MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Jim Steffes, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketers Working Group Chair
            Julie Simon, Vice President of Policy
            Erin Perrigo, Manager of Policy

DATE: June 29, 2001

RE: Draft Letter to FERC Commissioners Regarding Alliance
      RTO Stakeholder Process and Interconnection Agreement

Attached is a draft letter addressed to the FERC Commissioners concerning the 
collaborative stakeholder process of the Alliance RTO (ARTO).  As you are 
aware, EPSA sent a letter in April to the ARTO transmission owners outlining 
our concerns with the development of the ARTO stakeholder process.  The ARTO 
subsequently made its compliance filing to FERC in May describing the 
progress of the collaborative stakeholder process.  Many parties filed 
comments outlining the flawed progress and their inability to provide 
meaningful stakeholder input to the ARTO.

Most recently, the ARTO removed all system upgrade transmission crediting 
provisions from the latest draft Interconnection Agreement and 
Interconnection Procedures covered during the June 7-8, 2001 collaborative 
meeting.  We are concerned that such an action will have grave effects on 
generation and is clearly inconsistent with FERC precedent.  We are also 
concerned with the ARTO's commitment to uphold its interests in the Inter-RTO 
Cooperation Agreement ("Cooperation Agreement") to form a common pro forma 
Generator Interconnection Agreement with the MISO.

We intend to send the letter to the FERC Commissioners as well as all parties 
in the active docket.  The letter will be signed by EPSA, but if individual 
generators would also like to sign on, please let us know.  If you have any 
comments, please contact Erin Perrigo at 202-628-8200 or at eperrigo@epsa.org 
by noon EST on Tuesday, July 3rd.

Attachment

 - ARTO IA letter.doc