**Wednesday, Jan. 29**

**FERC Open Meeting -- SSG-WI Seams Resolution**

Chairman Wood opened the meeting. Items were struck from the agenda.
First on the agenda was A4 -- SSG-WI Seams Resolution (for RTO West, the
Cal ISO, and WestConnect).

Bud Krogh introduced members of the SSG-WI panel. He then made clear
that SSG-WI is not a decision-making body; it is a discussion forum. He
also explained that Western RTOs are still in the development phase,
unlike the East. One advantage to this, however, is an opportunity to
solve seams problems before they become more difficult in later stages.
Lastly, he said the SSG-WI workgroups and current their issues today can
change as needed.

Members of the SSG-WI panel each presented slides to the Commission.

\[The content of the panel members' presentation is not recorded.
Rather, the Commission's questions in response to the presentation are
recorded, along with panel members' answers to these questions.\]

During Elena Schmid's presentation, Chairman Pat Wood asked Ms. Schmid
about the process of creating a decision in the Cal ISO and SSG-WI. He
asked if decisions in these entities reflected a Cal ISO perspective or
a West-wide perspective. Ms. Schmid responded that it is degree of
experience that determines decisions and it is difficult to say how
diversities of perspectives will come about.

Chairman Wood asked if decisions came from employees of the three ISOs
or stakeholders. Ms. Schmid said decisions come from representatives of
the three as well as stakeholder input.

Chairman Wood asked who the representatives were. Mr. Krogh said they
were employees of the representative companies/filing utilities. Mr.
Krogh explained that in RTO West everyone is invited to participate in
stakeholder meetings. Frank Afranji added that workgroups are open too.

Chairman Wood said he wanted to make sure someone was there looking at
interests other than a company or an RTO. He said there needs to be
someone saying this is good for the West, not just "my company." Mr.
Afranji explained that principals of companies speak on behalf of RTO
West at SSG-WI and together look out for the West.

Commissioner Nora Brownell commented that at best she sees three
visions. There is not a strong group with *a* market design. She said
each of the three need to be reconciled in some way. Ms. Schmid
confirmed there are two different starting points. SSG-WI is taking
three designs and working in some way to come together; this is a
different starting point than starting as the West.

Chairman Wood again asked how RTO West and WestConnect decisions get
made presently, noting that Cal ISO already has a Board set up to make
such decisions. Mr. Krogh said the filing utilities of RTO West make
final determinations, although a large stakeholder group is involved
before this final determination. Charlie Reinhold said there is an
interim group that makes decisions at WestConnect.

Chairman Wood summarized his questioning by reiterating the need for
decisions made in the public interest of RTOs and for the West. He
wanted a region-wide perspective from decision makers. He said if such a
perspective was present in decisions, the Commission's job is simple. If
this perspective is not present, the Commission will have to be
intrusive.

Chairman Wood later asked if panel members had heard positive, negative,
or neutral feedback from non-jurisdictional entities. Mr. Reinhold said
non-jurisdictional entities were active in WestConnect. Mr. Krogh said
likewise, citing active participation from Bonneville and BC Hydro, the
City of Seattle, PUDs and other in the work groups Ms. Schmid added that
Cal ISO can not have a meeting without publics present.

Rich Bayless said the only concern in the Northwest from
non-jurisdictionals is getting dragged into a market design without much
thinking or fitting to the region's needs.

Commissioner Brownell asked if there was much involvement with state
Commissioners in CREPC. Mr. Krogh said state Commissioners are acting on
behalf of themselves, not in CREPC, in working out seams issues right
now. Shelton Cannon (FERC staff) agreed with Mr. Krogh. Mr. Cannon said
state Commissioners want to get involved, but there's not a sense of how
yet; they're keeping their powder dry. Mr. Cannon said we need to work
with the states to get a handshake with state Commissioners; we need to
aim, but we're not there yet.

Commissioner Brownell later asked if the SSG-WI seams process was
delaying RTO development. Mr. Bayless said he was not sure if SSG-WI was
causing *delaying* at the moment, although there might be concern down
the road.

Mr. Krogh said it was not the intent to delay. Commissioner Brownell,
however, asked if delay was happening in practice. Ms. Schmid said
SSG-WI was not delaying in the Cal ISO as far as she could tell. Mr.
Reinhold said that by dealing with seams issues now it can only be more
productive in the end. Mr. Afranji said without SSG-WI there would be an
incompatible market in the West; SSG-WI will reduce time spent.
Commissioner Brownell concluded by confirming there won't be an
explanation of delay in an RTO West filing because of work on SSG-WI (
for instance related to a hydro resource base).

Commissioner Massey asked Mr. Bayless what he meant by "dragged in" with
regard to market design. He asked if this meant "dragged in" to LMP. Mr.
Bayless said LMP was a broad term and there were other wrinkles.

During Steve Walton's discussion of major issues identified by
congestion management alignment workgroups, Chairman Wood asked if there
was a common way to make decisions on concrete details for locational
marginal pricing (LMP), congestion management, and other issues --
instead of three different decision making bodies. Could there be one
common way to make decisions for the West?

Chairman Wood also asked why WestConnect was basically the only ones
advocating a physical rights model. Why is the Commission not hearing it
in the rest of the country? Mr. Reinhold said he did not know why others
were different. Commissioner Massey later commented that WestConnect's
different model may be the toughest issue. Mr. Walton said that was one
major issue and another was the differences in wanting a full day-ahead
market.

Chairman Wood asked Mr. Walton if the congestion management alignment
workgroups could get back to SSG-WI on a regular basis. Mr. Walton said
they did.

Chairman Wood later asked if reliability planning could be coordinated
into the WECC. Dean Perry explained that SSG-WI was working close with
the WECC. Mr. Afranji said reliability planning in the future may be
coordinated more with the WECC.

Commission Wood commented that the SPRC shouldn't "bang their head too
long" because you won't come up with an answer. However, it would be
interesting to see the data collected about transactions and costs
between RTOs.

Later Commissioner Brownell commented that it would be nice to have cost
estimates done for the different systems (CSIC, etc.). She also said the
Commission knows the West is different, but having said this, she asked
if SSG-WI groups talked to the Northeast about what could be done
differently. She also commented that on things that have worked in the
past, there is no need to reinvent the wheel, no need to cost customers
money.

In conclusion, Chairman Wood reminded the SSG-WI panelists that when he
took his job as Chairman, the West had just blown up -- California and
the areas it affected. He said the Commission is committed to not ever
having this happen again, to having the SSG-WI calendar's dates met, to
watching over SSG-WI. The follow-thru needs to be equally robust as the
plan.

Commissioner Massey said he hoped there were not issues that just can't
be resolved. He said he'd like the Commission to have warnings of issues
that simply can't be resolved. The Commission can be notified and try to
resolve these issues.

Chairman Wood added that the Commission can be a screen and a vent for
SSG-WI to vent off steam. Mr. Krogh mentioned there had been
considerable venting to FERC staff. Chairman Wood said the venting had
made its way back to the Commission and this is healthy.

Last Chairman Wood suggested that maybe a FERC staffperson could see
where things can work for all three RTOs, but he said he hoped that role
could be homegrown as well. He said its time to think specifics, not
just in general. He said he hopes people will step out and think of the
best interest of all three RTOs. He said SSG-WI was off to a good start.