Message-ID: <13972310.1075840899301.JavaMail.evans@thyme>
Date: Fri, 13 Jul 2001 12:47:20 -0700 (PDT)
From: donna.fulton@enron.com
To: steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, 
	christi.nicolay@enron.com, sarah.novosel@enron.com, 
	ray.alvarez@enron.com, dan.staines@enron.com, 
	steve.montovano@enron.com, m..presto@enron.com, 
	rogers.herndon@enron.com, mike.carson@enron.com, m..forney@enron.com, 
	laura.podurgiel@enron.com, gretchen.lotz@enron.com, 
	juan.hernandez@enron.com, l..garcia@enron.com, 
	rudy.acevedo@enron.com, heather.kroll@enron.com, 
	david.fairley@enron.com, elizabeth.johnston@enron.com, 
	bill.rust@enron.com, d..baughman@enron.com, terri.clynes@enron.com, 
	oscar.dalton@enron.com, doug.sewell@enron.com, 
	larry.valderrama@enron.com, nick.politis@enron.com, 
	j..sturm@enron.com, chris.dorland@enron.com, jeff.king@enron.com, 
	john.kinser@enron.com, matt.lorenz@enron.com, 
	patrick.hansen@enron.com, lloyd.will@enron.com, 
	louise.kitchen@enron.com, greg.whalley@enron.com
Subject: RTO Orders - Grid South, SE Trans, SPP and Entergy
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X-From: Fulton, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=CDE8DAE-A0B9AB37-862566B7-7A1609>
X-To: Kean, Steven </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=B86DC838-ECAFDC13-8625693C-57FA6D>, Shapiro, Richard </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=6CEDF0C-82C4A03C-8625696C-7693A4>, Steffes, James </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=AFB3D0FA-CCB03D20-86256962-56FDA5>, Nicolay, Christi </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=5836B2AD-ED2E830F-86256502-7152CC>, Novosel, Sarah </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=E8015336-2D09A27C-862566B9-5830A9>, Alvarez, Ray </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=EBE4476B-2D94882A-86256A14-75FF3B>, sscott3@enron.com, Connor, Joe </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=6CF50559-DFFC0582-86256946-702ACF>, Staines, Dan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DSTAINE>, Montovano, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=678E2C3A-8CB4FFD1-8625697C-77364C>, Presto, Kevin M. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=KPRESTO>, Herndon, Rogers </O=ENRON/OU=NA/CN=RECIPIENTS/CN=RHERNDO>, Carson, Mike </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MCARSON2>, Forney, John M. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JFORNEY>, Podurgiel, Laura </O=ENRON/OU=NA/CN=RECIPIENTS/CN=LPODURG2>, Lotz, Gretchen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=GLOTZ>, Hernandez, Juan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JHERNAN3>, Garcia, Miguel L. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MGARCIA6>, Acevedo, Rudy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=RACEVED>, Kroll, Heather </O=ENRON/OU=NA/CN=RECIPIENTS/CN=HKROLL>, Fairley, David </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DFAIRLE>, Johnston, Elizabeth </O=ENRON/OU=NA/CN=RECIPIENTS/CN=EJOHNST2>, Rust, Bill </O=ENRON/OU=NA/CN=RECIPIENTS/CN=BRUST>, Baughman, Edward D. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=EBAUGHM>, Clynes, Terri </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TCLYNES>, Dalton III, Oscar </O=ENRON/OU=NA/CN=RECIPIENTS/CN=ODALTON>, Sewell, Doug </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DSEWELL>, Valderrama, Larry </O=ENRON/OU=NA/CN=RECIPIENTS/CN=LVALDER>, Politis, Nick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NPOLITIS>, Sturm, Fletcher J. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=FSTURM>, Dorland, Chris </O=ENRON/OU=NA/CN=RECIPIENTS/CN=CDORLAN>, King, Jeff </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JKING6>, Kinser, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JKINSER>, Lorenz, Matt </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MLORENZ>, Hansen, Patrick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=4CE722EC-20206DFD-86256908-664FD2>, Will, Lloyd </O=ENRON/OU=NA/CN=RECIPIENTS/CN=LWILL>, dduaran@enron.com, Lavorato, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JLAVORA>, Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=LKITCHEN>, Whalley, Greg </O=ENRON/OU=NA/CN=RECIPIENTS/CN=GWHALLE>
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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.



