Regional State Advisory Committee (RSAC)

1. Regional State Advisory Committee (RSAC) Jeff Schlegel and Richard Sedano, with significant input from the NEDRI Energy Efficiency Working Group December 10, 2002

2. Introduction • Paper addresses many RSAC-related issues -- not limited to energy efficiency • Started with and built upon the text from the FERC SMD NOPR and National Governors Association (NGA) • Combined aspects of the RSAC, the multi-state entity (from NGA), and the NE Power Coordinating Council (Sedano’s SE paper) • Focused on regional system and issues

3. Topics • RSAC vision and foundation (building on FERC and NGA text) • Roles, scope, and range of issues (e.g., coordinated oversight or advice?) • Responsibilities • Composition and governance • Staffing • Funding

4. RSAC Mission (proposal) • The purpose of the Regional State Advisory Committee (RSAC), a multi-state entity, is to coordinate oversight of state and federal policies concerning wholesale and retail markets and to serve as a regional information resource to guide the development and operation of a safe, reliable, adequate, and equitable electric energy system to serve the public interests of the New England region consistent with economic and environmental policy goals.

5. Quotes from FERC SMD NOPR • The Commission is proposing to establish a formal role for state representatives to participate on an ongoing basis in the decision-making process… • This coordinated oversight will ensure fulfillment of federal public interest responsibilities in a manner that includes the views of states throughout the region. • The RSAC can bring a valuable regional perspective to these issues and should play a role in deciding these issues in partnership with the Commission (i.e., FERC) (note: the context was market monitoring, rate design, revenue requirements, and planning and expansion)

6. Range of Issues for RSAC • Resource adequacy standards and policies • System [Transmission] planning and expansion • Rate design and revenue requirements • Market power and market monitoring • Demand response and load management • Distributed energy resources [generation] and interconnection policies • Energy efficiency planning, policies and programs • Environmental issues and requirements • RTO management and budget review • Gas and fuel system planning as it relates to electricity List adopted from FERC SMD NOPR (underlines are additions, brackets are deletions)

7. Coordinated Oversight RSAC ?

8. RSAC Responsibilities • Serve as a regional electric system planner, information clearinghouse, and policy forum – focused on the views of the states in the region • Work in coordination with ISO-New England on transmission planning issues (ISO-NE would continue to have primary responsibility for transmission planning within overall system planning)

9. Composition and Governance • Two representatives from each state • Appointed by governor • Guidelines (not directives) for governors • Appointees should have experience in energy markets, utility regulation, environmental regulation, and/or siting • Each state delegation to be unanimous • FERC and ITP/RTO – non-voting liaisons • Other organizations – non-voting observers

10. Staffing and Funding • Given the responsibilities identified, RSAC would be served by professional staff • Conduct or coordinate review, research, planning, and other activities to serve RSAC functions • Staffing could be supplemented by member states, by mutual agreement • Funded by a rolled-in regional tariff

11. What to call it? Regional State Advisory Committee (RSAC) -or- Regional System Advisory and Coordinating Committee (or Council) (RSACC)

12. Topics for NEDRI Discussion • RSAC vision and foundation • Roles, scope, and range of issues (e.g., coordinated oversight or advice?) • Specific responsibilities • Composition and governance • Staffing • Funding • What to call it?