Statement: January 20, 2011 Docket No. AD02-1-000

Statement of Chairman Jon Wellinghoff on RTO ISO performance metrics

"I thank each of you for being here this morning to discuss your 2010 ISO/RTO Metrics report. Your cooperation with FERC staff in development of the performance metrics that form the basis for this report and your work in developing the data for the metrics is very much appreciated. In my time here at the Commission, I have seen that operation of transmission systems and markets by ISOs and RTOs provide positive benefits to consumers. You keep the lights on for about 75 percent of the electricity customers in the country, but you also ensure that these lights are illuminated by competitively-priced power. This report is an opportunity to provide information to the public in a comprehensive way on the array of values that RTOs provide. These values include a reliable transmission grid; transparent, competitive and efficient wholesale electric market performance; and effectiveness in controlling costs and meeting the needs of consumers. The report also documents the role of the ISOs/RTOs in meeting customers' public policy energy objectives. These objectives include facilitating development of renewable energy resources, demand resources and energy efficiency.

These reports will be a valuable addition to the information that is already available to the public. Other pertinent material regarding ISO/RTO performance includes:

• The comprehensive financial and operating report submitted to us for electric rate regulation and financial audits in the FERC Form 1which must be filed by all jurisdictional public utilities;
• FERC's triennial analysis of entities with market-based rate authorization for any ability to exercise market power;
• The State of the Market reports of each ISO/RTO;
• FERC's State of the Market report; and
• The various regional initiatives and performance measures used by the individual ISOs and RTOs.

The total body of this information validates not only the transparency and efficiency of these organized wholesale electric markets, but also their continuing value to consumers. I look forward to your presentations. I believe Mr. Whitley will introduce the report."