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From:christi.nicolay@enron.com
To:jeff.brown@enron.com, ron.mcnamara@enron.com, james.steffes@enron.com,sarah.novosel@enron.com, aleck.dadson@enron.com, daniel.allegretti@enron.com, howard.fromer@enron.com, joe.hartsoe@enron.com, donna.fulton@enron.com, tom.hoatson@enron.com, steve.
Subject:FERC order denying SPP/Entergy RTO -Summary
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Date:Thu, 29 Mar 2001 11:20:00 -0800 (PST)

FERC Order Issued 3/28/01 Rejecting SPP/Entergy=01,s RTO=20

The Commissioners were generally displeased by SPP and Entergy=01,s lack o=
f=20
substantive work toward complying with the Commission=01,s previous orders =
and=20
failure to sufficiently discuss the feasibility of a broader RTO. As Chair=
=20
Herbert said: SPP should have read the Commission=01,s order in May and ta=
ken=20
it more seriously. (Issues for possible rehearing are ****).

? The Commission declined to approve SPP=01,s scope and configuration becau=
se=20
the SPP members remain uncommitted to the RTO and have not made a decision =
to=20
transfer operational control and the SPP/Entergy relationship remains=20
somewhat undefined. The Commission wants to see evidence of serious effort=
s=20
to form RTOs that combine current RTO proposals and Entergy and SPP must fi=
le=20
a report by May 25 addressing this scope issue.

o Bulk power sales and purchase figures indicate that natural markets exte=
nd=20
beyond the SPP RTO borders. There are significant sales and purchases=20
between SPP and SERC (and Midwest companies to a lesser extent.)
o Expect the existing TOs to file Section 203 applications to transfer=20
control of transmission to SPP.
o MOU must be clarified to demonstrate that the minimum requirements of an=
=20
RTO, such as operational authority, ATC calculation and planning/expansion,=
=20
will be met.

? Approves Entergy=01,s proposal for a Managing Member that controls all vo=
ting=20
rights to the Transco and approves Entergy=01,s Board approval process (sta=
tes=20
that Entergy would control no more than two of the selection committee=01,s=
=20
seven members).=20

? Allows Southwestern Public Service Company to satisfy its merger obligati=
on=20
by joining SPP instead of MISO.

? The Commission did not address EPMI=01,s motion to condition market based=
rate=20
authority on RTO participation.******