| Statement: May 15, 2008 |
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| Docket Nos: OA08-32-000, OA08-53-000, OA08-42-000, OA0841-000, OA08-58-000 and OA08-21-000 |
Commissioner Spitzer's statement on OATT planning compliance filings
“One of the core components of Order No. 890 is “Attachment K” of the pro forma tariff – the
establishment of a coordinated, open and transparent planning process. Transmission congestion imposes
reliability and economic burdens upon consumers and requires enhanced transmission investment.
This
Commission therefore mandates that transmission providers establish a planning process through which
they coordinate with customers, neighboring transmission providers, state authorities and other
stakeholders. The Commission believes this process will promote coordination, minimize opportunities for
undue discrimination through open participation and ensure comparable transmission service.
As I stated in support of Order No. 890, regional planning provisions will promote a public dialogue that I
believe will result in new transmission investment where it is most needed. The open process envisioned
in Order No. 890 will ultimately produce this needed transmission through discussions of the economic and
environmental aspects of demand response, new generation and other resources.
Today we vote on several of these “Attachment K” compliance filings. In Order No. 890, the Commission
allowed transmission providers flexibility to develop planning processes that work best for their systems,
with the proviso that tariff rules must be specific and clear to ensure compliance by transmission providers
and put customers on notice of their rights and obligations. Consistent with this flexibility, the Attachment
K proposals demonstrate that there is great variety in how transmission providers and interested
stakeholders conduct the planning process. While each of the proposals herein is subject to further
compliance, the proposals demonstrate the efforts of transmission providers towards an open and
inclusive planning process. Accordingly, I support these Orders.
I believe the transmission planning process should not discriminate against alternative forms of ownership
structure of a proposed transmission upgrade or project. We should do all we can to eliminate barriers to
innovative methods to finance transmission. Further, I continue to believe that joint ownership between
public and private entities, independent transmission, and merchant transmission, should be considered as
effective tools to facilitate necessary transmission investment, particularly in the case of large backbone
upgrades or additions.
In summary, the planning processes described in the Orders before us, as modified, provide an important
method for this Commission to foster competitive wholesale markets and encourage the development of
needed energy infrastructure.
Finally, I would like to thank staff for their on-going efforts to ensure thorough and consistent compliance
with Order No. 890.”
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