Two weeks ago, EPSA had a FERC Outreach meeting with FERC's Office of Markets 
Rates and Tariffs staff to discuss issues of importance to EPSA members.  Jim 
Steffes attended the meeting on behalf of Enron.  During the meeting, one of 
the issues raised was the lack of comparable transmission service between 
network and point to point service.  Several staffers (including Don Gelinas) 
expressed interest in ways that FERC could address this comparability 
problem.   After the meeting, Julie Simon met with Andrea Wolfman (head of 
Market Oversight) and Andrea also expressed an interest in the issue.

Julie scheduled a meeting with Andrea and Ginny Strasser for today for EPSA 
members.  I attended the meeting, along with representatives from Williams, 
Duke, Dynegy, Mirant, and Reliant.   We told Andrea and Ginny that now that 
FERC has issued its order on California, it's time to focus on the rest of 
the country, and we have real problems, one being lack of comparable 
transmission service -- namely, that utilities have network service and we 
have point to point service.  

While a lot of the conversation was based on generators' problems in 
interconnecting to the grid (due to the problems with using point to point 
rather than network service), we also discussed that this is a problem for 
all transmission customers, not just generators.  Andrea asked if providing 
some kind of new "Network Plus" type of service would also require 
elimination of the native load exception.  We explained that while the native 
load exception must be eliminated,  there is still a need for a Network Plus 
type service because network is a superior service to point to point, and 
utilities will still have access to this superior service, even when the 
native load exception is eliminated.  The point of this meeting was not to 
ask FERC to deal with the native load issue in this meeting -- Julie felt 
that because Don Gelinas expressed interest in solving the network problem, 
that we should respond to his interest, rather than trying to get our entire 
agenda passed all at once.

Andrea seemed receptive to our ideas and suggested that we need to educate 
FERC staff.  She also noted that if the Commissioners make this a priority of 
theirs, that FERC staff will be much more willing to learn the issue and find 
a way to solve the problem.  

EPSA is going to work on a position paper on this new type of service.  At 
the Function 8 (seams issues) Technical Conference yesterday, both Pat Wood 
and Nora Brownell were interested in the comparability issue and ways to 
address it.   So, we need to get the Commissioners on board with the idea 
(Massey is already there, which he indicated in his concurrence in the 
Entergy Source and Sink order) and begin to educate FERC staff.  

Please let me know if you have any comments or ideas.  I will circulate the 
EPSA draft position paper once I receive it.

Sarah