text_combined: fw northeast rto mediation report fyi original message novosel sarah sent tuesday september 18 2001 8 36 kean steven j shapiro richard steffes james nicolay christi l lindberg susan robertson linda fulton donna alvarez ray connor joe staines dan stroup kerry migden janine walton steve comnes alan mara susan maurer luiz philipp meredith cc allegretti daniel hoatson tom fromer howard subject northeast rto mediation report yesterday afternoon september 17 judge northeast rto mediation proceeding issued report commission 45 day mediation session although unexpected still disappointing judge endorses market design proposal new york new england isos market design proposal encompasses long drawn process discussing northeast market look like minimum 12 months work begins develop new rto target implementation date isos november 2004 proposal clearly states time frame subject extension new design requirements introduced believe true intent isos delay indefinitely process order retain three existing iso structures copy judge report business plan attached one good aspect judge report asks several areas report commission guidance believe necessary became quite evident early mediation proceeding going agree new york entities new england iso market design governance argued ferc intended new market design primarily pjm system enhancements possible others relying ambiguity ferc orders argued ferc really intended create new system using pjm platform pulling heavily two isos regardless time complication creating new market need ferc direction judge makes clear background judge primary goal 45 day mediation process simply establish business plan lays single northeast rto created enron along many participants opposed approach arguing wasting 45 days given us commission judge acknowledges report significant opposition approach thinks worked perfectly although majority judge report business plan focuses mainly process creating business plan discuss two substantive issues market design governance market design beginning mediation pjm ny ne submitted joint proposal forming single northeast rto proposal envisions time intensive approached designed reach agreement stakeholders implementation date 3 4 years option 1 business plan proposal supported new england new york isos pjm approach see new york transmission owners also submitted proposal implementing new rto 3 years option 2 business plan pjm submitted alternative proposal creating implementing single northeast rto single day ahead real time energy market november 2003 option 3 business plan took lead creating coalition marketers generators pjm tos industrials end use customers one rto coalition advocating creation single energy market based pjm system december 2002 later may 2003 although enron believe pjm november 2003 time frame conservative coalition supports option 3 pjm approach since achieves coalition goals albeit slower timetable noted judge endorses option 1 part built process determining best practices although pjm also conducted best practices analysis isos ny tos agree pjm determinations practices isos best practices judge acknowledges support option 3 pjm plan far outstrips options diversity extent stakeholder support however judge believes pjm option assumes pjm platform work new york new england even though generation divestiture load pocket issues new york new england pjm judge states impatience haste greed permitted drive rto process expense sound policy optimal rto benefits sacrificed order allow exploit immediate economic opportunity sprint see report page 18 governance substantive issues discussed governance interim governance final governance board make stakeholder process judge opted endorse one options proposed instead discusses pros cons option judge strongly urges commission provide guidance participants commission preferred governance approach judge also suggests settlement judge may helpful assisting stakeholders finalizing governance procedures pjm stated order meet deadline november 2003 certainly earlier pjm control implementation new rto pjm proposes new board made board members existing isos 5 pjm 3 new york 2 new england board elects voting ceo assumed phil harris pjm proposal wins ny iso new england iso ny psc ny tos new england tos along entities primarily afraid cross new york psc support equal representation new board one proposal would 3 board members iso non voting ceo proposal would 3 board members iso 4 additional board members elected stakeholders support pjm board make proposal ensure fast transition single northeast rto energy market based pjm system post mediation judge report recommends commission issue order resolving many issues dispute possible establish proceedings auspice settlement judge judge urges commission accept comments participants acknowledges participants want opportunity comment working two sets comments one one conjunction one rto coalition circulate drafts soon prepared although disappointed judge endorse pjm proposal still believe commission intent implementing single northeast rto soon possible pjm proposal provides well reasoned even conservative approach reaching goal therefore even though judge sided new york hopeful commission stick guns go pjm proposal please call one us questions would like discuss report sarah dan howard tom