1. FERC Policy Agenda Energy Bar Association Washington, D.C. November 4, 2004 Pat Wood III, Chairman Federal Energy Regulatory Commission

2. FERC Strategic Plan

3. Reliability initiatives FERC Reliability Division Operator Training Vegetation management Audits Reactive power Plan B?

4. Steady RTO/ISO development

5. 67% of the U.S. Economy is served by RTO/ISOs

6. Customer protection through vigilant market oversight OMOI RTO/ISO market power mitigation Electronic Quarterly Reports CUSTOMER PROTECTION Codes of conduct Market- based rate standards Transparent markets RTO/ISO monitoring Market behavior rules Standards of conduct FERC Audits Sec 203 review

8. Facilitating LNG development

9. Max LNG deliverability

10. Alaska Natural Gas Pipeline Act of 2004 Rulemaking coming for open seasons MOU of Coordination with Canada’s NEB

11. Other current initiatives RTO handbook Rate de-pancaking MBR reviews/rulemaking Order 2004 compliance OATT Audits Entergy issues Lockyer remand

12. Upcoming events Yesterday: CAISO conference on market power mitigation, resource adequacy 12/1 wind conference in Denver 12/3 Alaska pipeline hearing in Anchorage 12/7 MBR technical conference in DC 12/9 annual review of old hydro cases 1/6 Conn infrastructure conference #2 in Hartford