Subject: Report on CREPC Meeting and FERC Infrastructure Conferences in Seattle
From: [email-masked]
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Date: Fri, 2 Nov 2001 22:43:12 -0800 (PST)

The FERC Infrastructure Conference in Seattle was planned to coincide with the dates of the meeting of the Western Commissions and Energy Offices, the Committee on Regional Electric Power Cooperation (CREPC).  Enclosed you will find my meeting notes from both the CREPC meetings on Wednesday and Thursday (Oct 31 and Nov 1) and the FERC Conference on Friday (Nov 2).  

The first day of the CREPC meeting dealt with development of a protocol for joint efforts on transmission line siting.  The Western regulators are united in their opposition to Federal pre-emption of siting.  Their view is that biggest problem in the past has been warring federal agencies not the states.  FERC Staff said that Wood and Brownell are not seeking such authority.

The second day of the CREPS meeting was on RTO seams issues.  The work being done to enable three RTOs to work together was presented.  The States want FERC to let the three form initially.  Some state want to go slow.  (If we were going any slower we would be dead in the water.)  Brownell attended all day and Wood attended in the afternoon.  Both were complimentary of the level of work that been done.  Wood asked several times about problems with three organizations.

Chairman Wood convened the FERC Infrastructure Conference by stating that when he and Brownell went to the Commission, both as advocates of markets, they were forced to voting on price mitigation.  These Infrastructure Conferences are being organized to gather facts.  He said he never wants to have to vote on price mitigation again because basic infrastructure has not been addressed.  Both Governors Hull (AZ) and Locke (WA) addressed the conference.  Hull wants Federal hands off and Locke says benefits of moving ahead with "experimental new organizations" are small compared to harm done of making a mistake.  The panels during the day were primarily opportunities for invited parties to express their concerns with what needs to be built and what impediments are in place.  Both gas and electricity were addressed.  The panels and the State regulators again opposed federal siting pre-emption for transmission lines and supported three RTOs.  The general view is that more transmission and gas pipeline is needed.  There was also broad support for demand bidding/demand side programs as part of the solution.  A good deal of praise was give by FERC for the WGA study.  The study of financing methods for new transmission was the next promised step in the process.  I am on that committee and next week will be submitting comments on the initial draft.  

I have updated Sarah's form for this project.  The Commission will issue a transcript and will accept comments, although no dates were given for when.  After you review the meeting notes, please indicate if you think we should submit comments on infrastructure  expansion.

Steve

Project:  Conference on Energy Infrastructure in the West

Conference									November 2, 2001

Comments on RTO Week							May be submitted, no deadlines yet.

Estimated Date for Draft Circulation (and who is responsible for the first draft)	???

Estimated Date for FERC Action						None expected.