Message-ID: <7188558.1075840899197.JavaMail.evans@thyme>
Date: Fri, 13 Jul 2001 15:37:15 -0700 (PDT)
From: maureen.mcvicker@enron.com
To: greg.whalley@enron.com, mark.frevert@enron.com, kenneth.lay@enron.com, 
	jeff.skilling@enron.com, john.lavorato@enron.com, 
	louise.kitchen@enron.com, david.delainey@enron.com, 
	janet.dietrich@enron.com, e..haedicke@enron.com, 
	vicki.sharp@enron.com, ginger.dernehl@enron.com, 
	elizabeth.linnell@enron.com
Subject: RTO Orders - Grid South, SE Trans, SPP and Entergy
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X-From: McVicker, Maureen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=C27B8154-AC7AB596-8625693C-57FA68>
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----- Forwarded by Maureen McVicker/NA/Enron on 07/13/2001 05:36 PM -----


Donna Fulton
07/13/2001 02:47 PM

To:=09Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, James D=
 Steffes/NA/Enron@Enron, Christi L Nicolay/HOU/ECT@ECT, Sarah Novosel/Corp/=
Enron@ENRON, Ray Alvarez/NA/Enron@ENRON, sscott3@enron.com, Joe Connor/NA/E=
nron@Enron, Dan Staines/HOU/ECT@ECT, Steve Montovano/NA/Enron@Enron, Kevin =
M Presto/Enron@EnronXGate, Rogers Herndon/Enron@EnronXGate, Mike Carson/Enr=
on@EnronXGate, John M Forney/Enron@EnronXGate, Laura Podurgiel/Enron@EnronX=
Gate, Gretchen Lotz/Enron@EnronXGate, Juan Hernandez/Enron@EnronXGate, Migu=
el L Garcia/Enron@EnronXGate, Rudy Acevedo/Enron@EnronXGate, Heather Kroll/=
Enron@EnronXGate, David Fairley/Enron@EnronXGate, Elizabeth Johnston/Enron@=
EnronXGate, Bill Rust/Enron@EnronXGate, Edward D Baughman/Enron@EnronXGate,=
 Terri Clynes/Enron@EnronXGate, Oscar Dalton/Enron@EnronXGate, Doug Sewell/=
Enron@EnronXGate, Larry Valderrama/Enron@EnronXGate, Nick Politis/Enron@Enr=
onXGate, Fletcher J Sturm/Enron@EnronXGate, Chris Dorland/Enron@EnronXGate,=
 Jeff King/Enron@EnronXGate, John Kinser/Enron@EnronXGate, Matt Lorenz/Enro=
n@EnronXGate, Patrick Hansen/SA/Enron@Enron, Lloyd Will/Enron@EnronXGate, d=
duaran@enron.com, John J Lavorato/Enron@EnronXGate, Louise Kitchen/Enron@En=
ronXGate, Greg Whalley/Enron@EnronXGate

cc:=09=20

Subject:=09RTO Orders - Grid South, SE Trans, SPP and Entergy

The Southeast RTO orders are out and have followed through with what we exp=
ected from the discussion at the FERC meeting.

The SPP and Entergy RTO proposals have been rejected because they fail to s=
atisfy the scope and configuration requirements of Order No. 2000.  The Com=
mission  notes that the required discussions between SPP and Entergy and it=
s neighboring RTO/TOs has led to no increase in the original scope and conf=
iguration.  The filings by SPP and Entergy were brief, indicating only a la=
ck of interest by other RTOs or utilities in joining to enlarge scope; they=
 failed to specify any details of the talks, what changes could be made or =
what could be fixed to accomodate combination with other RTOs.  The order s=
tates that the Commission favors the development of large, regional transmi=
ssion organizations reflecting natural markets.  The Commission indicates t=
hat they favor four RTOs - NE, SE, MW and West.  Therefore the order requir=
es the participants in SPP and Entergy to participate in settlement discuss=
ions as set out in the mediation order.  Note that these meetings will star=
t next Tuesday, July 17 before a FERC ALJ.

The Southern Company RTO is also found by the FERC to fail the scope charac=
teristics of Order No. 2000.  The order finds that Southern's approach to f=
ocus on MOUs and seams issues with its neighbors is inadequate.  The order =
states, "We reiterate: the Commission's goal is to have a single RTO in the=
 Southeast, and to have that single RTO operational as soon as possible."  =
The Commission recognizes that start-up costs in forming a larger RTO may b=
e more, but that over the longer term, large RTOs will foster market develo=
pment, will provide increased reliability and will result in lower wholesal=
e electricity prices.  The order therefore directs the parties to the media=
tion as stated above.

The Grid South participants are also directed to the mediation which is sta=
rting on next Tuesday.  It is a lengthier order with more details on other =
aspects of RTOs, including Independent Board requirement, congestion managm=
ent, interconnection procedures, planning process and CBM.  Therefore, I am=
 attaching a summary of the order.  One of the important findings of the or=
der is that GridSouth is not sufficiently independent; the Applicant TOs ar=
e making policy decisions that should be made by an independent board.  The=
refore, the order requires GridSouth to install an independent board and fi=
le a compliance filing within 90 days.

If anyone wants copies of the orders, let me know.



=20
