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Study Shows RTOs Are Not Promoting Renewable Development

In a January 4 press release, the American Public Power Association (APPA) cited a study by the Carnegie Mellon Electricity Industry that found that there is "no evidence that membership in an RTO [Regional Transmission Organization] promoted the development of renewables." 

The conclusions of the study contradict an "open letter" which was sent in February 2007 to the Federal Energy Regulatory Commission (FERC) from the American Wind Energy Association (AWEA) on behalf of 21 other organizations.  AWEA and the other signers asserted that RTOs and Independent System Operators (ISOs) assist renewable energy development and also support electric system reliability.  The letter cited some statistics supporting this claim, but did not provide hard data or analysis.  Key organizations that signed the letter along with AWEA include the Natural Resources Defense Council (NRDC), the California Wind Energy Association, PPM Energy, Environment Northeast and the Conservation Law Foundation. 

The APPA study said when RTO participation was isolated from other factors that could affect renewable development, such as state requirements for renewable production, there was "no relationship between RTOs and renewable energy development and a ‘negative correlation' between RTOs and wind energy."  The study was funded in part by APPA as part of its Electric Market Reform Initiative (EMRI). 

Published Tuesday, January 15, 2008 5:14 PM by Staff

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