Six electric utilities want to merge high-voltage transmission

Tuesday, Oct. 17, 2000 | 11:23 a.m.

Under the proposal, Portland General Electric, Avista Corp., Montana Power Co., Puget Sound Energy, Nevada Power Co. and Sierra Pacific Power Co. would create a new transmission entity, TransConnect.

The companies submitted their plan to the Federal Energy Regulatory Commission on Monday.

In other respects, the utilities would remain independent.

TransConnect would be a for-profit company that would own or lease the utilities' transmission facilities, a network that spreads through Oregon, Washington, Nevada, Montana, along with parts of Idaho and California, and carries a book value of about $1 billion.

"Individually, we're all very small," said Jim Piro, vice president of business development for Portland General Electric. "But together, we become a very large transmission system."

The energy commission ordered in December 1999 that electricity-transmitting companies form regional, nonprofit entities called regional transmission organizations, or RTOs.

That would make power grids more efficient and lower consumers' electricity rates.

TransConnect would be a member of the Western regional transmission organization, RTO West. Other members would include the Bonneville Power Administration and PacifiCorp.

The BPA, a federal agency and wholesale power marketer, controls about 80 percent of the Northwest's high-voltage infrastructure, or about 15,000 miles of lines. PacifiCorp claims ownership of about 15,000 miles of transmission and pegs the system's value at about $1.5 billion.

It was not clear Monday how many miles TransConnect's lines would cover.

PacifiCorp and other entities involved in the formation of RTO West on Monday submitted papers to the federal commission explaining the steps they have taken to meet the federal order. Details about RTO West's structure and operations will be turned in Oct. 23, Furman said.