Ditto


   
	  From:  Christi L Nicolay                           04/11/2001 09:08 AM	
		


To:	Susan M Scott/HOU/ECT@ECT
cc:	 
Subject:	FERC order denying SPP/Entergy RTO -Summary


---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 04/11/2001 09:08 AM ---------------------------
   
	  From:  Christi L Nicolay                           03/29/2001 07:28 PM	
		


To:	Berney C Aucoin/HOU/ECT@ECT, Brad Morse/HOU/ECT@ECT, Edith Cross/HOU/ECT@ECT
cc:	 

Subject:	FERC order denying SPP/Entergy RTO -Summary





FERC Order Issued 3/28/01 Rejecting SPP/Entergy's RTO 

	The Commissioners were generally displeased by SPP and Entergy's lack of substantive work toward complying with the Commission's previous orders and failure to sufficiently discuss the feasibility of a broader RTO.  As Chair Herbert said:  SPP should have read the Commission's order in May and taken it more seriously.  (Issues for possible rehearing are ****).

?	The Commission declined to approve SPP's scope and configuration because the SPP members remain uncommitted to the RTO and have not made a decision to transfer operational control and the SPP/Entergy relationship remains somewhat undefined.  The Commission wants to see evidence of serious efforts to form RTOs that combine current RTO proposals and Entergy and SPP must file a report by May 25 addressing this scope issue.

	o	Bulk power sales and purchase figures indicate that natural markets extend beyond the SPP RTO borders.  There are significant sales and purchases between SPP and SERC (and Midwest companies to a lesser extent.)
	o	Expect the existing TOs to file Section 203 applications to transfer control of transmission to SPP.
	o	MOU must be clarified to demonstrate that the minimum requirements of an RTO, such as operational authority, ATC calculation and planning/expansion, will be met.

?	Approves Entergy's proposal for a Managing Member that controls all voting rights to the Transco and approves Entergy's Board approval process (states that Entergy would control no more than two of the selection committee's seven members). 

?	Allows Southwestern Public Service Company to satisfy its merger obligation by joining SPP instead of MISO.

?	The Commission did not address EPMI's motion to condition market based rate authority on RTO participation.******