Enron Mail

From:janet.butler@enron.com
To:daniel.allegretti@enron.com, nancy.bagot@enron.com, martha.benner@enron.com,donna.bily@enron.com, lynn.blair@enron.com, jack.boatman@enron.com, rob.bradley@enron.com, theresa.branney@enron.com, lorna.brennan@enron.com, tom.briggs@enron.com, janet.bu
Subject:Commission Meeting
Cc:
Bcc:
Date:Wed, 14 Mar 2001 05:55:00 -0800 (PST)

In the public meeting today, the Commissioners approved RTO status for Grid=
=20
South, RT01-74 with certain conditions imposed. The conditions are that Gri=
d=20
South continue to expand with additional members; Santee Cooper must be=20
included in the Grid South RTO and denies Grid South=01,s proposed veto rig=
hts=20
(must modify to ensure selection of board members represents more=20
participation by stakeholders) =01) must maintain its independence; and ord=
ers=20
Grid South to resurrect original list of board candidates for another revie=
w.

FERC rejected Southern Company=01,s application, RT01-77, for RTO status fi=
nding=20
that the conditions of Order No. 2000 have not been met. The application is=
=20
rejected as being too inclusive. Chair Hebert stated that single company RT=
O=20
will not be accepted and are not the future. FERC wants to see good regiona=
l=20
member participation.

Commissioner Massey concurs on Grid South order; dissents in part in Southe=
rn=20
Company order, (expressed dismay over pricing issues finding that since the=
=20
application has been rejected, there is no reason to address pricing issues=
=20
in rejection).

The Commission discussed the order, EL 01-47, for relief to the California=
=20
and western state markets. The order announces certain action to be taken t=
o=20
increase supply and reduce demand. As stated, the actions are: 1) require=
=20
California ISO and transmission owners to file grid enhancements that can b=
e=20
achieved in short-term; 2) extends and broadens temporary waivers of=20
operating and efficiency standards and fuel use requirements for QFs; 3)=20
waives prior notice requirements and grants market-based rate authority for=
=20
wholesale power sales; 4) authorizes retail/wholesale customers to reduce=
=20
consumption to resell their load reduction at wholesale at market-based=20
rates; 5) announces staff conference this Spring to discuss hydro-licensees=
,=20
resource agencies the possibility of increased generation consistent with=
=20
environmental protection. Addtionally, the order seeks comments by March 30=
,=20
1) rate incentives for electric transmission and gas facilities that provid=
e=20
additional capacity in the short term; 2) use of interconnect authority=20
(Section 210.d of FPA) to help alleviate impediments to additional supply; =
3)=20
waiving natural gas blanket certificate regulations to increase the dollar=
=20
limits for facilities under automatic authorization and prior notice=20
authorization; 4) offering blanket certificates for construction for=20
acquisition of portable compressor stations to enhance pipeline capacity to=
=20
California; 5) allowing for greater flexibility that license hydroelectric=
=20
projects to increase generation while protecting environmental resources.=
=20

FERC Commissioners intend to meet with Western state commissioners and othe=
r=20
regulators to discuss price volatility and other FERC related issues that=
=20
have recently been identified by the western governors. This will be a=20
one-day conference.=20