FYI - Free information from Fla.

 -----Original Message-----
From: 	Bill Bryant <BBryant@katzlaw.com>@ENRON  
Sent:	Thursday, December 27, 2001 11:04 AM
To:	Steve Montavano (E-mail); Steve Montavano (E-mail 2)
Subject:	Florida RTO

Bernie,

Steve,

	In the FPSC's ongoing investigation into whether it is prudent for
Florida IOUs to form a RTO and into the costs associated with a RTO, it
issued an order last week finding that the IOUs' proactive formation of
GridFlorida in response to Order No. 2000 is prudent.  It said, however,
that it did not find certain aspects of the GridFlorida proposal to be in
the best interests of Florida's retail ratepayers.

Of particular concern to the FPSC is the transfer of ownership of
transmission assets that the current GridFlorida proposal contemplates.  The
FPSC said it believes that "the benefits associated with the transco
structure of GridFlorida can be achieved under an ISO structure, in which
participants would continue to own their transmission assets while the RTO
would have operational control over those assets. ... The record indicates
that the potential for customer benefits is just as likely under an ISO
structure as the transco structure proposed for GridFlorida. ... While we
appreciate the merits of transferring ownership of transmission assets to
GridFlorida, we believe that a more cautious, transitional approach is
prudent for Peninsular Florida at this time."

The FPSC is satisfied with either a for-profit or not-for-profit ISO.

The FPSC asked that the IOUs modify the GridFlorida proposal consistent with
the terms of the FPSC order and file the modified proposal within 90 days of
the December 20, 2001 order.

Let me know if you need further information.  We can scan the order into an
Acrobat file and e-mail it to you, if you like.

Bill