1 Can we have a well-functioning interconnection-wide power market that has different market structures in different regions? Do different market structures in various parts of the Western Interconnection promote higher prices? Does the difference between California PX-based rated and cost-of-service regulation in the Southwest, Northwest or at agencies like LADWP lead to higher prices because regulated utilities can afford to bid higher for incremental supplies? What about the impact of the absence of presence of fuel adjustment clauses? The impact of “power laundering” – California Energy Commission “tees up” the topic.

2 How significant are transmission constraints in driving prices up? Particularly, what, if any, impact did transmission constraints have on prices during peak demand this summer – Oregon Office of Energy and Northwest Power Planning Council “tee up” the topic

3. Would greater diversity in the ownership of generation promote competitive markets or would the benefits of more diverse ownership be offset by the aggregation of generation supplies by bidders into the market? – California Electricity Oversight Board (possible in conjunction with Alberta) “tee up” the topic

4. What are the opportunities to increase demand responsiveness? What intervention by the state may be needed? – Oregon PUC will “tee up” the topic

5. In a market with tight supplies, is it politically impossible to allow market pricing without some type of price mitigation? Does price mitigation interfere with the goal of an efficient market? Is some type of regulatory intervention needed to mitigate price volatility? – California Electricity Oversight Board will “tee up” the topic

12:30 p.m. Lunch – working lunch

1:30 p.m. Continued discussion of targeted topics

6. Can rules be changed that will result in economically efficient markets (e.g., bids near marginal cost) or is that impossible given the characteristics of electricity (e.g., electricity cannot be stored)? – California Electricity Oversight Board will “tee up” the topic

2:45 p.m. Based on the California experience, what are the legal standards for

reviewing market behavior by state and federal agencies

Eric Saltmarsh, CA EOB

3:15 p.m. Market monitoring practices and coordination of monitoring among

RTOs

What the California ISO and PX do in market monitoring

California agencies

Market monitoring plans in RTO-West and DSTAR

Phil Carver (OR OE)

Prasad Poturri (NM PRC)??

3:45 p.m. Next steps by the Task Force

4:30 p.m. Adjourn