It is important to point out that under the Bingaman reliability language, FERC has total discretion as to whether to adopt a NERC standard.  Charles does make a good point about the deference language.  As written, FERC has discretion to defer to NERC or an RTO to monitor and enforce compliance.  At a minimum, that language should be expanded to include another entity like an EISB.  Similarly, the language should probably be tweaked to allow FERC to adopt standards of an organization other than NERC.

 -----Original Message-----
From: 	Yeung, Charles  
Sent:	Friday, October 12, 2001 9:14 AM
To:	Shelk, John; Shapiro, Richard; Robertson, Linda; Steffes, James D.; Bestard, Jose; Walton, Steve; Perrino, Dave; Novosel, Sarah; Shortridge, Pat; Nicolay, Christi L.
Subject:	RE: Bingaman reliability draft language

I understand that the NERC needs to be recognized for political reasons - but this shuts out the possibility of a EISB.  Since it recognizes RTOs, it should alos leave open the possibility of yet another entity to perform the reliability standards setting function,  at least allow for the RTOs to work through a central standards setting organization other than NERC.

 -----Original Message-----
From: 	Shelk, John  
Sent:	Thursday, October 11, 2001 10:31 AM
To:	Shapiro, Richard; Robertson, Linda; Steffes, James D.; Yeung, Charles; Bestard, Jose; Walton, Steve; Perrino, Dave; Novosel, Sarah; Shortridge, Pat; Nicolay, Christi L.
Subject:	FW: Bingaman reliability draft language


Per Jim's request, below is the text of the simple Bingaman reliability language for everyone's review.

 -----Original Message-----
From: 	Nersesian, Carin  
Sent:	Thursday, October 11, 2001 11:11 AM
To:	Shelk, John
Subject:	Bingaman reliability draft language

SEC. 410.   ELECTRIC RELIABILITY STANDARDS.
Part II of the Federal Power Act is further amended by adding at the end the following:
ASEC. 215. ELECTRIC RELIABILITY STANDARDS.
A(a) DUTY OF THE COMMISSION.B The Commission shall establish and enforce a system of mandatory electric reliability standards to ensure the reliable operation of the interstate transmission system, which shall be applicable toB 
A(1) any entity that sells, purchases, or transmits, electric energy using the interstate transmission system, and
A(2) any entity that owns, operates, or maintains facilities that are a part of the interstate transmission system.
A(b) USE OF NORTH AMERICAN ELECTRIC RELIABILITY COUNCIL STANDARDS.B   In carrying out its responsibilities under subsection (a), the Commission may adopt and enforce, in whole or in part, a standard proposed or adopted by the North American Electric Reliability Council.
A(c) MONITORING COMPLIANCE.B In carrying out its responsibilities under subsection (a), the Commission may defer to the North American Electric Reliability Council or a regional transmission organization to ensure the reliable operation of the interstate transmission system and to monitor and enforce compliance of the members of the North American Electric Reliability Council or a regional transmission organization with electric reliability standards of the Commission.
A(c) DEFINITIONS .B   For purposes of this section:
A(1) The term >interstate transmission system= means facilities used for the transmission of electric energy in interstate commerce.
A(2) The term >reliability= means the ability of the interstate transmission system to supply the aggregate electric demand and energy requirements of electricity consumers at all times and the ability of the system to withstand sudden disturbances.@.