Date: June 28 – July 2, 2010
Location: Indianapolis, Indiana, and Lansing, Michigan
With support from the United States Agency for International Development (USAID), NARUC experts from the Michigan Public Service Commission (MPSC) and staff from the Midwest Independent System Operator hosted representatives from the Nigerian Electicity Regulatory Commission (NERC) for a workshop on Regional Transmission Organizations (RTOs) and why they were established in the U.S. The workshop focused on various aspects of RTO functions, such as facilitating competitive wholesale markets, allowing wholesale buyers and sellers equal access to the transmission grid, and opening transmission systems owned by vertically integrated utilities. Developing a well-functioning wholesale market for Nigeria will be vital for its future energy development, and allow utilities to begin charging cost-based rates, instead of the current regime, where there is a uniform per kWh charge across the country.
The MPSC also gave a thorough review of regulatory accounting systems and the differences between utility accounting and more traditional business bookkeeping. For example, MPSC acounting staff pointed out in a discussion of depreciation the differences between engineering, accounting and economic depreciation. Other discussions centered around the use of statistics and forecasting in regulation.
Project Dates: 2008-Present
Nigerian Electricity Regulatory Commission
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