fw summary rto week day 2 planning expansion fyi tj claudette please forward groups thanks original message walton steve sent wednesday october 17 2001 10 17 pm rto week day 2 october 16 2001 transmission planning expansion afternoon panel discussed transmission planning expansion panelists jose degado ceo american transmission company michael dworkin chair vermont psc mark maher vp transmission business line bonneville power administration lara manz pse g masheed rosenqvist national grid steve walton enron general observations commissioners present although leave return time time commissioner breathitt massey active questioning ferc staff active asking questions initial presentations moving along discussion asking questions reference morning discussion congestion management however discussion merits various types transmission rights good deal consensus around concept rto planning process first provider information market problems might solved etc possible expansion funded market participants would benefit good deal discussion least cost planning identification options transmission related agreed backstop authority build transmission however challenge pays raises need dispute resolution opening statements jose delgado atc transmission company miso system operator view everyone customer whose needs met formed divestiture ious coops munis 500 million asset base initially current ten year plan add 1 billion investment top priorities connecting generation load michael dworkin transmission common good construction affects parties one party environmental permitting lines requires balance benefits costs long range view idea joint boards considered dealing multi state projects although ferc show little interest joint boards used fcc state input needed local needs impacts must considered mark maher ferc must consider unique characteristics west considering congestion management lmp good fit hydro systems multiple use obligations rto west developing planning process give rto freedom develop options learn future rto needs strong centralized planning process laura manz various aspects planning connected pricing lmp key getting right signals expansion transmission resources competitor advantage another rto needs central planning process push solutions market decide solutions masheed rosenqvist morning discussion congestion management talked hedging risk planning discussion avoid future congestion commission taken conflicting positions different cases issues need answered merchant transmission compensated transmission projects open rfps ferc open market based pricing expansions steve walton important thing ferc expansion settle matter industry structure away uncertainty frozen transmission investment rto debate going 5 years needs settled expansion go forward needs clear property right accrues expanding party always going muddy issues planning instance 138 kv line needed day future considerations scare right way say 345 kv line built pays extra cost order resolve matters planning process must include dispute resolution process appeal able ferc decide matters discussion kevin kelly asked fact parties benefit form current congestion stakeholder process get things built oppose agreed party wants fund construction built beneficiaries funding michael dworkin expressed concerns use eminent domain build means benefit test must exist say best solution e least cost planning lead discussion need rto provider information parties make intelligent decisions commissioner massey asked whether system built needed lots expansion worry overbuilding b transmission planning consider options construction new facilities panel agreed pricing needs prime determinant process michaela dworkin worried overbuilding distorts decisions laura manz felt term built secondary effect proper pricing locational prices guide parties dick neil asked lmp work west mark maher said laura manz said applies everywhere physics manage hydro facilities pjm michael dworkin said lmp means explicit measure cost congestion value generation locations ought rejected intelligently designed bpa looking pricing model lmp work steve walton said lmp needed real time dispatch given nature northwest hydro system must tweaks like bilaterals allow operator self schedule output levels permit river coordination hydro system optimizes weeks months maximize firm energy production hour hour basis pjm hydro 70 northwest implementation different thing unit commitment different primarily hydro base load coal summation end panel four principles listed 1 rto must provide information 2 rto identify solutions 3 rto unbiased 4 rto accountable disagreement last two points michael dworkin felt 3 unbiased critical 4 accountability accomplished regulators involved governance jose delgado said transco unbiased since provides services although iso accountability based loosing investment make mistake last point really comes preference iso transco forms tension exist unbiased accountability issues steve