Transmission Tariff and Market Design Rulemaking Alice Fernandez, Mark Hegerle, Kevin Kelly, Dave Mead, Ed Murrell, Joe Power, and Dave Withnell

Reasons for Standard Market Design Rulemaking Objective is a seamless national electricity marketplace Objective is a seamless national electricity marketplace Need to look at power markets together with transmission markets Need to look at power markets together with transmission markets Greater standardization is needed Greater standardization is needed

Plan for NOPR Build off of RTO Week discussions and work of the Electronic Scheduling Collaborative Build off of RTO Week discussions and work of the Electronic Scheduling Collaborative Make key policy decisions on the elements of standard market design Make key policy decisions on the elements of standard market design Use industry collaborative process to develop detailed standards Use industry collaborative process to develop detailed standards

Elements of the NOPR Changes required in the pro forma tariff Changes required in the pro forma tariff Energy markets Energy markets Market for transmission services Market for transmission services Operating reserves Operating reserves Ensuring adequate generation capacity Ensuring adequate generation capacity Market Monitoring Market Monitoring Market Mitigation Market Mitigation

Timeline for the Rule Issue staff paper – Dec 2001 Issue staff paper – Dec 2001 Industry workshops – Jan/Feb 2002 Industry workshops – Jan/Feb 2002 Issue NOPR -- March 2002 Issue NOPR -- March 2002 Industry workshops– April/May 2002 Industry workshops– April/May 2002 Comments – May 2002 Comments – May 2002 Rule – July 2002 Rule – July 2002

Pre-NOPR Outreach Multi-day workshop in mid-January Multi-day workshop in mid-January Conference with state commissioners in early February Conference with state commissioners in early February Individual meetings with industry segments Individual meetings with industry segments

Conclusion Getting the right market design is critical Getting the right market design is critical Need input from all stakeholder interests to do that Need input from all stakeholder interests to do that