Transmission Tariff and Market Design Rulemaking

Alice Fernandez, Mark Alice Fernandez, Mark Hegerle, Kevin Kelly, Dave Hegerle, Kevin Kelly, Dave

Mead, Mead,

Ed Murrell, Joe Power, Ed Murrell, Joe Power,

and Dave Withnelland Dave Withnell

Reasons for Standard Market Design Rulemaking

Objective is a seamless national Objective is a seamless national electricity marketplaceelectricity marketplace

Need to look at power markets Need to look at power markets together with transmission together with transmission marketsmarkets

Greater standardization is needed Greater standardization is needed

Plan for NOPR

Build off of RTO Week discussions and Build off of RTO Week discussions and work of the Electronic Scheduling work of the Electronic Scheduling CollaborativeCollaborative

Make key policy decisions on the Make key policy decisions on the elements of standard market designelements of standard market design

Use industry collaborative process to Use industry collaborative process to develop detailed standardsdevelop detailed standards

Elements of the NOPR

Changes required in the Changes required in the pro forma pro forma tarifftariff

Energy marketsEnergy markets Market for transmission servicesMarket for transmission services Operating reservesOperating reserves Ensuring adequate generation capacityEnsuring adequate generation capacity Market MonitoringMarket Monitoring Market MitigationMarket Mitigation

Timeline for the Rule

Issue staff paper – Dec 2001Issue staff paper – Dec 2001

Industry workshops – Jan/Feb 2002Industry workshops – Jan/Feb 2002

Issue NOPR -- March 2002Issue NOPR -- March 2002

Industry workshops– April/May 2002Industry workshops– April/May 2002

Comments – May 2002Comments – May 2002

Rule – July 2002Rule – July 2002

Pre-NOPR Outreach

Multi-day workshop in mid-January Multi-day workshop in mid-January

Conference with state Conference with state commissioners in early Februarycommissioners in early February

Individual meetings with industry Individual meetings with industry segments segments

Conclusion

Getting the right market design is Getting the right market design is criticalcritical

Need input from all stakeholder Need input from all stakeholder interests to do that interests to do that