Congestion Management Reform
This document contains the series of motions voted by the Board of Governors at their meeting of 7-Sep-2000 related to Congestion Management Reform.
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MOVED: that the Board adopt points 1-2 and add point 1, below, from the TURN/UCAN "Minimum Requirements for Support of Proposed Congestion Management Reform (CMR)" document dated 6-Sep-2000.

"Structure each market design element to provide incentives for participants to reveal true preferences, based on underlying costs, in order to reduce strategic manipulation that results in market power abuse. This requires (a) market mechanisms that make self-interest consistent with non-strategic market behavior, and (b) that each participant truthfully reveals its preferences, no matter what other market participants do (i.e., do not use specific circumstances to take monopoly profits)."

Moved: Florio Second: Woychek
Board Action: Failed Vote Count: 12-5-2	
Role call vote not taken. Abstensions are OK, do not know who did not vote and remainder of the No votes.	
Barkovich    
Blue              
Carnahan      
Cotton          N
Edwards         N
Fielder        
Florio          
Hapner       
	Ingwers      
Johanson     N 
Kehrein        
Kirshner      
McNally        
Patel        
Ponder       A
Pope         A
	Roscoe	 
Smutny-Jones 
Swanson       
White        
Winter       
Wiseman      
Woods        
Woychik      

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Design Principles
1.	The purpose of Congestion Management Reform (CM Reform), consistent with FERC’s direction, is to redesign the ISO’s existing Congestion Management approach to: 
•	Ensure that final forward schedules represent feasible flows on the transmission system; 
•	Create more accurate locational price signals than currently exist;
•	Prevent the exercise of locational market power; and
•	Provide more information to Market Participants so as to facilitate forward market management by SCs.
2.	Structure forward and real-time markets to be consistent with real-time operational requirements, which are based on engineering best practices and established reliability criteria.  This requires that: 
•	Prices are established in real time to induce market participants to offer resources and take actions that are consistent with operating needs for maintaining reliability; and
•	The same scarce transmission resources are allocated and priced consistently across all market time frames.

Moved: Kehrein  Second: Blue
Board Action: Passed Vote Count: 14-2-5	
Barkovich    Y
Blue         Y     
Carnahan     Y 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       A   
Hapner       Y
Ingwers      A
Johanson     A 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Locational Pricing Areas (LPAs) 
3.	The definition of LPAs will be based on the engineering requirements, criteria and practices that guide real-time operation to ensure grid reliability, as formalized in Operating Procedures  and Nomograms.  
4.	In contrast to today’s approach for revising zonal boundaries based on intra-zonal congestion costs, future revisions to LPA boundaries will be driven primarily by changes in grid operating requirements and practices, system conditions and network topology.
5.	Proposed changes to LPA boundaries will be supported by numerous on-going analyses to monitor and assess the performance of the current configuration of LPAs, and by engineering studies to establish the best operating practices consistent with any changes in system conditions or network topology.
6.	Based on existing operating practices and Management’s current assessment of engineering considerations, the ISO will initially define 11 LPAs:  San Francisco, Greater Bay Area, San Diego, LA Orange County, Humboldt, Fresno, North Bay, Geysers, NP15, SP15, and ZP26.  The first 8 are Local Reliability Areas (LRAs), the last 3 are the present active zones net LRAs.  As further engineering studies are conducted in connection with CM Reform implementation, the ISO may revise this list as needed, and in that case will bring any revisions before the Board. 
7.	The new configuration of LPAs will represent the finest level of locational resolution for the purpose of setting prices in the ISO markets.  Price differences among the LPAs will result from the different local reliability needs of each of the LPAs and from forward and real-time congestion on the Inter-LPA interfaces. 
8.	The ISO will publish information to the market, including the grid Operating Procedures (OPs) and Nomograms used by operators to ensure real-time reliability, and related information including current system conditions and load forecasts, and the energy and capacity that will be needed in real time for local reliability in each LPA. 

Moved: Barkovich  Second: Kehrein
Board Action: Passed Vote Count: 14-2-5	
Barkovich    Y
Blue         Y     
Carnahan     Y 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       A   
Hapner       Y
Ingwers      A
Johanson     A 
Kehrein      Y  
Kirshner     Y 

	McNally      X  
Patel        Y
Ponder       Y
Pope         A
Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Commercial Network Model
9.	The ISO will create a Commercial Network Model (CNM) to be used by the ISO in operating its markets.  
10.	The pricing nodes of the CNM will be the LPAs and the external scheduling points. 
11.	The Operating Procedures and Nomograms that guide real-time operation will be used to define the Inter-LPA Interfaces that connect the Local Reliability Areas (LRAs) to each other and to the rest of the system. 
12.	The CNM will have a looped structure in contrast to today’s purely radial structure of zones. 
13.	SCs will continue to schedule generation at the bus level as is done today.  SCs will be required to schedule load at the LPA level, and may schedule load at a finer level if they prefer.
14.	The CNM will be used in the ISO markets as follows:  
•	Imbalance Energy will be dispatched in real time using an optimization program in conjunction with the CNM, possibly resulting in different real-time prices in some LPAs and at some external scheduling points when there is real-time Inter-LPA congestion.   
•	Day-ahead and hour-ahead congestion management will be performed using the CNM, for the purpose of allocating and pricing Inter-LPA transmission. 
•	For each LPA, forward commitments of energy and capacity will be procured from resources needed for local reliability (“Local Reliability Service”), in such a way as to mitigate any locational market power these resources may be able to exercise.  
•	Firm Transmission Rights (FTRs) will be auctioned for the Inter-LPA interfaces and interties. 

Moved: Blue  Second: Barkovich
Board Action: Passed Vote Count: 13-2-6	
Barkovich    Y
Blue         Y     
Carnahan     A 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       A   
Hapner       Y
Ingwers      A
Johanson     A 
Kehrein      Y  
Kirshner     Y 
	McNally      X  
Patel        Y
Ponder       Y
Pope         A
Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:

Real-time Dispatch
15.	The operator will use an optimization program in conjunction with the CNM to dispatch resources, simultaneously balancing demand and supply and managing real-time congestion. 
16.	The optimization program will determine, every ten minutes, the optimal dispatch of participating resources, taking into account resource capability (e.g., ramp rates) as well as Inter-LPA transmission constraints.  With this approach, real-time Imbalance Energy prices could be different in several LPAs when there is real-time congestion on one or more of the Inter-LPA interfaces.
17.	In contrast to today, when there is real-time congestion on an inter-tie there will be different real-time prices for the LPA and the external scheduling point on either side of that inter-tie. 
18.	Even though forward CM will ensure that schedules are feasible, Intra-LPA congestion (i.e., within LPAs) can still occur in real time due to departures from schedule, load forecast deviations, or changes in system conditions.  The operator will resolve these problems outside of the optimization program, by dispatching energy from the Contingency Capacity procured in the forward Local Reliability Service market, at market-power mitigated energy prices. 
19.	Using an optimization program for real-time operation will eliminate the need for the existing “target price” mechanism (which is currently used to adjust bids in BEEP to prevent the ISO from executing economic INC-DEC trades to reduce real-time energy costs).  The proposed real-time optimization approach will in fact execute energy trades whenever DEC bid prices exceed INC bid prices, and thus will minimize total Imbalance Energy costs on a 10-minute basis. 

Moved: Kehrein  Second: Hapner
Board Action: Failed Vote Count: 11-3-7	
Barkovich    Y
Blue         Y     
Carnahan     A 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       A   
Hapner       Y
Ingwers      A
Johanson     A 
Kehrein      Y  
Kirshner     Y 
	McNally      X  
Patel        A
Ponder       Y
Pope         A
Roscoe       Y   
Smutny-Jones N
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:

Real-time Dispatch
15. 	The operator will use an optimization program in conjunction with the CNM to dispatch resources, simultaneously balancing demand and supply and managing real-time congestion. 
16. 	The optimization program will determine, every ten minutes, the optimal dispatch of participating resources, taking into account resource capability (e.g., ramp rates) as well as Inter-LPA transmission constraints.  With this approach, real-time Imbalance Energy prices could be different in several LPAs when there is real-time congestion on one or more of the Inter-LPA interfaces.
17. 	In contrast to today, when there is real-time congestion on an inter-tie there will be different real-time prices for the LPA and the external scheduling point on either side of that inter-tie. 
18. 	Even though forward CM will ensure that schedules are feasible, Intra-LPA congestion (i.e., within LPAs) can still occur in real time due to departures from schedule, load forecast deviations, or changes in system conditions.  The operator will resolve these problems outside of the optimization program, by dispatching energy from the Contingency Capacity procured in the forward Local Reliability Service market, at market-power mitigated energy prices. 
19. 	Using an optimization program for real-time operation will eliminate the need for the existing “target price” mechanism (which is currently used to adjust bids in BEEP to prevent the ISO from executing economic INC-DEC trades to reduce real-time energy costs).  The proposed real-time optimization approach will in fact execute energy trades whenever DEC bid prices exceed INC bid prices, and thus will minimize total Imbalance Energy costs on a 10-minute basis. 

Moved: Hapner Second: Blue
Board Action: Passed Vote Count: 14-2-5	
Barkovich    Y
Blue         Y     
Carnahan     A 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       Y   
Hapner       Y
Ingwers      A
Johanson     Y 
Kehrein      Y  
Kirshner     Y 
	McNally      X  
Patel        A
Ponder       Y
Pope         A
Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:

Day-Ahead and Hour-Ahead Congestion Management
20. 	To manage forward congestion across the Inter-LPA interfaces, the Congestion Management software (CONG) will employ an optimization program in conjunction with the Commercial Network Model.  
21. 	SCs will be required to schedule generation at the bus level, as they do today.  Loads may be scheduled at the bus or the LPA level.  A pre-processor to CONG will aggregate submitted schedules to the LPA level for running CONG.  CONG will, however, keep track of all utilized adjustment bids and schedule adjustments at the original resource level. 
22. 	Allocation and pricing of constraints in the forward markets will be done using adjustment (INC and DEC) bids, as it is done today.  
23. 	POLICY DECISION – Market Separation Rule
RECOMMENDATION:  The market separation rule will apply as it does today, to maintain each SC’s schedule in balance as CONG selects INC and DEC bids to resolve congestion. 
ALTERNATIVE:  Voluntary relaxation of the market separation rule. 
24. 	The ISO will also run a full internal network model (3000 busses), utilizing all actual constraints in the system, as part of its ongoing monitoring to evaluate the performance of the current configuration of LPAs and to assess whether LPA boundaries or other features of the CNM need to be modified.  
25. 	The congestion iteration of today’s day-ahead market will be retained.  Adjustment bids that are not used in the first iteration will be published on a voluntary basis, to facilitate inter-SC trading to relieve congestion.  A new activity rule will be implemented that selects the results of either the 1st or 2nd iteration as the final schedules, depending on which had lower total Inter-LPA congestion costs. 
26. 	Ancillary Services (A/S) will not be procured at the LPA level, but only system-wide or within competitive congestion regions (i.e., what are today’s active zones).  
27. 	FTRs may be used for scheduling A/S on inter-ties, and if used in this way they will provide A/S schedules the same priority against curtailment as firm energy schedules that use FTRs.  (As today, in the absence of congestion A/S can be scheduled on unused inter-tie capacity without using FTRs.) 
28. 	FTRs will have priority for use of congested interfaces in the event of curtailment, if attached to day-ahead schedules, the same as today. 
29. 	Some additional Day-Ahead and Hour-Ahead schedule validation elements will apply to submitted schedules, to ensure that Local Reliability Service (LRS) resources have been scheduled as committed, and that certain types of less prevalent constraints that are not captured in the Nomograms (e.g., clearances on gen-ties) are not violated. 
30. 	Following the running of the usual CM for firm schedules, the ISO will run a market for Recallable Transmission Service (RTS).
Moved: Kehrein  Second: Blue
Board Action: Passed Vote Count: 13-3-4	
Barkovich    Y
Blue         Y     
Carnahan     X 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       N   
Hapner       Y
	Ingwers      A
Johanson     A 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:

Local Reliability Service and Locational Market Power Mitigation
31. 	The ISO will obtain forward commitments of resources needed for local reliability primarily through a Local Reliability Service (LRS) procurement for each LRA, and in some instances for non-LRA LPAs when temporary system conditions create opportunities for exercise of locational market power.   
32. 	The ISO will allow SCs to self-provide LRS, with each SC’s LRS requirement defined to be consistent with LRS cost allocation.  The ISO will then conduct its own LRS procurement for any additional needs that are not self-provided by the SCs. 
33. 	POLICY DECISION – Method of Obtaining Reliability Resource Commitments
RECOMMENDATION:  The LRS procurement will be performed for each operating day, one day prior to the competitive day-ahead Congestion Management process (two days ahead of the operating day), with supplementary day-of procurement to meet additional LRS needs that may result from changing system conditions and revised load forecasts. 
ALTERNATIVES:  (1) Use a long-term contract approach (similar to but not the same as today’s RMR) for procuring all LRS resources.  (2) Require needed resources to appear in forward schedules with Adjustment Bids that are capped to mitigate market power, and dispatch these resources to the needed levels in running forward Congestion Management (CONG). 
34. 	The ISO will retain a contract option similar to today’s RMR “Condition 2” that can be elected by those resources needed for local reliability that would not otherwise be viable in the markets. 
35. 	The LRS procurement will be determined based on Operating Procedures and Nomograms, and forecasts of load and system conditions, and will be defined as a quantity of committed capacity called “Minimum Reliability Capacity” (MRC) for each LRA and in some cases from specific resources.  
36. 	The commitment of a specific quantity of MRC will consist of two components: 
•	Minimum Reliability Energy (MRE) – a specified portion of the MRC that must be scheduled as energy in the forward markets against load in the relevant LRA, as part of an SC’s balanced schedule; 
•	Contingency Capacity (CC) – the remaining MRC above the level of MRE that must be available for dispatch in real time; the CC does not have to be unloaded like typical reserve capacity, but may be forward scheduled or bid into the A/S or Supplemental Energy markets; 
37. 	A resource that provides LRS will receive a capacity payment ($/MW/hr) based on the total Minimum Reliability Capacity (MRC) = MRE + CC.  If the resource sells a portion of its awarded CC to the ISO as A/S, the resource will not receive the LRS capacity payment for that portion. 
38. 	The ISO will not make an energy payment for the MRE that is required to be scheduled in the forward markets; rather, it will be up to the resource to sell this energy through one of the forward energy markets or a bilateral contract.  The ISO will, however, pay the resource for energy dispatched in real-time out of the CC portion of LRS. 
39. 	The LRS procurement will be conducted as an auction to encourage providers to bid competitively where the potential for competition exists.  In many LRAs, however, competition for LRS will not exist initially. 

Moved: Kehrein  Second: Kirshner
Board Action: Withdrawn Vote Count: Deferred Pope/Florio	

MOVED that the Board deter consideration of points 31-39.
Moved: Pope  Second: Florio
Board Action: Passed on a voice vote (13 yes)	

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:

40. 	LRS capacity bids will be capped to mitigate market power, recognizing that in most cases only one or two suppliers would be able to provide the needed service in each LRA.  
41. 	POLICY DECISION – LRS Bid Cap Level 
RECOMMENDATION:  The Bid Cap level should be set with a primary emphasis on mitigating locational market power.  This means that LRS capacity bid caps should not exceed the level needed to compensate resources for their costs of meeting the ISO’s LRS requirements. 
ALTERNATIVE:  The Bid Cap should be set with a primary emphasis on sending locational signals for investment.  This means that LRS capacity bid caps should be high enough to provide incentives for new resources to locate within the Local Reliability Areas. 
42. 	POLICY DECISION – LRS Bid Cap Structure
RECOMMENDATION:  The Bid Cap will be constant across the ISO area, with an annual true-up to allow LRS resources to recover costs incurred in providing LRS. 
ALTERNATIVES:  (1) The Bid Cap will be LRA-specific, and constant for all resources providing service to a given LRA.  (2) The Bid Cap will be resource-specific. 
43. 	Because of the need for LRS resources to ensure reliable real-time operation, all resources within the ISO-controlled grid will be required to participate in the LRS procurement, through the use of default bids (at the level of the Bid Cap) for resources that do not actively submit bids, and substantial penalties imposed on resources that sell LRS capacity and then fail to schedule MRE in the forward markets or deliver energy or capacity in real-time.  Provision will be made to exempt resources from these penalties under force majeur conditions and to perform necessary scheduled maintenance. 
44. 	To prevent exercise of market power in real-time by resources needed for local reliability, dispatch of energy out of Contingency Capacity will be paid as a price taker in the real-time Imbalance Energy market. 
Moved: Florio Second: Kehrein
Board Action: Passed Vote Count: 16-0-5	
Barkovich    Y
Blue         A     
Carnahan     A 
Cotton       Y   
Edwards      A  
Fielder      X  
Florio       Y   
Hapner       Y
	Ingwers      A
Johanson     Y 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      Y

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
45. 	POLICY DECISION – LRS Cost Allocation
RECOMMENDATION:  The cost of the LRS procurement will be allocated initially to SCs based on their loads within each PTO service area.  Over five years this will shift towards allocation based on loads within each LPA for which LRS was procured. 
ALTERNATIVE:  (1) Allocate LRS costs to SCs based on loads within each LPA initially (i.e., no transition).  (2) Allocate LRS costs to PTOs (as RMR costs are allocated today). 

Moved: Woychik Second: Blue 
Board Action: Failed Vote Count: 11-7-3	
Barkovich    N
Blue         Y     
Carnahan     A 
Cotton       N   
Edwards      N  
Fielder      X  
Florio       Y   
Hapner       Y
	Ingwers      N
Johanson     Y 
Kehrein      N  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       N   
Smutny-Jones Y
Swanson      N 
White        X
Winter       Y
Wiseman      Y
Woods        A
Woychik      Y

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Firm Transmission Rights
46. 	The total amount of FTRs auctioned will be “100 percent.”  This is defined as the difference between the WSCC non-simultaneous path rating (where it exists) and the total amount of reserved ETC capacity rights at that path rating.  Where no WSCC rating exists (i.e., for new Inter-LPA interfaces to be created), the ISO would develop ratings to be used for FTR allocation and for CM in general. Allocation of actual ETC rights on these new interfaces and the impact of shift factors on these interfaces have not yet been addressed. 

Moved: Barkovich Second: Patel 
Board Action: Failed Vote Count: 12-4-4	
Barkovich    Y
Blue         Y     
Carnahan     X 
Cotton       A   
Edwards      A  
Fielder      X  
Florio       N   
Hapner       N
	Ingwers      A
Johanson     Y 
Kehrein      N  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Firm Transmission Rights
46. 	FTRs will be financial rights only. The total amount of FTRs auctioned will be “100 percent.”  This is defined as the difference between the WSCC non-simultaneous path rating (where it exists) and the total amount of reserved ETC capacity rights at that path rating.  Where no WSCC rating exists (i.e., for new Inter-LPA interfaces to be created), the ISO would develop ratings to be used for FTR allocation and for CM in general. Allocation of actual ETC rights on these new interfaces and the impact of shift factors on these interfaces have not yet been addressed. 

Moved: Florio Second: Woychik
Board Action: Failed Vote Count: 3-15-1	
Barkovich    X
Blue         N     
Carnahan     X 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       Y   
Hapner       N
	Ingwers      N
Johanson     Y 
Kehrein      N  
Kirshner     N 
McNally      X  
Patel        N
Ponder       N
Pope         N
	Roscoe       N   
Smutny-Jones N
Swanson      N 
White        X
Winter       N
Wiseman      N
Woods        N
Woychik      Y

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
Firm Transmission Rights
46. 	The total amount of FTRs auctioned will be “100 percent.”  This is defined as the difference between the WSCC non-simultaneous path rating (where it exists) and the total amount of reserved ETC capacity rights at that path rating.  Where no WSCC rating exists (i.e., for new Inter-LPA interfaces to be created), the ISO would develop ratings to be used for FTR allocation and for CM in general. Allocation of actual ETC rights on these new interfaces and the impact of shift factors on these interfaces have not yet been addressed. 

Moved: Kehrein Second: Roscoe 
Board Action: Passed Vote Count: 13-4-3	
Barkovich    Y
Blue         Y     
Carnahan     X 
Cotton       N   
Edwards      A  
Fielder      X  
Florio       N   
Hapner       N
	Ingwers      A
Johanson     Y 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
47. 	Initially, a one-year auction would release 50 approximately 75 percent of this amount.  A short-term (monthly) auction would release an amount equal to the difference between the initial release and the minimum hourly value of [TTC – ETC] for the month, based on a forecast of TTC for the month.  The remainder would be allocated in the New Firm Uses market. 

49.	Initially there will be no position limits, but and the current reporting and monitoring provisions will be retained. The position limit shall not exceed 50% of the total auctioned annually on any path, with actual limit(s) to be established at a later date after reports have been provided by the MSC and DMA.

Moved: Kehrein Second: Johanson 
Board Action: Passed Vote Count: 13-3-4	
Barkovich    Y
Blue         Y     
Carnahan     X 
Cotton       A   
Edwards      A  
Fielder      X  
Florio       Y   
Hapner       N
	Ingwers      A
Johanson     Y 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        N
Ponder       Y
Pope         A
Roscoe       Y   
	Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      N

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
48. 	POLICY DECISION – Allocation of FTR Auction Revenues and Usage Charges 
RECOMMENDATION:  Annual and monthly FTR auction revenues and congestion usage charge revenues obtained from New Firm Use (NFU) capacity will be allocated to the appropriate PTOs, as it is today.  
ALTERNATIVE:  Allocate these auction and usage charge revenues to a path-specific transmission upgrade fund.  

Moved: Woychik Second: Barkovich
Board Action: Passed Vote Count: 15-2-4 	
Barkovich    Y
Blue         Y     
Carnahan     A 
Cotton       Y   
Edwards      A  
Fielder      X  
Florio       N   
Hapner       Y
	Ingwers      A
Johanson     Y 
Kehrein      N  
Kirshner     Y 
McNally      X  
Patel        Y
Ponder       Y
Pope         A
	Roscoe       Y   
Smutny-Jones Y
Swanson      Y 
White        X
Winter       Y
Wiseman      Y
Woods        Y
Woychik      Y
2	

MOVED that the Board direct Management to continue to develop the details of the Congestion Management Reform Recommendation consistent with the following:
49. 	Initially there will be no position limits, but and the current reporting and monitoring provisions will be retained. The position limit shall not exceed 50% of the total auctioned annually on any path, with actual limit(s) to be established at a later date after reports have been provided by the MSC and DMA.

Moved: Hapner Second: Woychek 
Board Action: Failed Vote Count: 10-2-8	
Barkovich    Y
Blue         Y     
Carnahan     A 
Cotton       A   
Edwards      A  
Fielder      X  
Florio       Y   
Hapner       Y
	Ingwers      A
Johanson     Y 
Kehrein      Y  
Kirshner     Y 
McNally      X  
Patel        N
Ponder       A
Pope         A
	Roscoe       Y   
Smutny-Jones N
Swanson      A 
White        X
Winter       Y
Wiseman      X
Woods        A
Woychik      Y