fw rto week summary congestion management panel fyi claudette tj please forward groups thanks original message novosel sarah sent tuesday october 16 2001 10 46 pm novosel sarah presto kevin davis mark dana may tom lloyd lindberg susan gupta gautam misra narsimha scheuer janelle baughman edward herndon rogers cc nicolay christi l subject rto week summary congestion management panel rto week day 2 october 16 2001 congestion management transmission rights morning panel discussion congestion management panelists nancy brockway commissioner new hampshire psc reem fahey edison mission carol guthrie chevron texaco shmuel oren university california berkley advises texas puc andy ott pjm michael schnitzer northbridge group general observations commissioners present wood left mid morning give testimony capitol hill today however ferc staff much active discussion commissioners asked questions topics interrelated many issues already discussed rehashed probably continue rest week found encouraging far widespread support basic concepts notably need real time energy market based using lmp panelists opposed couple panelists argued real time market standardized basically conceding pjm system implemented northeast urging mandated everywhere else locational marginal pricing panelists agreed lmp real time market necessary schmuel oren oppose panelists think needs standardized across rtos andy ott says seams remain problem barrier trading real time market standardized carol guthrie favor standardization urged ferc standardize pjm system throughout eastern interconnect said ferc try couple different systems see works ftrs versus flowgates panelists agreed transmission rights financial physical schmuel conceded point discussion may preference unclear panelists including psc commissioner prefer ftrs rather flowgates schmuel flowgate advocate discussion panelists agreed ftrs flowgates could work together provided definition flowgate understood andy ott said flowgates could work ftrs purpose flowgates purpose hubs liquidity standard product flowgate defined grouping point point rights ftrs flowgates coexist flowgate hub transmission rights okay however flowgate defined physical boundary requiring scheduling two coexist schmuel seemed agree premise although preference seems prefer flowgates without ftrs brockway seems prefer ftrs rather flowgates fear flowgates result excess socialization costs panelists also agreed generally revenues generated ftrs flowgates allocated load method allocation agreed upon ferc staff asked panelists discuss commercially significant flowgates many panelists discussed problem deciding constitutes commercially significant flowgate happens circumstances change time resulting different flowgates commercially significant schmuel said could use either system relies commercially significant flowgates one uses flowgates participants willing accept system perfectly hedged use commercially significant flowgates acceptable panelists agreed financial rights either ftrs flowgates tradable secondary market panelists disagreed instrument ftrs flowgates tradable andy thinks ftrs tradable schmuel thinks flowgates tradable options versus obligations panelists discussed benefits ftrs options also discussed additional problems presented system operator ftrs options ftr holder required flow pay flow andy ott said options likely result fewer ftrs allocated schnitzer says issue must resolved front afternoon panel transmission planning expansion steve walton panelist providing summary discussion shortly let know questions sarah