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1 Support rational long-term resource arrangements-arrangements that <br />are in turn supported b~~ long-term transmission service obtainable ~~-ith <br />acceptable risk and at just and reasonable rates; <br />1 Foster well-Functioning wholesale: electric markets that prrn~ide load- <br />serving utilities with cost-effective supply alternatives; and <br />1 Ensure that sellers ol~ short-term and long-term power supplies charge <br />market-based rates only if the resulting prices are `just and reasonable." <br />The Public Power Perspective <br />Public power utilities were created by state or local governments tp serve <br />t}te public interest. They are not-For-profit entities controlled locally by <br />the people they serve. ~hheir purpose and obligation is to provide reliable <br />and low-cost electric power to their retail and wholesale reduirernents <br />customers, consistent ~~-ith good environmental stewardship, and to do <br />so consistently year after year. <br />Rather than focusing on <br />improving transmission <br />availability through long- <br />term planning and timely <br />investments in transmission <br />facilities, RTOs have.. <br />morphed into vehicles for <br />implementing. centralized <br />markets-for day-ahead <br />and real-time power and <br />ancillary services, and the <br />use of Locational Marginal. <br />Pricing ("LMP") to deal with <br />APYAwas an important part of the coalition that convinced <br />Congress in 1992 to start the process oC opening the transmission <br />network to promote wholesale competition. It was an early and <br />strong supporter of FERC's non-discriminator}' open access <br />transmission policies. APPA also supported the formation of <br />properly structured, cost-effective RTOs, with their promise <br />of independent and non-discriminatory transmission service <br />provided under Open Access "Transmission Tariffs ("OATTs"), <br />regional non-paruaked transmission rates, and regional <br />collaborative transmission planning and constrt.iction <br />processes. APPA did so because it thought. these RTO goals <br />woi.ild benefit consumers. <br />APPA's early optimism, however, has dirnrned, as FERC's RTO <br />policies have increasingly lost sight of these shared goals. <br />tran$missiun COngestlon: Ratlicr than focusing on improving transmission availability <br />through long-term planning and timely investments in <br />transmission facilities, RTOs have morphed into vehicles for implementing <br />centralized markets for day ahead and real-time power and ancillary <br />services, and the use of Locational Marginal Pricing ("LIV'IP") to deal <br />with transmission congestion. <br />Restructuring at the Crossroads' FERC Electric Policy Reconsidered 3 <br />