FERC’s implementation of the Energy Policy Act of 2005, along with other major initiatives, made 2007 an active year for TAPS. TAPS 2007 efforts included the following significant activities:

Legislation

TAPS’ legislative agenda and priorities for 2007 included maintaining visibility and support in Congress and at FERC for the legislative victories we attained in the Energy Policy Act of 2005, educating Commissioners, Members of Congress and staff on the need for and role of joint ownership in getting needed transmission built, and promoting understanding of the need for greater accountability by Regional Transmission Organizations and Independent System Operators. This agenda was accomplished, under the leadership of the TAPS Joint Ownership and RTO Accountability Task Forces, through several rounds of meetings between groups of TAPS members and Capitol Hill offices, Executive Branch officials, FERC Commissioners and staff and trade press and through related activities by TAPS’ Washington representatives. As a result of these efforts, several FERC Commissioners have expressed interest in holding a technical conference on joint ownership of transmission, which we hope will be scheduled soon. In addition, there is increased interest on Capitol Hill in holding oversight hearings on wholesale electricity markets, including RTO accountability.

NERC/NAESB

TAPS has been active in the transformation of NERC into the Electric Reliability Organization authorized by the Energy Policy Act of 2005 to establish and enforce mandatory reliability standards subject to FERC review. This change has added importance to participating in the standards development process at NERC and, for the related business practices, at NAESB. Since his “retirement” from Vermont Public Power Supply Authority last summer, Bill Gallagher has mobilized and coordinated TAPS efforts to monitor and participate in NERC and NAESB activities to protect the interests of TDUs. In particular, TAPS has worked to ensure TDU representation at both NERC and NAESB, including on joint NERC/NAESB drafting teams.

As FERC has moved to implement the reliability provisions of the Energy Policy Act, TAPS has also actively participated in NERC-related filings at FERC (discussed below).

FERC

FERC Non-Reliability Initiatives (including EPAct Implementation)

Preventing Undue Discrimination and Preference in Transmission Service (RM05-25) (OATT Reform) and Available Transmission Capability (RM05-17)

  • TAPS Rehearing of Order 890 (March 19, 2007).
  • TAPS/APPA Post-Technical Conference Comments regarding Designation of System Power Contracts as Network Resources (August 13, 2007).
  • TAPS Supplemental Post-Technical Conference Comments seeking clarification of the Non-Firm Sales definition (November 5, 2007).

Standards of Conduct for Transmission Providers (RM07-1)

  • TAPS Initial Comments on FERC’s January 29, 2007 NOPR (March 30, 2007).
  • TAPS Reply Comments (April 30, 2007).
  • TAPS highlight issues in its June 15, 2007 meetings with FERC Commissioners.

Market-Based Rates for Public Utilities (RM04-7)

  • TAPS (with APPA, ElectriCities, and PMPA) files Supplemental Comments on legal authority for must offer requirement for those with market power (February 1, 2007).
  • TAPS (with APPA) Request Rehearing and Clarification of final rule (July 23, 2007).

Wholesale Competition in Regions with Organized Electric Markets (RM07-19 and AD07-7)

  • Roy Thilly (WPPI) appears at February 27, 2007 FERC Conference.
  • TAPS Comments Following-Up on Conference (March 13, 2007).
  • Duane Dahlquist (Blue Ridge) and Marc Gerken (AMP-Ohio) appear at the May 8 FERC Conference.
  • TAPS Comments on FERC’s June 22, 2007 Advance Notice of Proposed Rulemaking (September 14, 2007).

Promoting Transmission Investment through Pricing Reform (RM06-4)

  • TAPS Rehearing of December 22, 2006 rehearing order (January 22, 2007).

Transactions Subject to Section 203 Filing Requirements (RM05-34/PL07-1)

  • March 8, 2007 technical conference (Mark Hegedus speaks for TAPS on need to broaden merger metrics).
  • TAPS (with APPA/NRECA/TDU Systems) supports September 19, 2007 antitrust/economics professors letter expressing concern that FERC did not accept antitrust community merger review recommendations (October 29, 2007).
  • FERC Reliability Initiatives (including EPAct Implementation)

ERO Certification (RR06-1)

  • TAPS Comments on NERC Compliance Monitoring and Enforcement Program (January 10, 2007).
  • TAPS Conditional Protest of NERC Compliance Filing, including compromise language (negotiated with and supported by NERC) concerning committee composition (February 2, 2007).
  • TAPS Motion to Intervene and Comments on revised Compliance Monitoring and Enforcement Program (November 30, 2007).

Reliability Standards (RM06-16)

  • With the help of the Gayle Mayo-led TAPS task force, TAPS Comments on Reliability Standards NOPR (January 3, 2007).
  • Roy Thilly participates in compliance registry criteria negotiations with NERC, resulting in NERC’s February 6 submission of revised registry criteria, which TAPS supports through Supplemental Comments (February 13, 2007).
  • TAPS (with APPA/NRECA) Joint Answer to FirstEnergy’s Comments on NERC’s Joint Registration Organization Compliance Filing (June 19, 2007).

Cyber-Security Standards (RM06-22)

  • TAPS Comments on NOPR (October 5, 2007).

NERC Compliance Registry Proceedings

  • TAPS intervenes in two FRCC appeals (RC07-3 and -5) (October 9 and 11, 2007).
  • TAPS intervenes in RFC appeals (RC07-4, -6 and -7) and file comments following up on the October 12 technical conference (October 29, 2007).