Edison Calls For

WASHINGTON, DC -- - The Federal Energy Regulatory Commission (FERC) should call a "time out" to rethink the schedule for giant utility Commonwealth Edison to join the PJM Interconnection LLC grid, a unit of Edison International ((EIX.N)) said in a letter released on Thursday.

FERC wants U.S. utilities to turn over control of their transmission lines to super-regional grids, with the aim of boosting supplies and lowering costs.

FERC in April gave American Electric Power Co. Inc. ((AEP.N)) and Exelon Corp. ((EXC.N)) utility Commonwealth Edison Co. permission to transfer control of their power lines to the PJM grid, a 13,000-mile network spanning seven Northeast states and the District of Columbia.

ComEd has set a Nov. 1 deadline to integrate its 3,100 miles of transmission lines with the PJM grid.

But Edison Mission Energy has asked FERC to delay the timeframe, pointing to looming state regulatory delays blocking progress on AEP's plans to join the PJM grid.

Chicago-based ComEd's plans to join PJM without AEP "pose threats to the stability and viability of competitive wholesale electricity markets in the Midwest," Edison Mission said.

Virginia's legislature has passed a law barring AEP and Dominion Resources Inc. ((D.N)) from joining a regional transmission group until 2004 -- and then only with express permission from the state.

Similarly, Kentucky's public service commission has denied an application by AEP's state affiliate to join PJM on the basis that it is contrary to state law.

"AEP will not be in a position to integrate its system with PJM for a long time, if ever," Edison Mission said.

AEP's absence "will leave a chasm two states wide" and create an undesirable configuration for the Midwest grid, the company said.

FERC should call a meeting of grid participants to reassess the timetable, it said.

State challenges are among several threats to FERC's grid-building initiative.

Some Southern and Northwestern states have vigorously opposed FERC's attempt to require utilities to join regional grids, and lawmakers in Congress are pursuing legislation to block or severely delay the agency plan.

The case is pending before case in docket ER03-262.