FERC held its meeting today.  Big things happened.

Northeast

FERC approves PJM conditionally as the RTO "platform" to be used to form one 
RTO in the northeast.  FERC rejects the New York and New England RTO 
proposals and directs the three ISOs and all interested parties to 
participate in a mediation led by a FERC Settlement Judge with assistance 
from outside consultants.  The purpose of the mediation proceeding is to 
facilitate the formation of a single RTO in the Northeast.  The mediation 
must begin within one week from today and must conclude 45 days thereafter.  
The Judge must then submit a report to the Commission 10 days thereafter, 
which will include an outline of the proposal to create a single northeast 
RTO, milestones for the completion of intermediate steps, and a deadline for 
submitting a joint proposal.

While the Commission has not formally extended the RTO implementation date 
(currently December 15, 2001), Chairman Hebert made comments a couple of 
weeks ago and again today that perhaps the December 15, 2001 may have to slip 
some.  We will continue to monitor this issue.

Donna Fulton is sending separately a write up of similar action the 
Commission took with regard to the Southeast RTO effort.  

Please call me if you have any questions or comments.

Sarah