Message-ID: <11667679.1075858703267.JavaMail.evans@thyme> Date: Thu, 18 Oct 2001 18:02:19 -0700 (PDT) From: jose.bestard@enron.com To: andy.rodriquez@enron.com Subject: RE: BOT Support for the ESC and Sector Voting Cc: charles.yeung@enron.com, richard.shapiro@enron.com, d..steffes@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: charles.yeung@enron.com, richard.shapiro@enron.com, d..steffes@enron.com X-From: Bestard, Jose X-To: Rodriquez, Andy X-cc: Yeung, Charles , Shapiro, Richard , Steffes, James D. X-bcc: X-Folder: \RSHAPIRO (Non-Privileged)\Shapiro, Richard\NERC X-Origin: Shapiro-R X-FileName: RSHAPIRO (Non-Privileged).pst Andy. I do not know who Gordon is nor his connections with the rest of the ESC group so I cannot gage the effect of your proposed e-mail to him. This is what I know: The BOT wanted some immediate action, the NERC staff was under pressure (criticism) at the meeting. The inclusion of the ESC mention was an attempt to latch-on to some positive development. NERC wanted to be linked with it and not be left out, (where this effort may be re-directed to EISB for continuation) Some stakeholders smelled a rat, and wanted to link NERC's link to this effort to a new committee voting structure; therefore items 7, 8, and 9 were modified to reflect these comments, and this is how the resolution came out below (see below). The next step will be at FERC to decide how the OASIS 2 work is to continue and under whose leadership. It may not be under the existing ESC group or a reformulation of it. Next week (Tuesday) I would like to review all the interconnected issues so that we provide guidance to ESPA Jose Resolution on the Role of NERC in Developing Market Interface or Commercial Practice Standards (Board Agenda Item 20) WHEREAS, Reliability standards developed by NERC, relying on the expertise of industry experts, have been the basis for the reliable operation of the bulk electric systems in North America for over 30 years; and WHEREAS, With the opening of the transmission systems, the vertical disaggregating of the former monopoly utilities, and the introduction of marketers and independent power producers, NERC has moved proactively to make its standards process more fair, open, balanced and inclusive; and WHEREAS, To support the evolution of competitive electricity markets, the formation of large RTOs, and continued reliability and security of interconnected transmission grids, it is vitally important to standardize and make mandatory both reliability standards and wholesale electric business practice standards; and WHEREAS, NERC has taken a number of proactive steps to deal with the linkages between reliability standards and wholesale electric business practice standards, including spearheading the OASIS "What" and "How" working groups that developed the Standards and Communications Protocols followed by all transmission providers; formed a Market Interface Committee as a new standing committee of NERC to address the impact of reliability standards on markets and the impact of market practices on reliability; and initiated the formation of and facilitates the Electronic Scheduling Collaborative (ESC), which recently filed with FERC a report on their efforts to develop common business practice standards for electronic scheduling (OASIS Phase 2); and WHEREAS, the electric business practice standards being developed by the Electronic Scheduling Collaborative (ESC) are a complement to the new NERC Reliability Model on which NERC's future Organization Standards will be based; and WHEREAS, NERC is recognized and respected as the industry's developer of standards for the reliable planning and operation of interconnected transmission grids throughout North America, and WHEREAS, the Board of Trustees recognizes the urgent need for uniform wholesale electric business practice standards that are well coordinated with reliability standards; and WHEREAS, the NERC Stakeholders Committee has expressed a strong preference for a single organization to develop both reliability standards and wholesale electric business practice standards; BE IT THEREFORE RESOLVED, that NERC: 1. Take all necessary steps to become the single organization in North America to develop both reliability standards and wholesale electric business practice standards through a fair, open, balanced, and inclusive process, and to file such standards with FERC and appropriate government agencies in Canada. 2. Actively solicit cooperation, collaboration, and support from Canadian and U.S. government entities to establish NERC as the single organization in North America for the development of reliability standards and wholesale electric business practice standards. 3. Take immediate action to adopt and implement the six Initial Recommendations of the Standing Committee Representation Task Force contained in Board Agenda Item 22. 4. Facilitate - jointly with interested trade associations; federal, state, and provincial regulators; and other stakeholder organizations - an open and inclusive process to achieve consensus on the definitions and attributes of the functions necessary for the development of wholesale electric industry standards and practices, and on a course of action to institute such capabilities. 5. Interface with state and provincial regulators to address retail operational issues that may affect wholesale electric operations. 6. Build on the results of activities to date regarding the new Reliability Model and new Organization Standards Development Process. 7. Recommend that FERC use the ESC report, which has already been submitted to FERC, as the basis for a notice of proposed rulemaking on electric business practice standards. 8. Urge FERC to make use of the ESC, which will use the new sector weighted voting model approved by the NERC Board, for further development of wholesale electric business practice standards, including standards necessary for certain aspects of RTO design such as congestion management and ancillary services. 9. Commit to continuing to support the work of the ESC until such time as an industry consensus is achieved on how to develop wholesale electric business practice standards within the NERC framework. From: Andy Rodriquez/ENRON@enronXgate on 10/17/2001 11:31 PM To: Charles Yeung/ENRON@enronXgate, Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Darla Steffes/ENRON@enronXgate, Richard Shapiro/ENRON@enronXgate cc: Subject: RE: BOT Support for the ESC and Sector Voting Charles, Jose, Jim, and Rick, I would like to send the letter below out to the ESC. Before I do so, do you have any objections? I would like to put some fire under this issue, as the "new sector weighted voting model" seems to be yet another way to preserve the power of the traditional utility. However, I don't know if we will compromise any of our other positions by stirring this particular pot. Thoughts? Andy Gordon, When did the ESC vote to adopt the "new sector weighted voting model?" Has the ESC been absorbed into NERC, and is the NERC Board ordering them to use this new model? If so, is the ESC a new standing committee? Do they report directly to the board? Just where would the ESC fit in NERC? Unless the ESC votes to change their charter to say they are a group under NERCs control, I don't see how this can move forward as written. The ESC has never been a NERC group, but instead a industry collaborative which NERC has assisted with administrative matters (facilitation, meeting schedules, etc...). If I recall correctly, there was a significant number of people that specifically did not _want_ the ESC to be a NERC group, (APPA, ELCON, EPSA, and a few others, if I remember correctly). This was why the NERC ESTF became the non-NERC ESC. I expect several entities will have comments to make before just handing the keys to NERC. Of course, those comments may have already been made at the Board, and may have been addressed there. But I seriously don't think NERC can just "annex" the ESC without the ESC voting to be annexed. Other members of the ESC - do you share this concern? Andy Rodriquez Regulatory Affairs - Enron Corp. andy.rodriquez@enron.com 713-345-3771 -----Original Message----- From: Gordon Scott [mailto:Gordon.Scott@nerc.net] Sent: Wednesday, October 17, 2001 9:55 AM To: Electronic Scheduling Task Force Subject: BOT Support for the ESC and Sector Voting Importance: High Dear ESC, Attached are two documents from the recent NERC BOT meeting: 1. Board Resolutions; 2. Initial Voting Sectors and Criteria Model. In the Board Resolution document please note items 7, 8, and 9 as they deal directly with the ESC. Thanks, Gordon. <> <>