On May 14, NSTAR filed a complaint against Sithe and PG&E Trading, arguing 
that both have generation market power in the Northeastern Massachusetts Area 
(NEMA) during times of transmission constraints and should not be permitted 
to sell power at market based rates in that region during times of 
constraint.  NSTAR contends that when transmission congestion occurs, the 
market in NEMA cannot be considered workably competitive since Sithe and PG&E 
own almost 90 percent (2,725 MW of the total 3,036 MW) of existing generation 
in NEMA.  NSTAR alleges that, had competition existed from September 1, 1999 
) May 31, 2000, the cost of congestion relief in NEMA would have been around 
$2.3 million.  Due to Sithe,s and PGE,s market power, however, the cost was 
actually $56 million.

Due to this market power, NSTAR asks the Commission to:  1)  revoke Sithe,s 
and PG&E,s market-based pricing authority during periods of transmission 
constraint in NEMA; 2)  require Sithe and PG&E to divest some of their 
generation if they wish to have market-based rates during these times of 
constraint; 3) develop a formula based on unit operation characteristics and 
fuel costs in order to calculate the marginal cost of each unit for Sithe and 
PG&E; during times of constraint, these generators would be paid the higher 
of the energy market clearing price (ECP) or their marginal cost; 4)  require 
NE ISO to make all bid data, including unit operating characteristics, 
available 90 days after the fact and allow for public disclosure of data, 
mitigation processes, and implementation of mitigation agreements; and 5) 
order Sithe and PG&E to refund all money collected by them in excess of the 
applicable NEPOOL ECP from the time when congestion became a problem in NEMA.

The Commission is requesting comments and protests to be filed by June 4.  We 
will intervene in this proceeding in order to monitor it, but please let me 
know if you have any concerns or thoughts or would like us to take an active 
role in this proceeding.

Also, PJM (including PJM West), New England and New York RTO proposals are on 
FERC's agenda for Wednesday.  Interestingly, FERC's agenda shows the New 
England and New York RTO cases as being considered in one order.  This may 
just be a typo on FERC's part, but we will research it.

We'll keep you posted.

Sarah