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Enron Mail |
=09FYI
-----Original Message----- From: =09Butler, Janet =20 Sent:=09Thursday, September 27, 2001 9:12 AM To:=09Bagot, Nancy; Benner, Martha; Blair, Lynn; Boatman, Jack; Butler, Jan= et; Cordes, Bill; Corman, Shelley; Culwell, Christi; Daniel, Shonnie; Darve= aux, Mary; Dietz, Rick; Dornan, Dari; Dushinske, John; Farrell, Sharon; Fos= sum, Drew; Fulton, Donna; Goodpasture, John; Harris, Steven; Hartsoe, Joe; = Hass, Glen; Hayes, Robert; Hayslett, Rod; Heckerman, Bambi; Hess, Theresa; = Hill, Robert; Holmes, Bradley; Holtzman, Staci; Horton, Stanley; Janousek, = Martha; January, Steven; Kilmer III, Robert; King Jr., Frazier; Kirk, Steve= ; Kissner, Tim; Lantefield, Laura; Lichtenwalter, Blair; Loeffler, Michael;= Lowry, Phil; Mann, Ruth; Martens, Donna; McCoppin, Dorothy; McGowan, Mike = W.; Miller, Mary Kay; Nacey, Sheila; Nelson, Kimberly (ETS); Neppl, Ray; Ne= ubauer, Dave; Neufeld, Eva; Novosel, Sarah; Paladino, Ranelle; Paschal, Zel= da; Patterson, Geneva; Pavlou, Maria; Petersen, Keith; Place, Janet; Porter= , Gregory J.; Pribble, Dan; Pryor, Tony; Raker, Colleen; Rice, Randy; Ringb= lom, Kathy; Saunders, James; Sawyer, Lisa; Scott, Donna; Soldano, Louis; St= anton, Lon; Talcott, Jim; Taylor, Gina; Tu, Denis; Van Norden, Mike; Veatch= , Stephen; Vignaroli, Donald; Warner, Jody; Watson, Kimberly; Wilkie, Kim; = Wilson, Rob; Winckowski, Michele Subject:=09Summary of Commission Meeting The Commission meeting yesterday, chaired by Pat Wood, consisted of discuss= ions on FERC's: Administrative Issues ?=09Strategic and 2002 Business Plan Priorities for the strategic plan for 2001 through 2005 were outlined yeste= rday and include a) promoting secure, high-quality environmentally responsi= ble energy infrastructure with consistent policies; b) encouraging competit= ive markets in lieu of traditional regulation; c) protection of markets/cus= tomers through fair market oversight; and d) efficiently running FERC. In r= eaching these goals, FERC intends several initiatives such as removing impe= diments to market investment, encouraging use of new technology; continuing= to advance competitive markets; addressing landowner, safety and environme= ntal concerns and striving for clarity not only in specific areas such as c= ost recovery but also in communications to stakeholders. Shortly, Staff wil= l be recommending a twelve-month plan as part of the overall strategic plan= . ?=09Infrastructure Adequacy There will be a series of open commission meetings held throughout the U.S.= beginning in November in the West; in December or early spring a meeting w= ill be held in the northeast and later in 2002 for the Midwest and south. T= he intent is to reach out to the states for greater cohesion. ?=09California Infrastructure Update Staff concluded that the California natural gas market for take-away capaci= ty was insufficient to accept delivery of all interstate capacity. The Cali= fornia Energy Commission released a report on September 24 that agrees that= more expansion in California is needed.=20 Constraint Study FERC will complete a constraint study with associated costs that should be = completed by November 7, 2001. Staff cited constraints in central New York = state and California. Massey asked if the study was to provide solutions or= recommendations. It is a study to identify the constrained areas and the r= esulting costs to consumers. RTO FERC is imposing additional "incentives" to encourage the formation or join= ing in RTOs. The Midwest, Northeast and Southeast RTOs will be considered a= t a FERC meeting in October. There will be a series of meetings in "RTO wee= k" to focus on congestion management, cost recovery, marketing monitoring, = transmission planning, reliability standards and transmission rights. A NOP= R is expected to be issued on market design and structure. Marketing Affiliate NOPR, RM01-10 The Notice of Propose Rulemaking would apply one set of rules across both n= atural gas pipelines and electric utilities. Under the proposal, transmissi= on providers must operate independently and treat all customers on a nondis= criminatory basis. The rules would be codified in a new section of the reg= ulations and would broaden the definition of affiliate to include all "ener= gy affiliates." The only exception noted in the discussion was the exclusi= on of Regional Transmission Organizations (RTOs) from the definition of ene= rgy affiliates. =20 The Commission was presented two options to address the applicability of th= e rule to public utilities' native load merchant functions. =20 Option A: Status Quo - the rule would not apply to the bundled retail merc= hant function. Option B: The rule applies to the bundled retail merchant function and wou= ld prohibit merchant employees from having access to the control room of th= e utility.=20 After extensive discussion, the NOPR was approved 4-0 with additional langu= age added on behalf of Commissioner Breathitt to state that Option B may no= t be included in the final rule and encourage comments by affected parties = and the States. Massey questioned whether the NOPR is primarily focusing on broadening the = definition of "energy" affiliate and whether there are any energy-type affi= liates that would be exempt. Staff responded that the emphasis is on broade= ning the definition to include all "energy affiliates" and no energy-type m= arketing affiliates would be exempt, except RTO's. The proposed rule extents the current prohibition against disclosing certai= n information to all "energy affiliates". The rules do not directly govern= energy affiliates, but they govern the disclosure of information and the s= eparation of transmission employees, officers and directors from other busi= nesses.=20 Under the proposal, waivers may be requested, if operationally required or = under emergency protocols particularly for small systems. Gas Pipeline Operational Flow FERC has tabled this item for the next public meeting on October 11.=20
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