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Date: Tue, 13 Feb 2001 06:09:00 -0800 (PST)
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Subject: FERC approves Southern's source and sink/interconnection procedures
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Effective February 13, FERC approved the Southern Source and Sink 
restrictions, without comment other than stating that they mirrored Entergy's 
restrictions, approved last year.  Commissioner Massey concurred stating that 
this order is consistent with the Entergy precedent; however, he reiterated 
that this shows a flaw in OATT structure that gives LSEs a competitive 
advantage.  Massey calls on the RTO proposals to remedy this flaw.

Other issues:

Approved Interconnection procedures w/ these changes:  

 -- While interconnection conveys no delivery service (must reserve 
transmission through OASIS), interconnection conveys an ongoing right to 
access the transmission system at the receipt point

 -- Requires Southern to provide credits for upgrades and explain its policy 
(interconnection customers only required to pay for "but for" interconnection 
costs)

 -- Southern will post required generator information on its OASIS and will 
allow customers 15 days to respond to requests for additional information 
without losing the queue position

 -- Cutoff for additional studies is execution of interconnection agreement 
(or date of filing unexecuted agreement)

 -- Identities of generators will not be posted on the queue

Approved creditworthiness procedures with a credit quality of BBB+/Baa1 (LCs, 
guaranty, prepayment also allowed)

Copy of order is attached.


 - ER01-668.00A.WPD