By Tom Kleckner

FERC Commissioner Cheryl LaFleur took time from a whirlwind listening tour of the Rocky Mountain region last week to visit the Colorado Public Utilities Commission and discuss the Mountain West Transmission Group’s desire to join SPP.

Appearing Jan. 25 before the PUC’s fourth information session devoted to Mountain West’s pursuit of RTO membership, LaFleur recalled sitting in on what she said felt like the “100th meeting” of Mountain West stakeholders as they discussed the subject. SPP’s and Mountain West’s utilities are now deep into negotiations over membership, accelerating a process that began last January when the group announced its intention to join the RTO. (See SPP, Mountain West Resolving ‘Contentious’ Issues.)

“You don’t go out on 200 dates if you’re going to break up,” LaFleur said. “There’ve been 100 since then, so it’s starting to seem pretty real.”

FERC’s most senior commissioner addressed questions from Colorado regulators, industry representatives and consumer advocates about jurisdictional issues, consumer representation in SPP and the new opportunities presented to Mountain West by recent structural developments in the Western Interconnection.

“These are exactly the kind of questions you should be asking,” she said. “There’s no time like now to ask questions of SPP, [of] the utilities that are coming to you for the authority to do this — of whomever is involved in this, because you have a critical role to play in making sure that what happens is right for the people in Colorado.”

The PUC has jurisdictional authority over Xcel Energy’s Public Service Company of Colorado and Black Hills Energy, both Mountain West members.

No Rubber Stamp

Colorado Commissioner Frances Koncilja, who has been organizing the information sessions, said she will invite CAISO, Peak Reliability and PJM to a fifth forum, in either February or March, to explain “what they think they can do for Colorado citizens.”

“This is not a decision this commissioner is going to rubber stamp,” Koncilja said. “I want to know what all the alternatives are.”

While SPP is intent on becoming Mountain West’s reliability coordinator (RC), Peak Reliability, the group’s current RC, has recently proposed to offer market services in the Western Interconnection through a joint effort with PJM. Further complicating matters, CAISO has also given 18-months’ notice that it intends to leave Peak and offer its own reliability services for half the RC’s price. (See Peak, PJM Detail Western Market Proposal and CAISO to Depart Peak Reliability, Become RC.)

LaFleur said the prospect of multiple RCs in the West will require a concerted effort by regulators and others involved to maintain the “situational awareness” developed by years of having only one.

“It will take work with multiple RCs, but I suspect if we do the work right, it can be done in the same way as we have multiple RCs in the East,” she said. “It will take some careful work to make sure the situational awareness between RCs is sustained and that everyone’s treated fairly.”

Consumer advocate Larry Miloshevich, with Energy Freedom Colorado, asked LaFleur how nonutility stakeholders could make their interests heard in the face of decisions that he said were being made behind closed doors “for reasons that are not all that clear.” Come to FERC, she replied.

“I hate to sound like a civics book, but the citizens are not unprotected. [FERC’s commissioners] are sworn to protect them. That’s our whole job. We’re not here for the utilities,” LaFleur said.

“There are probably political reasons why [Mountain West] kind of sought to be its own thing rather than being with other parts of the West, but that’s not for me to judge,” she said. “Yes, file those arguments. We’ll listen to them.”

LaFleur referred to FERC doctrine, saying the move to join an RTO “is a voluntary decision by the members who go in.” She said the commission learned this the hard way after considering a nationwide standard market design in the early 2000s.

“There was a revolution, almost coast to coast, with people saying, ‘We’ll decide who we want to sign up with, not FERC,’” LaFleur said. “FERC said, ‘If this market thing is going to take off, we’re going to let people come together and make their own decisions.’”

The commissioner extolled the benefits of RTO membership, pointing out that organized markets now cover two-thirds of the country and include regions with and without electric competition.

“It’s worked across all different models. Why? Because you’re deploying resources over a bigger footprint, so you can run your systems more efficiently with less reserves to bring your energy to customers and hopefully keep your lights on at lower costs,” LaFleur said. “All this change, all this wind, all this solar … it’s made people stand up and say, ‘Wow, there might be something in this for our customers too.’”

It just had to grow organically in the West.

“If this came from Washington, it would be DOA. We’ve seen that through multiple attempts,” LaFleur said. “The best thing FERC could do is say nice things when invited to go somewhere but not do anything. It appears the time is approaching when we might have to do something.”