1. Comments on Regional State Committee Proposal
Mass Restructuring Roundtable
June 18, 2004
Peter Zschokke
National Grid
VP, State Regulatory Policy, US Transmission

2. Benefits from RSC Formation
Organization to promote policy prescriptions favored by all/majority of States
Avenue to create better understanding of regional needs by the States
RSC filing stakes out a broad area for review
Siting?

3. How can RSC be Heard? RTO-New England filing
Stakeholder Process before filing
Able to submit comments to an ISO/TO filing with deference provided by FERC to those comments
RSC right to have TOs submit alternative RSC proposal as part of TO regional cost allocation filing
Existing Tariffs and RTO Tariff
Able to file complaint that present tariff terms and rates are unjust and unreasonable (“206 rights”)
Deference provided by FERC

4. The Difficult Part: 205 Rights I
RSC filing requests use of RTO/TO 205 rights
Is it necessary?
See prior slide
Is it legal?
RSC not a public utility
RTO-NE Order rejects request for broader RSC 205 rights
SPP RTO Order suggests that an RSC might require an RTO to make certain filings, but Commissioner Kelleher’s concurring opinion questions whether FERC has this authority

5. The Difficult Part: 205 Rights II
What does it mean for RTO independence?
Would it allow RSC to file a change to rules that the RTO regards as necessary for markets?
NE RSC filing has a broad scope
Resource Adequacy, System Planning & “[changes] to implement any policies recommended by the NE RSC”
FERC denied request in original RTO approval

6. Conclusion Welcome the regional forum/dialogue
Encourage States to focus their efforts within the scope of the RSC
RSC has numerous avenues to be heard, with full understanding that FERC will give deference to their proposals
It is not necessary for RSC to use RTO/TO 205 rights to accomplish their objectives