the Southeast part of the country. “We’re talking with them and others to see how we can help implement the vision of FERC, which is a super-regional RTO,” Williams added.

“The thought was the filing itself may have to change down the road and we want to get a better sense from FERC that we’re doing what they want us to do,” Williams told NGI.

Williams noted that ultimately GridSouth could go forward as a “relatively smaller” RTO or it could potentially be a regional office of a larger RTO. “We were headed down one path, and that path still may be correct, but there may be a better path to fulfill the wishes of the FERC for larger RTOs,” he said.

In a press release issued last Tuesday, the utilities said that they intend to file new applications before the state commissions in South Carolina and North Carolina in the near future, including a revised GridSouth structure designed to meet the needs of customers and regulators.

“Our three companies have worked diligently in recent years to fulfill the vision of an efficient regional electric transmission organization and we have made a great deal of progress,” said Jim Hicks, senior vice-president for Duke Power and a member of the GridSouth management committee, in a prepared statement.

“We have office space leased, computers installed and an employee infrastructure in place and are eager to proceed, but we need a greater degree of regulatory clarity,” Hicks said. “Once we have assessed the current regulatory landscape and obtained additional guidance, we intend to refile the necessary applications with the state commissions to move this project forward.”

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