It looks like Brownell is staying the course on RTOs.  See the highlighted part of the case below.  This case is about a customer wanting the right to buy ancillaries at market based rates.  The Commission denies the request but Brownell uses the opportunity to make the point that RTOs will provide customers more service options and choices that are not available today, services that customers are asking for.

Sarah


United States of America                  
FEDERAL ENERGY REGULATORY COMMISSION 


     Carolina Power & Light Company               Docket Nos. ER01-
                                    	              2301-000
                        			                           and ER01-2301-001

                         (Issued November 1, 2001)          

     BROWNELL, Commissioner, concurring:

          In this order we accept Carolina Power & Light's proposal to
     makes sales of certain ancillary services at market-based rates. 
     We find that the proposal is consistent with certain conditions
     as set forth in Order No. 888 and our policy in Avista
     Corporation, 87 FERC   61,223 (1999) (Avista). 

          In Order No. 888, and subsequent cases, the Commission
     required transmission providers to offer certain ancillary
     services at cost-based rates as part of their open-access
     transmission commitment but also contemplated that third-party
     suppliers (that is, parties other than the transmission provider
     in a particular transaction) would also provide ancillary
     services.  The Commission left open the possibility that
     ancillary services could be provided at other than cost-based
     rates and stated it would entertain requests for market-based
     rates by third-parties if supported by analyses that demonstrated
     the seller lacked market-power.  In Avista the Commission set
     forth several criteria that allowed a third party to make sales
     at market-based rates, without making such a demonstration.  The
     Commission concluded that the protection of the cost-based
     backstop under the open-access tariff in conjunction with the
     criteria set forth in Avista provided an appropriate and
     effective safeguard against potential anti-competitive behavior.

          North Carolina Electric Membership Corporation (NCEMC), in
     the case before us, claims that for the portion of its load on
     CP&L's system, CP&L is the only game in town because no other
     entity offers such services in the control area.  NCEMC believes
     that the rates under CP&L's market-based rate tariff may be lower
     than the open-access transmission rates and may offer a greater
     range of products and thus that it should have the opportunity to
     purchase ancillary services under CP&L's market-based rate
     tariff. 

          NCEMC's request underscores the value that an RTO can bring
     to the region.  First, access to information, standardized rules
     and procedures (including generation interconnection) and
     comparable access to the transmission grid - - all things that an
     RTO can bring or enhance - - should incent additional suppliers
     of energy and ancillary services in CP&L's control area.  Given
     the opportunity, a third party supplier will have 

                                     2

     an incentive to compete business away from the transmission
     provider, if it is profitable.  Second, control of the
     transmission system by an independent operator should mitigate,
     if not eliminate, concerns of anti-competitive behavior and








     affiliate abuse and thus produce greater options for customers -
     - ones that NCEMC appears to be seeking now.  

          CP&L did not request to sell ancillary services at market-
     based rates to customers on its own system and we do not direct
     CP&L to do so.  I believe that the order is consistent with prior
     orders and Commission policy.  I also believe, however, that
     today's order has not satisfied NCEMC's needs and has not
     advanced customer choice or flexibility, both of which I believe
     are necessary for the wholesale competitive markets to thrive and
     can be advanced through RTO formation.
                                        
           
                                                                       
                                                                       
                                                   
                                        Nora Mead Brownell
                                        Commissioner