CC list suppressed...

The following letter shows the ongoing battle regarding
what/whether there should be a fourth large RTO in the
West?  I've provided it as text below and as an attachment
in Rich Text if you wish to have an easier read by opening
it up.  The document has been scanned for viruses.  Dsg



October 10, 2001





The Honorable Pat Wood, III, Chairman
The Honorable William Massey, Commissioner
The Honorable Linda Breathitt, Commissioner
The Honorable Nora Brownell, Commissioner
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C. 20426

Dear Commissioners:

        We are writing to express our strong reservations
regarding the Federal Energy Regulatory Commission's
(FERC) movement toward mandating four (West, Midwest,
Northeast, Southeast) regional transmission organizations
(RTOs).

        While we acknowledge that RTOs could, in theory,
lead to a more efficient and well-functioning wholesale
electricity market, we are concerned that FERC is
promoting RTOs in the belief that they are inherently
beneficial, with little regard for whether the operational
details associated with the various RTOs will actually
lead to lower costs or increased efficiency and
reliability when applied in the real world.

        We don't believe RTOs are inherently good or bad.
Whether the benefits of an RTO outweigh the costs depends
on the details of a given proposal and the attributes of a
given market.  We are concerned that full consideration of
those issues will be sacrificed under an artificial FERC
deadline and a national perspective that disregards the
specific features of the Pacific Northwest grid.

        As Members of Congress from the Northwest, we are
particularly interested in, and have been following
closely, the development of RTO West.  We commend the
inclusive stakeholder process that has brought together
the RTO West filing utilities, urban and rural public
utilities, industrial customers, Indian tribes, and other
interested consumers to debate the details of RTO West.

        There is still a vigorous debate among the
stakeholders in our region on issues such as pricing,
congestion management, and how much authority RTO West
should have to mandate construction, demand-side
management or other measures to deal with reliability and
congestion problems.  While we each have our own opinions
about what the result of this debate should be, we are
united in the belief that it would be extremely
unfortunate if the consensus-building

Letter to FERC regarding RTOs
October 10, 2001

process in our region was preempted by FERC action that
would mandate a West-wide RTO or require that RTO West and
WestConnect (formerly Desert Star) merge into a single
organization.  We would also oppose the FERC setting
standardized national rules for RTOs on issues like
pricing and congestion management.  The Northwest needs
the flexibility to do what is best for our region given
the unique characteristics of our grid.  We still expect
the ongoing negotiations to resolve seams issues and
similar operational concerns between the three RTOs under
consideration in the Western United States will meet the
requirements for an efficient wholesale market to
function.

        Finally, we would respectfully request that the
FERC mandate independent, cost-benefit analyses for each
RTO.  It is important for stakeholders and consumers to
see a bottom line evaluation of the cost and benefits to
end-use consumers in each affected state.  This is
especially true for ratepayers in the Northwest who are
being subjected to rate increases of 20-40 percent or more
and are dubious of any overhaul of how electricity is
delivered if it could mean even further price hikes.

        Vigorous, independent cost-benefit studies must be
done for all RTOs if they are to have any credibility.
While the theoretical benefits of an RTO (like increased
reliability and efficiency) may ultimately exist, those
benefits may be outweighed by increased costs to consumers
for generation or transmission service.  This is
particularly important for our region, which, due to the
presence of the Bonneville Power Administration, has
generally had a reliable, open-access transmission system
even in the absence of an RTO.  We are pleased that RTO
West has commissioned an independent cost-benefit
analysis, but it is still unclear whether the scope of the
report will be satisfactory.

        Thank you, in advance, for your careful
consideration of our concerns.  We would appreciate an
opportunity to meet with you to discuss these issues
further and look forward to working with you to ensure a
well-functioning wholesale market that doesn't adversely
impact consumers.

                                        Sincerely,



        __________________
__________________
        PETER DeFAZIO
PATTY MURRAY
        Member of Congress
United States Senator



        __________________
__________________
        NORM DICKS
MAX BAUCUS
        Member of Congress
United States Senator
Letter to FERC regarding RTOs
October 10, 2001



        __________________
__________________
        JIM McDERMOTT
LARRY CRAIG
        Member of Congress
United States Senator



        __________________
__________________
        JENNIFER DUNN
RON WYDEN
        Member of Congress
United States Senator



        ______________________
__________________
        GEORGE NETHERCUTT
MIKE CRAPO
        Member of Congress
United States Senator



        ___________________
__________________
        DOC HASTINGS
MARIA CANTWELL
        Member of Congress
Member of Congress



        ____________________
__________________
        EARL BLUMENAUER                         DARLENE
HOOLEY
        Member of Congress
Member of Congress



        __________________
_________________
        JAY INSLEE
ADAM SMITH
        Member of Congress
Member of Congress



        __________________
__________________
        BRIAN BAIRD
GREG WALDEN
        Member of Congress
Member of Congress


Letter to FERC regarding RTOs
October 10, 2001



        __________________
___________________
        MICHAEL SIMPSON                         C.L.
"BUTCH" OTTER
        Member of Congress
Member of Congress



        __________________
___________________
        RICK LARSEN
CONRAD BURNS
        Member of Congress
United States Senator



        __________________
        DAVID WU
        Member of Congress