In the public meeting today, the Commissioners approved RTO status for Grid 
South, RT01-74 with certain conditions imposed. The conditions are that Grid 
South continue to expand with additional members; Santee Cooper must be 
included in the Grid South RTO and denies Grid South,s proposed veto rights 
(must modify to ensure selection of board members represents more 
participation by stakeholders) ) must maintain its independence; and orders 
Grid South to resurrect original list of board candidates for another review.

FERC rejected Southern Company,s application, RT01-77, for RTO status finding 
that the conditions of Order No. 2000 have not been met. The application is 
rejected as being too inclusive. Chair Hebert stated that single company RTO 
will not be accepted and are not the future. FERC wants to see good regional 
member participation.

Commissioner Massey concurs on Grid South order; dissents in part in Southern 
Company order, (expressed dismay over pricing issues finding that since the 
application has been rejected, there is no reason to address pricing issues 
in rejection).

The Commission discussed the order, EL 01-47, for relief to the California 
and western state markets. The order announces certain action to be taken to 
increase supply and reduce demand. As stated, the actions are:  1) require 
California ISO and transmission owners to file grid enhancements that can be 
achieved in short-term; 2) extends and broadens temporary  waivers of 
operating and efficiency standards and fuel use requirements for QFs; 3) 
waives prior notice requirements and grants market-based rate authority for 
wholesale power sales; 4) authorizes retail/wholesale customers to reduce 
consumption to resell their load reduction at wholesale at market-based 
rates; 5) announces staff conference this Spring to discuss hydro-licensees, 
resource agencies the possibility of increased generation consistent with 
environmental protection. Addtionally, the order seeks comments by March 30, 
1) rate incentives for electric transmission and gas facilities that provide 
additional capacity in the short term; 2) use of interconnect authority 
(Section 210.d of FPA) to help alleviate impediments to additional supply; 3) 
waiving natural gas blanket certificate regulations to increase the dollar 
limits for facilities under automatic authorization and prior notice 
authorization; 4) offering blanket certificates for construction for 
acquisition of portable compressor stations to enhance pipeline capacity to 
California; 5) allowing for greater flexibility that license hydroelectric 
projects to increase generation while protecting environmental resources. 

FERC Commissioners intend to meet with Western state commissioners and other 
regulators to discuss price volatility and other FERC related issues that 
have recently been identified by the western governors. This will be a 
one-day conference.