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<br />EXAMPLE <br /> <br />JOHN W. BENTINE <br /> <br />DIRECT DIAL 614-334-6121 <br />jbentine@~wslaw.com <br /> <br />January 6,2009 <br /> <br />VIA REGULAR AND ELECTRONIC MAIL <br /> <br />[Legal Advisor] <br />[CityNillage/Borough of <br />[ Address] <br />[Address] <br /> <br />RE: FERC Order 719; Action May Be Required <br /> <br />Dear [Legal Advisor]: <br /> <br />On October 17, 2008, the Federal Energy Regulatory Commission ("FERC") issued a <br />new rule ("FERC Order 719") that requires Independent System Operators and Regional <br />Transmission Organizations ("R TOs") to allow retail customers-including the retail customers <br />of public power systems-to bid and sell their retail demand response into the RTOs' wholesale <br />electricity markets. FERC Order 719 also requires RTOs to accept bids from third-party <br />Aggregators of Retail Customers ("ARC") that aggregate the demand response of individual <br />retail customers for purposes of participating in R TO markets. <br /> <br />The new requirements of FERC Order 719 may significantly undermine existing, planned <br />or potential demand response programs of public power systems, and could require substantial <br />changes to their resource planning, operations, and rate design. Although AMP-Ohio supports <br />the development of appropriate demand response programs, which can provide cost savings for <br />all customers as well as environmental benefits, AMP-Ohio strongly recommends that its <br />members consider whether the FERC Order 719's wholesale-market-based approach to retail <br />demand response is compatible with existing, planned or potential demand response programs <br />and resource planning. <br /> <br />FERC Order 719 also provides a mechanism for most public power systems to "opt-out" <br />of many of FERC Order 719's requirements. If you conclude that it is not in the best interest of <br />the [CityNillage/Borough of 1 to allow third party ARCs to aggregate loads of <br />retail customers on your system, AMP-Ohio strongly encourages you to "opt-out" of the FERC <br />Order 719 requirements. <br /> <br />AMP-Ohio, in conjunction with the American Public Power Association, has developed a <br />model ordinancelresolution, consistent with the ,guidance provided by FERC Order 719, that <br />contains the necessary language that will allow the [CityNillage/Borough of 1 to <br />"opt-out" of many of the FERC Order 719 requirements ("Model Ordinance"). Attached is the <br />