Connecticut Senators Lieberman and Blumenthal sent a letter to FERC Chairman Jon Wellinghoff the other day complaining about ISO-NE's out-of-control budget. The senators say ISO-NE's budget "has increased by 34 percent from 2009 to 2013, including a 14.8 percent increase projected for 2013 alone. In the past five years, ISO-NE has increased its employment by 100 positions, at the same time other public entities are reducing staff and cutting expenses."
The senators want FERC to exercise some oversight and control over the little monsters it has created. According to a press release from Senator Blumenthal:
"The creation of regional transmission operators offered the opportunity for transmission line operators, generators, utilities and others to work cooperatively to develop highly efficient, reliable and cost-effective electricity. Under federal electricity restructuring legislation, RTOs were provided with the authority to develop their budgets and implement electricity distribution and generation policies subject to FERC’s oversight. Because RTOs are predominantly operated by transmission line operators and electricity generators, the consumer must rely on effective intervention by state public agencies charged with representing the consumer’s interests and FERC’s careful scrutiny of RTOs. Unfortunately, the experience since establishment of the seven RTOs in the United States has been one of relatively lax oversight, budgets that have grown out of proportion to the economy and policies that have been subject to intense consumer criticism."
Problem? The regional transmission operators have morphed into industry-controlled cartels who feel they "answer to no one" and cost consumers billions.
It was a nice idea, but it doesn't work. For-profit entities simply cannot regulate themselves under the guise of a not-for-profit organization. Change is needed. Consumers simply cannot afford RTOs any longer.
The senators want FERC to exercise some oversight and control over the little monsters it has created. According to a press release from Senator Blumenthal:
"The creation of regional transmission operators offered the opportunity for transmission line operators, generators, utilities and others to work cooperatively to develop highly efficient, reliable and cost-effective electricity. Under federal electricity restructuring legislation, RTOs were provided with the authority to develop their budgets and implement electricity distribution and generation policies subject to FERC’s oversight. Because RTOs are predominantly operated by transmission line operators and electricity generators, the consumer must rely on effective intervention by state public agencies charged with representing the consumer’s interests and FERC’s careful scrutiny of RTOs. Unfortunately, the experience since establishment of the seven RTOs in the United States has been one of relatively lax oversight, budgets that have grown out of proportion to the economy and policies that have been subject to intense consumer criticism."
Problem? The regional transmission operators have morphed into industry-controlled cartels who feel they "answer to no one" and cost consumers billions.
It was a nice idea, but it doesn't work. For-profit entities simply cannot regulate themselves under the guise of a not-for-profit organization. Change is needed. Consumers simply cannot afford RTOs any longer.
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