Southeast Region RTOs

The Commission at today's FERC meeting voted out orders in the three
Southeast region RTOs - Grid South, SETrans and SPP. It was reported at the
meeting that the orders will find that it is necessary for a single Southeast
region RTO. A separate order will be issued in a new docket RT01-100
initiating mediation before an ALJ (Judge Bobbie McCartney) to facilitate the
formation of the single Southeast RTO. Within one week, the settlement
proceeding will begin and will continue for 45 days. The judge thereafter
must report to the Commission within 10 days including an outlline of a
Southeastern RTO, milestones for completion of intermediate steps and a
deadline for submitting a joint proposal. The Commission will review the
report and may issue further orders as needed.

Grid South, SE Trans and SPP are required to participate and Grid Florida is
encouraged to participate in the mediation. All parties to any of these RTOs
should also participate.

The Grid South order will also include language requiring an independent
board. After the independent board is established, it should choose an
operator of the RTO. This language should further support the idea set out
in a prior SPP order granting Enron's clarification that the RTO should not
make major capital expenditures for software or operating systems prior to
the establishment of an independent board.

The Grid South order should also include language supporting the
establishment of interconnection standards.