LANSING, October 19.   Michigan Public Service Commissioners David Svanda 
and Robert Nelson addressed Federal Energy Regulatory Commissioners, colleagues 
from state public utility commissions and industry officials at Regional 
Transmission Organization workshops in Washington, D.C. this week, advocating 
a strong federal/state partnership to nurture a highly reliable and vibrantly 
competitive regional electric market. The Federal Energy Regulatory Commission 
(FERC) held a series of workshops to hear comments on a number of issues related 
to regional transmission organizations, including market monitoring, design and 
structure, transmission planning and expansion, siting, cost recovery, and 
congestion management.  Regional transmission organizations (RTOs) are independent 
organizations that operate regional transmission grids.

	"Midwest regulators have been working with transmission owning utilities, 
merchant plant developers, marketers, and other stakeholders as they grapple with 
the myriad issues surrounding the formation of regional transmission organizations," 
noted Mr. Svanda.  "We want to help the FERC prove that a regional/FERC partnership 
can have a very beneficial impact on the economic, reliability, and security 
considerations of the region and will prove invaluable in creating and monitoring 
the development of truly competitive wholesale electricity markets."

	"The state commissions in the Midwest believe that the FERC can take an 
important step to foster competitive electric markets through RTOs by enacting rules 
that codify those principles fundamental to an effective market monitoring program," 
stated Mr. Nelson.  "We are committed and prepared to work cooperatively with the 
FERC to ensure that the Midwest regional plan grants the market monitor the necessary 
independence to investigate and report issues and problems, provides the FERC and all 
state regulatory agencies with full access to relevant information, and empowers the 
market monitor with appropriate enforcement authority to address issues requiring 
immediate mitigation action."	

	"The Michigan Public Service Commission has long been a national leader in the
movement to create competitive electric markets," said MPSC Chairman Laura Chappelle.  
"Our participation in this proceeding is designed to promote Michigan's interests in a 
manner that is consistent with national objectives."


The MPSC is an agency within the Department of Consumer and Industry Services.


October 19, 2001
(Commissioners Svanda and Nelson address FERC on Regional Transmission Organizations)