Message-ID: <13801808.1075859542322.JavaMail.evans@thyme> Date: Thu, 7 Dec 2000 08:43:00 -0800 (PST) From: steve.walton@enron.com To: richard.ingersoll@enron.com Subject: Re: Seams - Western Connection Interface (WIO) Cc: mary.hain@enron.com, alan.comnes@enron.com, christian.yoder@enron.com, elizabeth.sager@enron.com, james.steffes@enron.com, joe.hartsoe@enron.com, marcie.milner@enron.com, paul.kaufman@enron.com, steve.c.hall@enron.com, tom_delaney@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: mary.hain@enron.com, alan.comnes@enron.com, christian.yoder@enron.com, elizabeth.sager@enron.com, james.steffes@enron.com, joe.hartsoe@enron.com, marcie.milner@enron.com, paul.kaufman@enron.com, steve.c.hall@enron.com, tom_delaney@enron.com X-From: Steve Walton X-To: Richard Ingersoll X-cc: Mary Hain, Alan Comnes, Christian Yoder, Elizabeth Sager, James D Steffes, Joe Hartsoe, Marcie Milner, Paul Kaufman, steve.c.hall@enron.com, Tom_Delaney@enron.com X-bcc: X-Folder: \Elizabeth_Sager_Dec2000\Notes Folders\Notes inbox X-Origin: Sager-E X-FileName: esager.nsf I have been out of the loop on WIO for sometime, so I am not well informed on the governance. When last I dealt with WIO, it was to be a standards organization with no operational authority. I don't think there is a problem with a stakeholder board in that case. If however, the board has operation authority, not just standards and review of compliance, than perhaps an indepent board is required. Steve From: Richard Ingersoll on 12/06/2000 11:58 AM MST To: Mary Hain/HOU/ECT@ECT cc: Alan Comnes/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Marcie Milner/Corp/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Steve Walton/HOU/ECT@ECT, steve.c.hall@enron.com, Tom_Delaney@enron.com Subject: Re: Seams - Western Connection Interface (WIO) I do not know who has agreed tothe governance. At meetings I have gone to and in inhouse e mails I have opposed the make up of the proposed Board It lacks independence and has two transmission segments. Mary Hain 12/04/2000 02:33 PM To: Joe Hartsoe/Corp/Enron@ENRON, Christian Yoder/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, James D Steffes/NA/Enron@Enron, Tom_Delaney@enron.com, Marcie Milner, Paul Kaufman/PDX/ECT@ECT, Steve Walton/HOU/ECT@ECT, steve.c.hall@enron.com, Elizabeth Sager/HOU/ECT@ECT, Richard Ingersoll/HOU/ECT@ECT cc: Subject: Seams - Western Connection Interface (WIO) Because WIO will be deciding issues involving the primary congested paths in the West, I believe the issues to be resolved by WIO may be very important. Accordingly, I have argued in-house (to anyone who will listen) that we should be arguing that WIO should be independent. I don't believe that it is independent, it's a stakeholder board, like California and the WSCC, both of which we have had problems with. Historically, a number of people have worked on WIO. Tom worked on it for a while. Recently, I think Marcie Milner has been monitoring the meetings. I think Steve Walton and DIck Ingersoll may also be following WIO to some degree. Also Jim has suggested to Alan that he might want to be following "seams" issues. A while ago Marcie asked me to review the governance structure. I told her that I didn't like the lack of independence and suggested that we oppose it. Nonetheless, I believe I was told that we had already agreed to it. From: Joe Hartsoe@ENRON on 12/04/2000 12:55 PM CST To: Mary Hain/HOU/ECT@ECT cc: Subject: Western Connection Interface (WIO) Mary -- Your thoughts? Who has historically been in charge of the WIO effort? Thanks Joe ----- Forwarded by Joe Hartsoe/Corp/Enron on 12/04/2000 12:53 PM ----- Christian Yoder@ECT 12/04/2000 12:42 PM To: Joe Hartsoe/Corp/Enron@ENRON cc: Subject: Western Connection Interface (WIO) Elizabeth has not read this yet.----cgy ---------------------- Forwarded by Christian Yoder/HOU/ECT on 12/04/2000 10:27 AM --------------------------- Steve C Hall 12/04/2000 10:39 AM To: Christian Yoder/HOU/ECT@ECT cc: Subject: Western Connection Interface (WIO) ---------------------- Forwarded by Steve C Hall/PDX/ECT on 12/04/2000 10:44 AM --------------------------- Steve C Hall 11/30/2000 05:17 PM To: Christian Yoder/HOU/ECT@ECT cc: Subject: Western Connection Interface (WIO) Christian, Earlier this week you asked me to review a stack of documents (proposals and draft bylaws) relating to the proposed Western Interconnection Organization. Conclusion: Based upon a quick review of the draft proposal, bylaws, and other materials, I see no major objections to Enron voting for the formation of the WIO. The reason to vote for this organization would be to facilitate the development of uniform reliability standards and efficient electric markets in the Western Interconnection. However, you should carefully consider the fact that the board of directors will be weighted towards transmission owners (who will have 8 of the 27 votes). Power marketers, generators, and load-serving entities will only have 4 votes. 14 directors establish a quorum and the board only requires a majority vote of directors present, so it is conceivable that, for example, 15 directors show up, 8 of which are transmission owners, and the transmission owners are able to pass any resoultion they wish. Related to this issue is the inability of one membership group, such as the power marketer's group, to be able to veto a proposal. It will take three membership classes acting in unison, plus two other votes, to defeat a proposed action by the board. Unfortunately, because I am not personally familiar with the internal dynamics of the WSCC membership, I am unable to offer any indication of the how much of a risk this presents. Background and Overview In General: The Western Interconnection Organization ("WIO") will be formed by consolidating the Western Regional Transmission Association, the Southwestern Regional Transmission Association, the Northwestern Regional Transmission Association, and the Western States Coordinating Council (WRTA, SWRTA, NRTA, and WSCC, respectively) into one organization. The WIO, a non-profit corporation, will assume and perform the functions of these organizations, and, eventually, those organizations will be disbanded. The principal responsibilities of the WIO will be as follows: *The WIO will be the primary authority for promulgating regional reliability, operating, and procedural standards. *The WIO will work to resolve conflicting regional reliability standards, and work to develop compatible and efficient practices throughout the Western Interconnection. *The WIO will have no authority over commercial practices (but may work to promote compatible, efficient markets). *Provide a process for resolving disputes arising out of WIO functions and between WIO members. Membership: Any entity meeting the criteria for membership in one of the following membership classes may be Member of the WIO. There are five classes of membership: (1) Business entities owning more than 1000 miles of transmission lines, (2) Business entities owning less than 1000 miles of transmission lines; (3) Business entities that do not own, control, or operate transmission or distribution lines, e.g., power marketers, load-serving entities, independent power producers; (4) End users of electricity; and (5) Representatives of States and Provinces in the Western Interconnection. *Each class elects four (4) directors. *All of the classes select seven (7) non-affiliated directors, for a total of twenty-seven (27) directors. Quorum: A majority of all members, including a majority in at least three classes. In the case of directors, there must be 14 directors. Board Decisions: A board decision requires a majority of the directors present. Standing Committees: There are three standing committees: the Planning Coordination Committee, the Operating Committee, and the Market Interface Committee. Committee Voting: For purposes of voting on recommendations to the board, committees are divided into three classes: (1) transmission providers, (2) transmission customers, and (3) States and Provincial Members (which is Class 5). In order to make a recommendation to the board, there must be a simple majority of votes from the transmission provider and transmission customer classes. Termination: The WIO can be terminated upon a vote of the majority of the members.