Message-ID: <10891603.1075852429127.JavaMail.evans@thyme> Date: Fri, 13 Jul 2001 12:47:20 -0700 (PDT) From: donna.fulton@enron.com To: steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, christi.nicolay@enron.com, sarah.novosel@enron.com, ray.alvarez@enron.com, dan.staines@enron.com, steve.montovano@enron.com, m..presto@enron.com, rogers.herndon@enron.com, mike.carson@enron.com, m..forney@enron.com, laura.podurgiel@enron.com, gretchen.lotz@enron.com, juan.hernandez@enron.com, l..garcia@enron.com, rudy.acevedo@enron.com, heather.kroll@enron.com, david.fairley@enron.com, elizabeth.johnston@enron.com, bill.rust@enron.com, d..baughman@enron.com, terri.clynes@enron.com, oscar.dalton@enron.com, doug.sewell@enron.com, larry.valderrama@enron.com, nick.politis@enron.com, j..sturm@enron.com, chris.dorland@enron.com, jeff.king@enron.com, john.kinser@enron.com, matt.lorenz@enron.com, patrick.hansen@enron.com, lloyd.will@enron.com, louise.kitchen@enron.com, greg.whalley@enron.com Subject: RTO Orders - Grid South, SE Trans, SPP and Entergy Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Fulton, Donna X-To: Kean, Steven , Shapiro, Richard , Steffes, James , Nicolay, Christi , Novosel, Sarah , Alvarez, Ray , sscott3@enron.com, Connor, Joe , Staines, Dan , Montovano, Steve , Presto, Kevin M. , Herndon, Rogers , Carson, Mike , Forney, John M. , Podurgiel, Laura , Lotz, Gretchen , Hernandez, Juan , Garcia, Miguel L. , Acevedo, Rudy , Kroll, Heather , Fairley, David , Johnston, Elizabeth , Rust, Bill , Baughman, Edward D. , Clynes, Terri , Dalton III, Oscar , Sewell, Doug , Valderrama, Larry , Politis, Nick , Sturm, Fletcher J. , Dorland, Chris , King, Jeff , Kinser, John , Lorenz, Matt , Hansen, Patrick , Will, Lloyd , dduaran@enron.com, Lavorato, John , Kitchen, Louise , Whalley, Greg X-cc: X-bcc: X-Folder: \JHERNAN3 (Non-Privileged)\Hernandez, Juan\Inbox X-Origin: HERNANDEZ-J X-FileName: JHERNAN3 (Non-Privileged).pst The Southeast RTO orders are out and have followed through with what we exp= ected from the discussion at the FERC meeting. The SPP and Entergy RTO proposals have been rejected because they fail to s= atisfy the scope and configuration requirements of Order No. 2000. The Com= mission notes that the required discussions between SPP and Entergy and it= s neighboring RTO/TOs has led to no increase in the original scope and conf= iguration. The filings by SPP and Entergy were brief, indicating only a la= ck of interest by other RTOs or utilities in joining to enlarge scope; they= failed to specify any details of the talks, what changes could be made or = what could be fixed to accomodate combination with other RTOs. The order s= tates that the Commission favors the development of large, regional transmi= ssion organizations reflecting natural markets. The Commission indicates t= hat they favor four RTOs - NE, SE, MW and West. Therefore the order requir= es the participants in SPP and Entergy to participate in settlement discuss= ions as set out in the mediation order. Note that these meetings will star= t next Tuesday, July 17 before a FERC ALJ. The Southern Company RTO is also found by the FERC to fail the scope charac= teristics of Order No. 2000. The order finds that Southern's approach to f= ocus on MOUs and seams issues with its neighbors is inadequate. The order = states, "We reiterate: the Commission's goal is to have a single RTO in the= Southeast, and to have that single RTO operational as soon as possible." = The Commission recognizes that start-up costs in forming a larger RTO may b= e more, but that over the longer term, large RTOs will foster market develo= pment, will provide increased reliability and will result in lower wholesal= e electricity prices. The order therefore directs the parties to the media= tion as stated above. The Grid South participants are also directed to the mediation which is sta= rting on next Tuesday. It is a lengthier order with more details on other = aspects of RTOs, including Independent Board requirement, congestion managm= ent, interconnection procedures, planning process and CBM. Therefore, I am= attaching a summary of the order. One of the important findings of the or= der is that GridSouth is not sufficiently independent; the Applicant TOs ar= e making policy decisions that should be made by an independent board. The= refore, the order requires GridSouth to install an independent board and fi= le a compliance filing within 90 days. If anyone wants copies of the orders, let me know.