On March 16, Martin Lin will be participating in a panel discussion with Dick 
O'Neill of FERC, a rep. of Morgan Stanley, and Ed Cazalet of APX on "Market 
Turmoil, Trading and Risk Management" (Harvard Electricity Group).  At the 
present time, except in several limited regions, marketers do not have the 
ability to hedge transmission risk by reselling it above cost.  Last year, we 
approached Dick O'Neill's staff about the possibility of lifting the cap on 
resales of transmission, but they were not inclined to proceed absent the use 
of certain restrictions.  There have been several recent developments in 
power and gas, as discussed in the attached memo.  It would be helpful for 
Martin to discuss these recent orders as necessary in order to attempt to 
gain support from Dick O'Neill for the idea of lifting the cap for power.  
After Martin's discussion, we should consider reapproaching FERC to seek 
approval.