thanks.

 -----Original Message-----
From: 	Perrino, Dave  
Sent:	Thursday, October 11, 2001 9:50 AM
To:	Steffes, James D.
Subject:	RE: MTG with ELCON and PJM

Jim,

If I heard you right yesterday, you said that Phil Harris was exasperated and couldn't understand why NYISO was so resistant to joining a Northeast RTO.  

From my NY expereince I can tell you a perfect example of the NY attitude toward the merger, if you recall Charleton Heston at an NRA meeting last year, expressed the sentiment, "not unitl you pry it from my cold dead hand!", I am sure this is the same feeling the folks in NY have toward their joining PJM... For years, we in NY felt that we where far ahead of PJM as far as technology and operating policies.  Now that PJM has a customer centric management, much improved technology and is the darling of FERC, I'm sure the NYISO staff is struggling with understanding why.  If things were reversed, PJM encouraged to join the NYISO, I'm sure NY would be very pleased...and maybe Phil Harris would be happy (but somehow I doubt that).  Recently I spoke to a friend of mine from NY who said they had a staff meeting where Bill Muesler told the staff, that the only reason that the market participants like the PJM model, is because they can game it and make money, while stating that NY will not give up the effort (to remain independent).  I think this illustrates the general attitude of the NY management and the struggle PJM is in for, unless of course FERC Orders the merger, which I think is the only way this can be accomplished.

I'm sure you most likely know most of this, but just thought I'd pass this along.

Kind Regards,

Dave

 -----Original Message-----
From: 	Steffes, James D.  
Sent:	Thursday, October 11, 2001 5:43 AM
To:	Yeung, Charles; Bestard, Jose; Walton, Steve; Perrino, Dave; Shelk, John; Novosel, Sarah; Rodriquez, Andy; Shortridge, Pat; Nicolay, Christi L.
Cc:	Robertson, Linda; Shapiro, Richard
Subject:	MTG with ELCON and PJM

Today after the Hearing I attended lunch with John Anderson and Phil Harris.  One of the primary points of discussion involved what to do to respond to the NERC legislative efforts?

Basically we agreed that a straightforward delegation of authority over reliability to FERC made sense for all of the groups.  Agreeing to that, the idea is to review the Bingaman language and see if our groups could agree to that language.   

I think that internally Enron is already there???  John Shelk, if you could pls send out the language to everyone on this e-mail to get agreement that would be very helpful.

I'll let you know how we next proceed.  If anyone has any problems, please let me know.  

Thanks.