Hello, Everyone -

This Notice confirms our meeting for this coming Friday, March 23, 2001,
from 8:30 a.m. to 11:00 a.m. at the Sheraton Portland Airport Hotel.
Because there are fewer items on the agenda, this RRG meeting should be
shorter than usual, and we hope to wrap up by 11:00 a.m.

The purpose of the meeting is primarily to discuss with the RRG a phased
approach to implementing congestion management.  The filing utilities are
very aware of the concerns many parties have expressed about process
overload, and the burden this imposes on you. Consequently, the filing
utilities are considering a more focused process that will call for
prioritizing the work streams over the next few weeks.  Part of this more
focused process is a proposal for a potential phasing of congestion
management implementation. A background paper for your review before the
meeting is attached.

The working agenda is:

1. Market Monitoring:  Recommendation Regarding Stage 1 Decision

2. Clarification of RTO West Treatment of Losses

3. Clarification of Stage 1 Decision on Interconnection Standards

4.. Potential Phasing of Congestion Management Implementation

5. Report on TransConnect

6. Benefit-Cost Study

A word about the new benefit-cost study.  It is my view that before we can
profitably engage in a new study that will be useful to regional parties a
number of issues need to be resolved first.  For example, it will be
important to know and not just assume what the scope and regional
configuration of RTO West is likely to be.  We are all waiting for FERC's
response to the October 23 filing and its declaratory order regarding the
RTO West scope and regional configuration as proposed in the October 23
application.  The reason for my uncertainty and the need for clarification
on scope and regional configuration is FERC's press release of March 14 in
which it "encouraged the formation of a regional transmission organization
(RTO) for the western markets."  What does this mean for RTO West? In
addition to understanding the scope of RTO West, it will also be important
to know and not just assume what the congestion and pricing models will be
for RTO West.  Determining these models will probably take a few more weeks.
As we discussed in earlier RRG meetings, a benefit-cost analysis may become
important parts of filings with the various state commissions.
Understanding what the state commissions are looking for is also important.
Because of  the need for this information, and the more focused process we
are considering, I have recommended to the filing utilities that the
benefit-cost work be deferred until these issues are resolved.  I would
appreciate your views on this subject at the RRG meeting as well.

I look forward to seeing you this Friday, March 23.

- Bud



 - Congestion Model Disc 3-20-01.doc