Mark, Thanks very much for your observations in response to my environmental  
memo. I think I understand some of your concerns about the role of the ISO 
in  general and, in particular, with regard to conservation programs. There 
are  several ways in which I think the NYISO is inextricably involved with 
energy  efficiency: 

The current competitive market the NYISO is overseeing is quite simply not  
working when it comes to demand or load responding to prices. Supply or  
generators are responding to price*imperfectly, but there is significant  
response. So we have "half a market." We should be seeking to put demand on 
a  par with supply*treating load equally with generation. We are moving in 
the  direction of facilitating that, but with basically all consumers on flat 
or  average rates, and with almost all LSEs (the regulated distribution 
companies)  able to pass along their energy costs, there is little basis for 
responding to  high prices even when we have the software mechanisms in place 
to do so.  Someone needs to find a way to have consumers confronting real 
prices*or at  least paying a risk premium for not having to do so. Someone 
needs to find a  way to have LSEs have a financial incentive to keep prices 
down*they don,t  now. One way LSEs could do so would be to encourage their 
(fixed price)  customers, through incentives, to reduce their use when prices 
are high.  Environmentally, there is a lot at stake in getting the market to 
work right,  and the ISO plays a major role in that, even when it is not its 
immediate  responsibility. 
The emergency measures the ISO is considering have very significant  
environmental impacts. Small diesel generators may be needed to avoid the  
significant social costs of outages. One environmental concern here is that  
such generators be restricted to emergency conditions, and not become a new  
breed of economic peak clippers. And also, it seems reasonable that the  
emergency program "clean up after itself" by having offsets or mitigation  
associated with it. Actual demand reductions are a preferable alternative  
since they do not have health and environmental impacts*and help lower 
market  prices at the same time. 

I don,t mean to suggest that the NYISO is responsible for all of the issues  
raised here*clearly the PSC, DEC, NYSERDA and others have very important 
roles.  I think the NYISO needs to work with these other agencies to get 
competition to  work more or less right, and pull down prices and protect the 
environment at the  same time. 

Sorry if I have fallen into the trap of repeating myself(at length. Thanks  
for your comments.

Larry