In a filing Monday, December 16, 2002 before the Federal Energy Regulatory Commission (FERC) to approve the purchase of the transmission system of Illinois Power, Trans-Elect, Inc. informed the Commission that its new affiliate, the Illinois Electric Transmission Company (IETC), will become a member of the FERC-approved Midwest Regional Transmission Organization (RTO) known as the Midwest ISO (MISO).
"This is an important step in satisfying Illinois customers' concerns regarding RTO 'seams' issues that would arise in joining any other RTO besides the MISO," said Paul D. McCoy, Senior Vice President, Transmission Systems Operations of Trans-Elect. "In following the model we used in the purchase of the Michigan Electric Transmission Company (METC), we provide consistency, efficiency and clarity to our operations in the Midwest."
In mid-October, Trans-Elect announced the purchase of the transmission assets of Illinois Power for $239 million. Under the original agreement, the IETC was obligated to be in the PJM ISO until the end of 2004. "We successfully negotiated with the interested parties to join the Midwest ISO. It makes sense for our business model, it makes sense for customers and, we believe, it will make sense to FERC," said Bernie Schroeder, President and Chief Operating Officer of Trans-Elect.
In addition to requesting approval of the transfer of the transmission assets from Illinois Power to Trans-Elect, Trans-Elect is requesting that rates be made effective at the close of the transaction. Trans-Elect has asked the FERC to approve that transaction expeditiously.