Transcript Petroleum Supply and Distribution in New England

New England States
Committee on Electricity
(NESCOE)
David L. O’Connor, Commissioner
Massachusetts Division of Energy Resources
Electric Restructuring Roundtable
June 18, 2004
T://tm-pubinfo/presnt-tm-dt/reliability/NESCOE 06-18-04 doc
1
Origins of NESCOE
• FERC White Paper on SMD invites formation of
Regional State Committees.
• Designed to enable States to participate in development
of regional electricity policies.
• The New England Governors directed energy and
environmental regulators to file plan with FERC.
2
FERC’s Guidance
- “…primary responsibility for determining regional
proposals and the transition process” in
funding for transmission enhancements
the structure of regional access charges, and
allocation of Financial Transmission Rights (“FTR”)
- “…the RSC should also determine the approach for
resource adequacy across the region.”
Source: FERC’s Order approving the Southwest Power Pool RTO (Docket Nos.
RTO4-1-1000 and ER04-48-000).
3
NESCOE’s Policy Concerns
• Transmission system planning and expansion
• Resource adequacy
• Should the Committee play a role in the siting
of inter-state transmission lines?
• The RSC’s scope can be expanded or contracted but
only by unanimous agreement of the states
4
Governance
• Governors appoint one or more members to represent their
state but each state has a single vote
• The goal is to achieve consensus of all states on any
Committee determination
• If no consensus, “Majority Determinations” must succeed on
each of two votes:
- a “one state, one vote” basis, and
- a weighted vote for each state based on electricity consumption
• Changes in voting structure allowed only with unanimous
consent of the states
5
Procedural Rights
• Committee receives notice from RTO-NE or TO’s of any
proposed additions or changes to market rules or tariffs.
• Committee is given reasonable opportunity to recommend its
own additions or changes.
• A Committee determination is to be filed with FERC by RTONE or TOs, with explanation of why it was or was not followed.
• Committee determinations are to be filed with FERC by RTONE or TOs pursuant to their rights in Section 205 of the FPA.
• FERC asked to give “deference” to Committee determinations.
6
Organization and Funding
• A non-profit corporation with full-time staff
• Governors’ appointees serve as Board of Directors
• Funded by a regional tariff collected by RTO-NE from
transmission providers
• Transmission providers recover costs from all New
England retail electricity customers
7