[Federal Register Volume 72, Number 50 (Thursday, March 15, 2007)]
[Notices]
[Pages 12173-12174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4713]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD07-8-000]


Review of Market Monitoring Policies; Second Notice of Technical 
Conference

March 9, 2007.
    On January 25, 2007, the Federal Energy Regulatory Commission 
(Commission) announced that a conference will be held to review the 
Commission's general policies regarding market monitoring, on April 5, 
2007, at the Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426 in the Commission Meeting Room. The 
Commission had announced its intent to hold this conference in PJM 
Interconnection, LLC., order on reh'g, 117 FERC ] 61,263 (2006).
    The Commission is making one change in the schedule with this 
notice, viz., to change the beginning of the conference from 9:30 a.m. 
to 9 a.m. (EDT).
    All interested persons are invited to attend. There is no 
registration fee to attend.
    Proactive oversight of the activities of regulated entities is a 
relatively recent development in the history of the Commission's 
utility regulation, one largely driven by the Commission's efforts to 
make greater use of market forces to discipline the activities of 
regulated entities. A significant aspect of this oversight effort has 
been the development of market monitoring units (MMUs) in the 
Commission-regulated Independent System Operators (ISOs) and Regional 
Transmission Organizations (RTOs), along with the establishment of 
independent market monitors (IMMs) of certain vertically integrated 
utilities as a condition of approving those utilities' mergers or 
acquisition of assets. In addition, almost five years ago, the 
Commission dedicated staff members, now located in the Office of 
Enforcement's Division of Energy Market Oversight (DEMO), to monitor 
natural gas and electricity markets. In that capacity, DEMO staff works 
closely with the MMUs and IMMs.
    In the technical conference, the Commission would like to explore 
the effectiveness of MMUs and IMMs both in performing market oversight 
and in serving a variety of interested stakeholders. The Commission 
does not intend to evaluate any individual MMU or IMM or to discuss 
issues in any pending proceeding. Rather, the Commission would like to 
focus on the concepts and principles involved in market monitoring and 
the relationship between the market monitors and the Commission market 
monitoring staff, informed by the experience of the industry since the 
inception of market monitoring. Of course, the Commission does not go 
into this conference with a blank slate. To the contrary, the 
Commission has spoken on many occasions on the role of market monitors 
in generic and case-specific proceedings. The Commission also issued a 
policy statement in May 2005. See Policy Statement on Market Monitoring 
Unit, 111 FERC ] 61,267 (2005) (and citations therein). Accordingly, 
rather than hearing about what it has done, the Commission would like 
to hear about what it should do to improve its market monitoring 
program.
    With these thoughts in mind, the technical conference will be made 
up of two panels, each examining the role and effectiveness of market 
monitors from their respective perspectives, especially as that relates 
to market monitoring in the RTOs and ISOs. The panelists may discuss 
the IMMs as well as the MMUs.
    After time reserved for initial statements by the Members of the 
Commission starting at 9 a.m., the first panel (9:30 a.m. until 10:30 
a.m.) will consist of individuals who have participated in, written 
about, or are otherwise informed about the development of the concept 
and function of market monitoring. Members of this panel will be asked 
to answer the following questions:
    1. What is the Commission's market monitoring role in the context 
of ensuring the competitiveness of wholesale electricity markets?
    2. How do MMUs (as a concept or function) generally serve or 
facilitate that role?
    3. What changes, if any, in the current structure of MMUs could 
enhance their ability to assist the Commission in its market monitoring 
role?
    4. Are there other industries that are subject to comparable 
monitoring activities, and, if so, how are these activities structured?
    The next panel will be held in three parts (10:45 a.m. to 11:45 
a.m., 12 noon to 1 p.m., and 2 p.m. to 3 p.m.) and will consist of 
representatives from the MMUs, the ISOs or RTOs, and the various 
Stakeholders (including market participants, state regulators, and 
consumers), respectively. Members of these panels will be asked to 
answer the following questions:
    1. MMUs' Role With Respect to FERC:
     What are the key functions of the role that MMUs have 
performed?
     Should these functions be changed or improved?
     What changes, if any, in the current structure of MMUs 
would allow them to more effectively assist the Commission in 
performing its market oversight activities?
    2. MMUs' Role with Respect to ISOs/RTOs:
     What are the key functions of the role that MMUs have 
performed with respect to the operations of the ISOs/RTOs, including 
the operation of the transmission grid and Day 1 or Day 2 energy 
markets?
     Should these functions be changed or improved?
     What changes, if any, in the current structure of MMUs 
would allow them to more effectively assist ISOs/RTOs?
    3. MMUs' Role with Respect to the various Stakeholders:
     What are the key functions of the role that MMUs have 
performed with respect to stakeholders?
     Should these functions be changed or improved?
     What changes, if any, in the current structure of MMUs 
would allow them to more effectively assist stakeholders?
    Anyone interested in serving on one of these panels should contact 
Saida Shaalan at 202-502-8278 or by e-mail at [email protected] on 
or before March 22, 2007. Please be advised, however, that the 
Commission may not be able to accommodate everyone who asks to be a 
panelist. Persons interested in serving on panels are therefore 
encouraged to coordinate their positions and choose a single panel 
representative. The Commission will issue a subsequent notice naming 
the panelists and providing further guidance on the format for 
presentations, which will be limited in time (probably five minutes) to 
provide sufficient opportunity for discussion.
    As stated in the first notice issued January 25, 2007, a free 
webcast of this event will be available through www.ferc.gov. Anyone 
with Internet access who desires to view this event can do so by 
accessing www.ferc.gov's Calendar of Events and locating this event in 
the Calendar. The event will contain a link to its webcast. The Capitol 
Connection provides technical support for the Web casts and offers

[[Page 12174]]

access to the meeting via phone bridge for a fee. If you have any 
questions, visit http://www.CapitolConnection.org or contact Danelle 
Perkowski or David Reininger at 703-993-3100.
    Transcripts of the meeting will be available immediately for a fee 
from Ace Reporting Company (202-347-3700 or 1-800-336-6646). They will 
be available for free on the Commission's eLibrary system and on the 
events calendar approximately one week after the meeting.
    FERC conferences and meetings are accessible under section 508 of 
the Rehabilitation Act of 1973. For accessibility accommodations please 
send an e-mail to [email protected] or call toll free (866) 208-
3372 (voice) or 202-502-8659 (TTY), or send a fax to 202-208-2106 with 
the required accommodations.

Philis J. Posey,
Acting Secretary.
[FR Doc. E7-4713 Filed 3-14-07; 8:45 am]
BILLING CODE 6717-01-P