Alternative Dispute Resolution at Rtos, Isos, and Power Pools

Article excerpt

Synopsis:

RTO's and ISO's have increased their use of ADR over the past number of years. This increase is largely attributable to their approved FERC tariffs which require ADR. It is also the result of an increased awareness and belief that ADR contributes to sound business practice and improved working relationships amongst traditional sellers and buyers in the industry. On May 22, 2007, the Energy Bar Association's Alternative Dispute Resolution Committee hosted a presentation with various leaders of the RTO's, ISO's, and power pools. The Committee extends a special thank you to Robert Wax for his leadership in organizing and moderating this panel discussion. The presentation included the following: Wayne Harris, Chair, MISO ADR Committee, outlined the three step tariff process ranging from negotiation and mediation to arbitration; Don Shonkwiler, Senior Counsel for the California ISO, presented the various authorities for parties to wind up in ADR and the organization's usage of ADR over the past few years; William Museler, for the New England Power Pool, explained that most of the disputes before the NEPOOL board were the result of market design and cost allocation questions; and Craig Glazer from PJM pointed to its Operating Agreement Provisions that call for a two step process-negotiation and then mediation. If mediation is unsuccessful, the mediator offers a non-binding recommendation. Disputes not settled through mediation are sent to binding arbitration and the amount in controversy is less than $1 million. If greater than $1 million the arbitration is non-binding. Additional speakers discussed portions of the Energy ADR Forum Report published in October 2006: Robert Fleishman discussed FERC's Review of ADR Outcomes and George (Chip) Cannon discussed the portion of the report addressing RTO's, ISO's, and power pools.

Energy Bar Association Alternative Dispute Resolution Committee, Panel Presentation - May 22, 2007(1)

PARTICIPANTS

CLARK DOWNS

Jones Day

PAUL MOHLER

Co-Chair ADR Committee

Heller Ehrman LLP

ROBERT WAX

Program Chair and Moderator

Charter Resolution, LLC

PANELISTS FROM RTOS, ISOS, AND POWER POOLS

WAYNE HARRIS

Chair, MISO ADR Committee

Midwest Independent Transmission

System Operator, Inc. (MISO)

DAN SHONKWILER

Senior Counsel

California Independent System

Operator (CAISO)

WILLIAM MUSELER

Chair, NEPOOL Review Committee

New England Power Pool (NEPOOL)

CRAIG GLAZER

Vice President of Government Policy

PJM Interconnection

PANELISTS ON ENERGY ADR FORUM REPORT

REPORT SECTIONS ON ISOS/RTOS

ROBERT FLEISHMAN

Covington & Burling, LLP

Washington, D.C.

GEORGE (CHIP) CANNON

Latham & Watkins, LLP

Washington, D.C.

PROCEEDINGS

I. OPENINGS REMARKS

MR. DOWNS: Good afternoon everybody. I am Clark Downs. I am a partner here at Jones Day, and it is our very great privilege to welcome you here today for this Energy Bar Association Alternative Dispute Resolution Committee Brown Bag Luncheon.

Your speakers have worked very, very hard to put on a really incredibly in-depth presentation. You can tell from the books that are made available to you.

At this point, I would like to introduce Paul Mohler who is a partner with Heller Ehrman here in Washington and the co-chair of the Alternative Dispute Resolution (ADR) Committee of the Energy Bar Association.

Paul.

II. INTRODUCTION

MR. MOHLER: Thank you, Clark, and thanks to Jones Day for hosting this event. We are very appreciative of that and the fine facilities. I would also like to thank our colleagues at the Federal Energy Regulatory Commission (FERC) for preparing and bringing over the presentation materials.

On behalf of the Energy Bar Association's ADR Committee, I am honored to introduce Bob Wax, who has spent over a year organizing this program, from the early concept stage, through arranging for the speakers, and finally the presentation itself today. …