On July 26, 2001, FERC issued an order conditionally approving the proposed tariff for the Neptune Project, which will consist of several thousand miles of undersea high-voltage direct current transmission systems connecting Main, New Brunswick and Nova Scotia to the capacity-constrained markets of Maine, New York City, Long Island and Connecticut.  As a merchant transmission facility, Neptune proposed to assume all the risk of the the project.  It proposed rates effectively capped by market forces.

	Conditions on the Commission's approval:  

		- Neptune must join an RTO adjacent to or containing the geographic area of its proposed faciliteis and must place operational control of its facilities under the RTO.

		- Service must be provided pursuant to the Order No 888 pro forma tariff (Commission denied Neptune's request for a waiver).

		- Neptune cannot negotiate bilateral transactions prior to conducting its open season; it must make all capacity available solely through the open season process.

If you would like any further information, please let me know.

Susan Scott Lindberg
713.853.0596