Enron Mail

From:steve.walton@enron.com
To:charles.yeung@enron.com, john.shelk@enron.com, sarah.novosel@enron.com
Subject:RE: WECC
Cc:linda.robertson@enron.com, carin.nersesian@enron.com, dave.perrino@enron.com,andy.rodriquez@enron.com, richard.shapiro@enron.com, paul.kaufman@enron.com, m..landwehr@enron.com, alan.comnes@enron.com
Bcc:linda.robertson@enron.com, carin.nersesian@enron.com, dave.perrino@enron.com,andy.rodriquez@enron.com, richard.shapiro@enron.com, paul.kaufman@enron.com, m..landwehr@enron.com, alan.comnes@enron.com
Date:Fri, 28 Sep 2001 07:24:16 -0700 (PDT)

In order to explain who WECC is, I must lay a little historical background.=
If you will recall, when EPAct'92 was passed, the usual view was that FER=
C could order wheeling, but only on a case by case basis. There had been a=
n effort to include an RTG provision in the bill, but it died when the conf=
erence committee was finalizing the bill. There was a view by many in the =
West at the time, that it would still be better to move ahead with self-imp=
lementation of open access rather than waiting for litigation. In the summ=
er of 1994, first WRTA (Western Regional Transmission Assocation) then SWRT=
A (Southwestern Regional Transmission Association) and NRTA (Northwest Regi=
onal Transmission Association) were filed. They were developed in an open =
process that included, perhaps for the first time, the transmission owners,=
the transmission dependent utilities, new market entrants and state regula=
tors. The IPPs and Marketers were participants, including Enron, Electric =
Clearing House (now Dynegy), DesTec, CalPine, Tenaska, etc. FERC responded=
in November telling WRTA that it would have to accept comparable transmiss=
ion access. Instead of collapsing as predicted by the "just say no" crowd,=
the members accepted the conditions and accepted those conditions. WRTA f=
ormed in June of 1995. =20
=20
While the RTGs appear rather tame today, at the time they challenged the tr=
aditional view, offering to provide open access tariffs. When the FERC iss=
ued the NOPR that gave us Orders 888/889 just prior to WRTAs formation, the=
participants in the three Western RTGs members responded during the summer=
of 1995 by working together to develop the key concepts of what became OAS=
IS. With the filing of the current OATTs, much of the ground breaking work=
of the RTGs was done, but they remained a forum for discussion of the inte=
rface between commercial and reliablity. A common planning data base was d=
eveloped in which included non-traditional participants and their ideas to =
be included. The Western Market Interface Committee (WMIC) was organized b=
y the RTGs and has had a continuing role in bringing the the three (soon to=
be two?) RTOs proposals together.
=20
When the Western RTGs were organized in 1995 they were formed outside of WS=
CC. WSCC had a very restrictive policy, allowing only utilities to be memb=
ers. When they grudgingly allowed IPPs to join, it was still by half-measu=
res. For instance, WSCC would allow only employees of the member to attend=
, so new, small members could not employ a consultant for joint representat=
ion. When the RTG discussions were underway, the good old boys wanted it i=
nside WSCC with the same kinds of restrictions. We broke that mold, formed=
separately and then through the FERC order approving WRTA force WSCC to op=
en its membership fully or to face the creating of a separate planning orga=
nization. The change passed by one vote, but the change occured.
=20
Once all the organizations were up and running (WSCC, WRTA, NRTA, SWRTA) it=
was obvious that there was substantial duplication of meetings and functio=
ns. Serions talks of a merger began in about 1998. They went very slowly=
, but finally produced a common organization to be called the Western Elect=
ric Coordinating Council (WECC), which would merge WSCC, WRTA and SWRTA tog=
ether initially. NRTA will likely vote to merge as well. WECC is a RRG as=
far as NERC is concerned. =20
=20
While the new bylaws do not go as far as I would have liked, they do furthe=
r open up the WSCC process and provide for some consideration of the commer=
cial impact of reliablity rules. Is this a transitional phase? Perhaps. D=
oes it go as far as the EISB proposal? No, but I see no reason to play "sm=
ash-em, bash-em" will every effort that hasn't followed the latest turn in =
our thinking. As I hope this memo shows, we have been evolving the industr=
y, never as fast as Enron or others (myself included) have wanted it to cha=
nge. The WECC will reconsititue the WSCC board under new membership rules =
and opens the possiblity of changing the entrenched senior staff as WSCC to=
breath some life into the organization. At a minimum, the change from WSC=
C/WRTA/SWRTA/NRTA to WECC will provide interim improvement while the debate=
over EISB works its way to a conclusion and further change takes place.
=20
Steve
=20
-----Original Message-----=20
From: Yeung, Charles=20
Sent: Fri 9/28/2001 8:26 AM=20
To: Shelk, John; Novosel, Sarah=20
Cc: Robertson, Linda; Nersesian, Carin; Walton, Steve; Perrino, Dave; Rodri=
quez, Andy=20
Subject: RE: WECC



This is the first I have heard of WECC. I assume it is a "Western" NERC -t=
ype organization?=20

I understand that the traders in the West are not too concerned about form=
ing single standards applicable to both the East and West. They would howe=
ver, like to see more consistency in practices between TPs within the West =
itself. Sounds like WECC may be able to do this. One of the big problems w=
ith the WSCC has been that it was not as stringent in dictating operating r=
equirements on its members as the East has tried to be. At NERC, WSCC mem=
bers have always argued deference to the West due to system differences. U=
nfortunately deference to the West has meant little to no standardization i=
n the West over many transmission access practices, leaving it up to the su=
b-regions or individual TPs to decide. I am not saying they are not techni=
cally justified, but there has been no incentive to bring about more consis=
tent practices.

Is WECC consistent with EISB? It depends, if WECC is sovereign over any ot=
her organization for standards approval, then I would say no. I think WECC=
should be subject to the EISB process and have to get standards approved t=
hrough EISB as well. The problem is that EISB is voluntary and if WECC can=
go directly to FERC, then it becomes effectively the same as "deference to=
the West" -type language we have been fighting against. =20

So my verdict on WECC depends.....=20
As I noted in an earlier note, I believe there are those pushing for NERC t=
o continue doing "reliability-only" and establish a contractual relationshi=
p to coordinate with EISB. The WECC could take the same approach. If this=
scenario plays out, I believe customers will leave NERC and put their mone=
y into EISB. We must then work towards making NERC merely a transmission o=
perators' advocacy group ( i.e. EEI is transmission owners advocacy group).=
They can exist to focus on reliability - but have no direct standards set=
ting authority. They must be a member of EISB and participate as a member =
in one of the market sectors.

If anyone has any more info on WECC, please share it.=20

Charles Yeung=20
713-853-0348=20

-----Original Message-----=20
From: Shelk, John =20
Sent: Friday, September 28, 2001 7:05 AM=20
To: Novosel, Sarah; Yeung, Charles=20
Cc: Robertson, Linda; Nersesian, Carin=20
Subject: WECC=20



What do we think of FERC's approval of the new WECC this week? As I unders=
tand it from the trade press, this new group is a merger of the WSCC and tw=
o other groups. The new entity will handle reliability for RTOs, etc. and =
others in the West. Is this consistent with our views on reliablity, EISB,=
etc.?

Thanks.