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Cinergy CEO says US FERC has 'complicated' Midwest common market

31 March 204 - The US Federal Energy Regulatory Commission has "complicated" efforts to develop a regional wholesale market in the Midwest by allowing commonwealth Edison and American Electric Power to join the PJM Interconnection, James Rogers, chairman and CEO of Cincinnati-based Cinergy Corp, said.

In remarks to the Electric Power 2004 meeting in Baltimore, Maryland, Rogers said "no good engineer" would have allowed the two Midwest utilities to join what is primarily a Mid-Atlantic regional transmission organization.

Rogers suggested that the decision has left the Midwest Independent Transmission System Operator with a less than ideal configuration and blamed FERC for failing to act aggressively to establish regional grid operators 12 years after Congress approved legislation, the Energy Policy Act of 1992, that effectively established competitive wholesale power markets.

Rogers said the current uncertainty over RTOs is unlikely to be resolved in the next five to seven years because "everyone will be litigating everything."




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