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Illinois Power Defends Move to Alliance RTO

11/21/2000

LCG, Nov. 21, 2000--Illinois Power Co. said yesterday that it and Dynegy Inc. had in a filing with the Federal Energy Regulatory Commission responded to objections raised before FERC of the utility's plans to withdraw from the Midwest Independent Transmission Organization and join the Alliance Regional Transmission Organization.

Illinois Power and Dynegy said in their filing that the decision to withdraw its transmission assets from the Midwest ISO and go with Alliance "conforms to the FERC's prior rulings and is consistent with the FERC's policy of encouraging the formation of regional transmission organizations."

"We continue to believe this is the best option for (Illinois Power) and its customers, both those who continue to take bundled service and those who elect to choose their power supplier," said Kathy Patton, the utility's vice president and general counsel.

Patton pointed out that many Alliance members operate in states that have electric choice, while most Midwest ISO members do not. "This fact alone makes the Alliance RTO a better tool to help promote competition in Illinois," she said.

"An independent, well-run transmission sector is essential to the health of the electric industry,"Patton said. "A business-oriented system, with incentive to move power economically, efficientlyand effectively, is the best way to achieve the objectives of competitive electric industry, both at thewholesale and retail level."