fw ferc meeting summary commission held first open meeting pat wood new chairman today discussed many interesting issues following summary meeting meeting still going provide addendum email updating discussed afternoon regarding market power rtos chairman wood expressed desire finish rto transition commission needs provide guidance leadership order speed rto transition chairman wood considers rto effort two tracks 1 organizational rto organizations look like 2 substantive set organizations organizational effort wood stated effort already begun july 12 orders northeast southeast mediation efforts commission issuing additional orders northeast southeast midwest within next couple ferc meetings wood also stated time rto west desert star marry meaning suppose two consolidate wood think california included western rto yet since lingering problems structural effort commission initiate section 206 proceeding address market design structure issues order translate 8 functions established order 2000 rto structures achieve goal commission establishing rto week advanced workshops october 15 19 advance issuing nopr address structural issues congestion management cost recovery market monitoring transmission planning reliability transmission rights wood also envisions commission develop new pro forma tariff replace existing order 888 transmission tariff new tariff apply public utilities rtos wood also recognized sticks needed entice rto participation therefore wood proposes public utilities come december 15 2001 declaration join rto make declaration entities market based rate authority revoked prospective basis furthermore wood states entities join rtos authorized merge facilities ferc also look rates determine whether still reasonable rates compared rates offered rtos wood states sticks provide incentive mandate rto participation regard pending requests rehearing wood asked legal staff figure ferc get words think wood telling develop legal analysis denying rehearing commissioner breathitt skeptical rto proposals required vote anything today expressed concern upcoming dates october 15 19 rto workshops end october orders northeast southeast midwest rtos december 15 2001 public utilities must commit rto market based rates revoked proposed rule standards conduct within next days ferc issuing notice proposed rulemaking nopr standards conduct transmission providers explained meeting copy nopr yet nopr propose apply standards conduct uniformly electric transmission providers gas pipeline transportation providers similarly nopr also proposes broaden definition affiliate include energy affiliates marketers standards conduct would apply rtos transmission providers members rto may ask exemption standards nopr also likely include proposal standards apply transmission owners marketing affiliates serving native load customers know present standards apply affiliates tos buying selling power native load customers interim general counsel noted marketing affiliates go control room unrestricted interaction discussion whether necessary apply standards affiliates serving native load staff told commissioners market participants complaining years loop hole rules pat wood said include proposal nopr breathitt may support industry support proposal ferc pull course strongly support proposal provision adequate electrical capacity icap chairman wood asked staff prepare presentation reserves installed capacity requirements wood noted commission issue order icap new england recess august familiar issues therefore asked staff prepare presentation made meeting morning presentation made public within next couple days sum staff seems believe type icap requirement needed reliability presentation wood noted new england icap order enough wiggle room allow commission change mind commissioners better understand issue wood sees potential conflict decentralized competitive markets need sufficient supply without politically unacceptable prolonged price spikes commissioner brownell pennsylvania puc better understanding icap expressed concerns icap may outdated tool acts barrier entry without definable benefit customers realizing many positions topic chairman wood said publish staff report ask comments october 17 definitely submit comments include everyone drafting process sorry long lot happened today provide summary market power discussion soon let us know questions sarah