Message-ID: <24432612.1075853057314.JavaMail.evans@thyme>
Date: Wed, 24 Oct 2001 15:54:59 -0700 (PDT)
From: nancy.bagot@enron.com
To: janet.butler@enron.com, martha.benner@enron.com, lynn.blair@enron.com, 
	jack.boatman@enron.com, bill.cordes@enron.com, 
	shelley.corman@enron.com, christi.culwell@enron.com, 
	shonnie.daniel@enron.com, mary.darveaux@enron.com, 
	rick.dietz@enron.com, dari.dornan@enron.com, 
	john.dushinske@enron.com, sharon.farrell@enron.com, 
	drew.fossum@enron.com, donna.fulton@enron.com, 
	john.goodpasture@enron.com, steven.harris@enron.com, 
	joe.hartsoe@enron.com, glen.hass@enron.com, robert.hayes@enron.com, 
	rod.hayslett@enron.com, bambi.heckerman@enron.com, 
	theresa.hess@enron.com, robert.hill@enron.com, 
	bradley.holmes@enron.com, staci.holtzman@enron.com, 
	stanley.horton@enron.com, martha.janousek@enron.com, 
	steve.january@enron.com, robert.kilmer@enron.com, 
	frazier.king@enron.com, steve.kirk@enron.com, tim.kissner@enron.com, 
	laura.lantefield@enron.com, blair.lichtenwalter@enron.com, 
	michael.loeffler@enron.com, phil.lowry@enron.com, 
	ruth.mann@enron.com, donna.martens@enron.com, 
	dorothy.mccoppin@enron.com, w..mcgowan@enron.com, 
	kay.miller@enron.com, sheila.nacey@enron.com, 
	ets <.nelson@enron.com>, ray.neppl@enron.com, 
	dave.neubauer@enron.com, eva.neufeld@enron.com, 
	sarah.novosel@enron.com, ranelle.paladino@enron.com, 
	zelda.paschal@enron.com, geneva.patterson@enron.com, 
	maria.pavlou@enron.com, keith.petersen@enron.com, 
	janet.place@enron.com, j..porter@enron.com, dan.pribble@enron.com, 
	tony.pryor@enron.com, colleen.raker@enron.com, randy.rice@enron.com, 
	kathy.ringblom@enron.com, james.saunders@enron.com, 
	lisa.sawyer@enron.com, donna.scott@enron.com, 
	louis.soldano@enron.com, lon.stanton@enron.com, 
	jim.talcott@enron.com, gina.taylor@enron.com, denis.tu@enron.com, 
	mike.van@enron.com, stephen.veatch@enron.com, 
	donald.vignaroli@enron.com, jody.warner@enron.com, 
	kimberly.watson@enron.com, kim.wilkie@enron.com, 
	rob.wilson@enron.com, michele.winckowski@enron.com
Subject: Summary of Commission Meeting
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X-From: Bagot, Nancy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=NBAGOT>
X-To: Butler, Janet </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jbutler>, Benner, Martha </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mbenner>, Blair, Lynn </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lblair>, Boatman, Jack </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jboatma>, Cordes, Bill </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bcordes>, Corman, Shelley </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Scorman>, Culwell, Christi </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cculwel>, Daniel, Shonnie </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sdaniel>, Darveaux, Mary </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mdarvea>, Dietz, Rick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rdietz>, Dornan, Dari </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ddornan>, Dushinske, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jdushin>, Farrell, Sharon </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sfarrel>, Fossum, Drew </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dfossum>, Fulton, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dfulton>, Goodpasture, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jgoodpa>, Harris, Steven </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sharris1>, Hartsoe, Joe </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jhartso>, Hass, Glen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ghass>, Hayes, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rhayes>, Hayslett, Rod </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rhaysle>, Heckerman, Bambi </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bhecker>, Hess, Theresa </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Thess>, Hill, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rhill>, Holmes, Bradley </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bholmes>, Holtzman, Staci </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sholtzm>, Horton, Stanley </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Notesaddr/cn=5d54fc1f-7c796798-86256a8c-4ddad1>, Janousek, Martha </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mjanous>, January, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sjanuary>, Kilmer III, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rkilmer>, King Jr., Frazier </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Fking>, Kirk, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Skirk>, Kissner, Tim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tkissne>, Lantefield, Laura </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Llantef>, Lichtenwalter, Blair </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Blichte>, Loeffler, Michael </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mloeffl>, Lowry, Phil </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Plowry2>, Mann, Ruth </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rmann>, Martens, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dmarten>, McCoppin, Dorothy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dmccopp>, McGowan, Mike W. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mmcgowa>, Miller, Mary Kay </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mkmiller>, Nacey, Sheila </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Snacey>, Nelson, Kimberly (ETS) </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Knelson3>, Neppl, Ray </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rneppl>, Neubauer, Dave </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dneubau>, Neufeld, Eva </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Eneufel>, Novosel, Sarah </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Snovose>, Paladino, Ranelle </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rpaladin>, Paschal, Zelda </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Zpascha>, Patterson, Geneva </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gpatter2>, Pavlou, Maria </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mpavlou>, Petersen, Keith </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kpeterse>, Place, Janet </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jplace>, Porter, Gregory J. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gporter>, Pribble, Dan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dpribbl>, Pryor, Tony </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tpryor>, Raker, Colleen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Craker>, Rice, Randy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rrice2>, Ringblom, Kathy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=KRINGBL>, Saunders, James </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jsaunde>, Sawyer, Lisa </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lsawyer>, Scott, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dscott1>, Soldano, Louis </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lsoldan>, Stanton, Lon </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lstanto>, Talcott, Jim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jtalcot>, Taylor, Gina </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gtaylor10>, Tu, Denis </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dtu>, Van Norden, Mike </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mvannor>, Veatch, Stephen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sveatch>, Vignaroli, Donald </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dvignar>, Warner, Jody </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jwarner>, Watson, Kimberly </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kwatson>, Wilkie, Kim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kwilkie>, Wilson, Rob </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rwilson>, Winckowski, Michele </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mwincko>
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At the October 24, 2001, FERC Sunshine meeting, the following items were di=
scussed:

Kern River Firm Customers' Rehearing Request Denied (C-6, C-8 on agenda):

Called by Linda Breathitt, these are two Kern River expansion applications =
[CA. Action Project, CP01-69; 2002 Expansion, CP01-106] that have received =
certificates.  The draft orders deny rehearing requests by Firm Customers w=
ho charge that additions will cause further  pro rata allocations at Wheele=
r Ridge.  The draft order states that the benefits of the project outweigh =
"any potential adverse impact to existing customers?" and that "the solutio=
n to the problem of pro rata curtailments at Wheeler Ridge lies not with in=
terstate pipelines, but with resolving the problems of take-away capacity o=
n SoCalGas?."  Hence, the orders reason that Kern River has satisfied its o=
bligations to its customers, and the current lack of intrastate capacity "c=
annot be laid at [Kern River's] door."

Breathitt is filing concurrences to these two orders to highlight the impor=
tant issue of FERC's response to intervener allegations of insufficient tak=
e-away capacity related to interstate expansions.  Though Breathitt doesn't=
 dissent from the rehearing denial, she wants to underscore the importance =
of the Commissions' acknowledgement of the role that possible degradation o=
f existing rights plays in the determination of the public need and necessi=
ty for pipeline expansions.  She also states that she is "uneasy" about FER=
C's "strident policies" in favor of adding pipeline facilities despite poss=
ible inefficiencies and constraints, and she reiterates that FERC's mandate=
 under the NGA goes beyond making sure pipeline gets into the ground.  She =
notes that the Commission will revisit the take-away capacity issue in anot=
her Kern River expansion application, CP01-422 [2003 Expansion Project].

Brownell Calls for Development of Regional State Relations Panels under Aus=
pice of "Electricity Market Design and Structure" NOPR, RM01-12 (E-5 on age=
nda)

Though  the issuance of a NOPR is not apparently imminent, under this discu=
ssion item Nora Brownell announced that she has sent a memo to the other th=
ree Commissioners recommending the development of some internal structure t=
o coordinate communications between FERC and state commissions.  The need f=
or such coordination emerged from obvious frustration expressed by state co=
mmissioners during RTO Week.  To get this process going, Commissioner Brown=
ell asked staff to pursue a structure, perhaps a type of regional panel, wi=
th the mission to strengthen federal/sate relationships.  Considering the m=
agnitude of RTO development, FERC likely will need to have dedicated staff =
work on this.  Chairman Wood requested that Dan Larcamp, Director of OMTR, =
bring a proposal to the Commission at the next meeting on how to implement =
a structure.  While all three other Commissioners supported Brownell's prop=
osal, Commissioner Massey noted that there's already been seven years of "p=
rocess" and input on RTO formation and that any new structure should be dev=
eloped "in a way that gets us to an endgame" concretely and clearly.

Western Infrastructure Reports Lay Baseline for FERC Adequacy Conference in=
 Seattle

Staff presented multiple detailed reports on data and background material g=
athered to lay the groundwork for discussions at next month's Western Infra=
structure Adequacy Conference in Seattle on November 2 [similar conferences=
 will be held regionally across the country].    The conference is a FERC "=
fact-finding mission" which will seek to answer three primary questions:
(1)=09=09Is the current energy infrastructure in the West adequate?
(2)=09What are the infrastructure needs for the region?
(3)=09What factors inhibit investment in the development of adequate energy=
 infrastructure?

While the presentations seem to focus primarily on electric transmission, t=
he conference will cover all energy delivery systems.  The overriding quest=
ion on all fronts is what needs to be done, and who needs to do it.  The po=
werpoint presentations made by Staff are already available on FERC's websit=
e at <http://www.ferc.gov/calendar/commissionmeetings/discussion_papers.htm=
>
=20
"RTO Week" Update=20

Staff updated the Commissioners and public on the week of RTO panels held a=
t FERC last week.  Staff is preparing and organizing a document outlining "=
what Staff heard," which will be posted on FERC's website this week.  The d=
ocument is intended to give focus to reply comments from stakeholders.  Sta=
ff also suggested that there may be a need to hold smaller, more focused St=
aff sessions to "dig deeper?."  According to Staff, while there seemed to b=
e some consensus at the 10.000 mile high level, more specific issues emerge=
d which may require further discussion.

Lengthy Updates and Discussion on Two RTO Mediations (Southeast, Northeast)=
, Midwest RTO Progress

In the Northeast and Southeast RTO mediation cases, Staff and the mediating=
 Judges briefed the Commissioners on where the ordered mediations left off,=
 what proposals and options are now on the table, and what next steps may b=
e necessary.  These mediation reports will be available online (by end of w=
eek).  What is not clear is when the Commission is going to vote on RTOs - =
there were no votes at the meeting, only discussion.

In the Midwest, both MISO and ARTO are ready for operations, and MISO and S=
PP are also prepared to merge.  While Commissioners discussed specifics of =
all the Midwest proposals, again no vote was taken or any indication given =
as to when a vote may occur.

ETS Draft Orders Issued:

?=09Northern Natural, RP00-223-005:  Northern's Limited Firm Transportation=
 ["LFT"] tariff sheets were approved, including two additional LFT sheets c=
oncerning the Carlton surcharge.
?=09Calypso, CP01-444-000:  Letters issued to Secretary of State, Secretary=
 of Defense requesting review of draft Presidential Permit for Calypso to c=
onstruct, own and operate pipeline facilities at the boundary of the U.S. E=
xclusive Economic Zone [EEZ] and the Bahamas EEZ.
