News 
2007
| Statement: April 19, 2007 | 
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| Docket Number: EL07-33-000 | |
Commissioner Spitzer's statement on California Independent System Operator Corporation
"In this order we approve, in concept, a financing mechanism that should provide
consumers in California and neighboring states better access to renewable resources
at just and reasonable rates. This order is a major step forward in FERC's policy of
encouraging investment in facilities to assure the interconnection and transmission of
plentiful supplies of renewable energy, including wind, solar and geothermal
resources, for years into the future.
The FERC recognizes distinctions between renewable resources and traditional
generation resources. For example, in certain regions of the country renewable
resources are remote from demand and, as a result, sellers of renewable resources
often face interconnection and cost allocation issues that other generation sources do
not face. Traditional resources may choose where to be located and thereby
exercise some control over their interconnection and transmission costs in a fashion
that renewable resources simply cannot. These distinctions impose certain obstacles
on a renewable resource's ability to serve customers and thereby limit those
customers' options.
Today's order approves a mechanism that removes these obstacles in a fair and
balanced manner. For example, the order would initially roll-in the costs of the
interconnection facilities to the transmission revenue requirement of the transmission
owner that constructs the facility. All users of the transmission grid would pay the
costs of any unsubscribed portion of the line until the line is fully subscribed. To
ensure, however, that facilities are not unnecessarily built, the order requires the
transmission owner to demonstrate a sufficient level of interest from locationconstrained
generators in the facility's capacity before it is built and the facility must
be approved in the Cal-ISO's transmission planning process.
Finally, and very importantly, this order not only furthers the FERC's goals, but also
furthers the goals of the people of California. The people of California, through their
elected representatives and State agencies have established aggressive goals for
renewable resources. This Order appropriately considered the Federal and state
policy goals and it assures that there will be adequate infrastructure to transmit
renewable electrons to market for the ultimate benefit of ratepayers. I therefore
proudly support this Order Granting the CAISO's Petition for Declaratory Order."
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