1. New England States Committee on Electricity (NESCOE)
David L. O’Connor, Commissioner
Massachusetts Division of Energy Resources
Electric Restructuring Roundtable
June 18, 2004
T://tm-pubinfo/presnt-tm-dt/reliability/NESCOE doc

2. Origins of NESCOE
FERC White Paper on SMD invites formation of Regional State Committees.
Designed to enable States to participate in development of regional electricity policies.
The New England Governors directed energy and environmental regulators to file plan with FERC.

3. FERC’s Guidance
“…primary responsibility for determining regional proposals and the transition process” in
funding for transmission enhancements
the structure of regional access charges, and
allocation of Financial Transmission Rights (“FTR”)
“…the RSC should also determine the approach for resource adequacy across the region.”
Source: FERC’s Order approving the Southwest Power Pool RTO (Docket Nos. RTO and ER ).

4. NESCOE’s Policy Concerns
Transmission system planning and expansion
Resource adequacy
Should the Committee play a role in the siting
of inter-state transmission lines?
The RSC’s scope can be expanded or contracted but only by unanimous agreement of the states

5. Governance
Governors appoint one or more members to represent their state but each state has a single vote
The goal is to achieve consensus of all states on any Committee determination
If no consensus, “Majority Determinations” must succeed on each of two votes:
a “one state, one vote” basis, and
a weighted vote for each state based on electricity consumption
Changes in voting structure allowed only with unanimous consent of the states

6. Procedural Rights
Committee receives notice from RTO-NE or TO’s of any proposed additions or changes to market rules or tariffs.
Committee is given reasonable opportunity to recommend its own additions or changes.
A Committee determination is to be filed with FERC by RTO-NE or TOs, with explanation of why it was or was not followed.
Committee determinations are to be filed with FERC by RTO-NE or TOs pursuant to their rights in Section 205 of the FPA.
FERC asked to give “deference” to Committee determinations.

7. Organization and Funding
A non-profit corporation with full-time staff
Governors’ appointees serve as Board of Directors
Funded by a regional tariff collected by RTO-NE from transmission providers
Transmission providers recover costs from all New England retail electricity customers