Subject: ferc ' s press release re : southern rto
attached is ferc ' s press release on southern rto .
the ferc did the right thing in not approving this rto , but clearly they missed a golden opportunity to mandate gridsouth and southern rto joining together . another signal that more pressure is required to get ferc to open up these transmission markets .
jim
- - - - - forwarded by james d steffes / na / enron on 03 / 17 / 2001 11 : 28 am - - - - -
christi l nicolay @ ect 03 / 15 / 2001 11 : 11 am to : ozzie . pagan @ enron . com , heather . kroll @ enron . com , david . fairley @ enron . com , george . mccormick @ enron . com , wjennin @ enron . com , joseph . wagner @ enron . com , elizabeth . johnston @ enron . com , bill . rust @ enron . com , reagan rorschach / na / enron , edith cross / hou / ect @ ect , berney c aucoin / hou / ect @ ect , jennifer bagwell / na / enron , billy braddock / na / enron , joe connor / na / enron @ enron , tom chapman / hou / ect @ ect , james d steffes / na / enron @ enron , ron mcnamara / na / enron @ enron , mike roan / enron @ enronxgate , thane twiggs / enron _ development @ enron _ development , rogers herndon / hou / ect @ ect , john m forney / na / enron @ enron , mike carson / corp / enron @ enron , laura podurgiel / hou / ect @ ect , richard shapiro / na / enron @ enron , steven j kean / na / enron @ enron cc : subject : ferc ' s press release re : southern rto
the federal energy regulatory commission rejected two key elements of
southern company services , inc . ' s proposed regional transmission organzation ( rto )
and encouraged the company to explore joining neighboring utilities in an rto for the
southeast . the commission did not act on other issues raised by southern .
southern ' s proposal for a for - profit gridco ( grid company ) that would include only
new wholesale transmission services and have the benefits of certain rate incentives
going to others rather than the rto operator are inconsistent with ferc ' s rto policy ,
the commission said . under southern ' s proposal , existing owners ' transmission facilities
related to bundled retail service or native load would not be under the gridco ' s control .
as a result , the vast majority of total transmission load would not be under the rto ' s
tariff , operation or direction .
the rto rule requires all transmission facilities operate under the transco . in
addition , southern could not plan , design and operate a regional grid in a manner that
maximizes efficiency if the transco controlled only a small part of the rto load , the
commission said in rejecting southern ' s proposal .
as an alternative to filing a revised rto proposal , the commission asked that
southern consider joining neighboring utilities in an rto in the southeast . the
commission directed southern to file a report by july 13 , 2001 , on progress in forming a
southeastern rto .