fw judge final se rto mediation report cn summary fyi original message nicolay christi l sent tuesday september 18 2001 8 45 shapiro richard subject fw judge final se rto mediation report cn summary original message nicolay christi l sent monday september 10 2001 7 09 pm presto kevin kitchen louise lavorato john carson mike lloyd may tom davis mark dana sturm fletcher j herndon rogers kean steven j shapiro richard steffes james robertson linda guerrero janel shortridge pat shelk john novosel sarah fulton donna roan michael palmer mark pr nord sue lindberg susan duran w david kroll heather fairley david connor joe maurer luiz jacoby ben staines dan montovano steve robinson marchris migden janine stroup kerry robertson linda portz david sager elizabeth nettelton marcus acevedo rudy comeaux keith forney john garcia miguel l hernandez juan lotz gretchen marshall howard rorschach reagan rust bill meyn jim walton steve perrino dave comnes alan jafry rahil forster david baughman edward subject judge final se rto mediation report cn summary alj submits report ferc obtain ferc review southeast power grid platform resulted mediation judge final recommendations ferc consider adoption grid model one enron likes best fullest extent possible remaining unresolved issues addressed continued stakeholder process however since complete consensus reached ferc provide determination two models best meets ferc expectations platform se power grid rto done ferc quickly delay regardless model ferc encourage collaborative process thinks done parties without ferc intervention except extent respond ferc orders think ferc staff involved get bogged parties reconvene within 15 days ferc order adopting model ferc order direct participants like us submit joint proposal within 45 days thereafter recommends ferc parties allowed file comments ferc within 20 days however recommends permitting reply comments since may prove counterproductive collaborative nature mediation process commission issue order adopt recommendations may reject recommendations change something would expect commission would adopt many recommendations allowing mediated type discussions issues hopefully ferc adopt many suggested changes judge mccartney basically describes proposals grid group southern etal group provides stakeholder participants comments almost verbatim submissions states process keep moving quickly adopt timeframes comment ferc retain dec 02 day 2 start date lmp financial rights congestion model implemented attachments report southern etal proposal grid pricing congestion management operating planning protocols without changes clearly response ferc include proposed changes documents highlights report recommends spp pursue rto coalition midwest encourages ferc continue encourage utilize collaborative process accommodates stakeholders state utility commission input regardless rto platform ultimately adopted ferc opinion grid entergy gridsouth gridflorida utility sponsored model transco rto lmp financial rights congestion management better developed clearly compliance requirements order 2000 based best practices analysis rtos commission precedent good enron generally favors grid model however provide commission information southern etal proposal independent system administrator like national grid type report even though concerns southern etal model order 2000 compliant southern etal model hybrid physical congestion management day ahead balanced schedule requirements lmp real time penalties significant control area responsibilities significant aspects grid model discussed grid governance rto profit transco independent board enhancement independent market administrator ima ima added facilitate public power participation worried transmission owner top even divested generation would favor transmission solutions generation transmission solution ima would administer markets exercise operational authority transmission system administer one oasis one process interconnection transmission requests assume security coordinator function strongly encourages split good stakeholder advisory committee provides majority minority views independent market monitor monitor rto markets allows independent transmission companies entergy wants one rto oversight describes control area operators initially maintain control areas physical operation switching transmission elements pursuant operating procedures approved rto ima recognizes consolidation control areas may occur rto matures protocols subject discussion rto transco primary responsibility tariff administration including rate changes tariff filings load rates terms conditions oatt gridsouth group appealed part earlier commission orders thus retains rights win appeal 4 transmission pricing zones initially entergy southern gridsouth gridflorida allows participant funded direct assigned merchant transmission transmission rates loads rto zonal existing facilities regional charge new facilities one rate plus grid management charge rto operation encourages conversion existing transmission agreements oatt financial rights lmp includes real time spot market clearly preferred model represents best practices model pjm spp many details need worked continued discussions model allows parties transact bilaterally provides financial congestion hedges fch stakeholder process needs continued fch allocation auction non discriminatory release grid model includes balancing resource requirement provide comments allow establishment markets ancillary services supported control area operators required provide market establishment rto runs single oasis independently calculates atc ttc rto transco responsible planning participatory stakeholder process numerous comments marketers ipps reduction control area functions comments last week response included judge mccartney numerous meetings state commissioners 1 many still concerned ferc conducted cost benefit analysis concerns costs responds extrapolation costs entire se rto seems unwarranted ignores economies scale initial reliance existing control centers infrastructure event ferc could explore feasibility rate setting process would involve state commissions 2 concerned cost shifting mediation team discussed phase rates commission allowed 3 concern se rto would preempt state ability approve asset transfers rto want state retail customers receive full value assets 4 concern se rto may prematurely put southern states retail open access concerns cal judge encourages commission utilize collaborative process includes input state commissioners think message press discussions tomorrow focus extremely beneficial aspects mediation significant jump start gave se rto process due significant role played judge mccartney team focusing discussions furthermore initial results 45 days show majority participants favoring best practices pjm spp cornerstone type real time spot energy market lmp pricing financial congestion hedges rto independent board structure accommodates profit rto entity significant stakeholder advisory process commission consider utilize fundamentals resulting mediation regions minimum consider similar mediated jump starts original message bobbie mccartney mailto bobbie mccartney ferc fed us sent monday september 10 2001 4 05 pm mddesselle aep com john cohen bakernet com mcrosswh balch com dex bbrslaw com fhr bbrslaw com fochsenhirt bbrslaw com mrossi bdrnet com jlphillips calpine com jregnery calpine com tkaslow calpine com oharac dsmo com mary doyle dynegy com jhughes elcon org nicolay christi l jcashin epsa org charles _ askey fpl com steved gdsassoc com ghobday hhlaw com jschneid huberlaw com richard spring kcpl com jpalermo kemaconsulting com rlamkin llgm com relliott mbolaw com beth bradley mirant com ndaggs mwe com paul savage nrgenergy com ron _ lanclos oxy com billdegrandis paulhastings com marycochran psc state ar us pauline foley pseg com linxwilerj safferassoc com twoodbury seminole electric com bobg sepa doe gov leer sepa doe gov msmith sf firm com glbernst skadden com gary newell spiegelmcd com nbrown spp org dacrabtree tecoenergy com jrdalrymple tva gov jpwest westlawpc com jane mudgett williams com small wrightlaw com cc herbert tate jonathan siems laura sheppeard subject final se rto mediation report pursuant agreement parties service attached document hereby effected restricted service list previously approved docket via email please note total six attachments five sent via email 6 th attachment two page copy tva mou accessed rims provided via fax upon request want take opportunity thank parties hard work dedication throughout arduous sometimes difficult mediation process pleasure work judge mccartney