THANK YOU.

GOOD MORNING, THE PURPOSE OF THE OPEN MEETING IS FOR THE COMMISSION TO CONSIDER THE MATTERS THAT HAVE BEEN DULY POSTED IN ACCORDANCE WITH THE GOVERNMENT AND THE SUNSHINE ACT. MEMBERS OF THE PUBLIC ARE INVITED TO OBSERVE WHICH INCLUDES ATTENDING LISTENING AND TAKING NOTES BUT DOES NOT INCLUDE PARTICIPATING IN THE MEETING OR ADDRESSING THE COMMISSION. ACTIONS THAT PURPOSELY INTERFERE OR ATTEMPT TO INTERFERE WITH THE COMMENCEMENT OR CONDUCTING OF THE MEETING OR INHIBIT THE AUDIENCE'S ABILITY TO OBSERVE OR LISTEN TO THE MEETING, INCLUDING ATTEMPTS BY THE AUDIENCE MEMBERS TO ADDRESS THE COMMISSION WHILE THE MEETING IS IN PROGRESS ARE NOT PERMITTED. ANY PERSONS ENGAGING IN SUCH BEHAVIOR WILL BE ASKED TO LEAVE THE BUILDING. ANYONE WHO REFUSING TO LEAVE VOLUNTARILY WILL BE ESCORTED FROM THE BUILDING, ADDITIONALLY, DOCUMENTS PRESENTED TO THE CHAIRMAN, COMMISSIONERS OR STAFF DURING THE MEETING NOT NOT BECOME PART OF THE OFFICIAL RECORD OF ANY COMMISSION PROCEEDING, NOR WILL THEY REQUIRE FURTHER ACTIONS BY THE COMMISSION. IF YOU WISH TO COMMENT ON AN ONGOING PROCEEDING BEFORE THE COMMISSION, PLEASE VISIT OUR WEBSITE FOR MORE INFORMATION, THANK YOU FOR YOUR COOPERATION. [GAVEL ]

MADAM SECRETARY, WE ARE READY TO BEGIN.

GOOD MORNING MR. CHAIRMAN, GOOD MORNING COMMISSIONERS, THIS IS THE TIME AND PLACE THAT HAS BEEN NOTICED FOR THE OPEN MEETING OF THE FEDERAL ENERGY REGULATORY COMMISSION TO CONSIDER THE MATTERS THAT HAVE BEEN POSTED BY THE COMMISSION. PLEASE JOIN US IN THE PLEDGE OF ALLEGIANCE.

ALL: I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.

COMMISSIONERS SINCE THE FEBRUARY OPEN MEETING THE COMMISSION HAS ISSUED 45 NOTATIONAL ORDERS. THANK YOU MR. CHAIRMAN.

THANK YOU MADAM SECRETARY AND GOOD MORNING TO EVERYONE. I WOULD LIKE TO OPEN TODAY'S MEETING WITH EXCITING NEWS BY INTRODUCING THE NEWEST MEMBER OF MY TEAM, JENNIFER MELON. JEN BEGAN HER CAREER IN D. C. 15 YEARS AGO WITH THE CONGRESSIONAL COALITION ON ADOPTION INSTITUTE. SHE WENT ON TO BECOME EXECUTIVE DIRECTOR OF JOINT COUNCIL ON INTERNATIONAL CHILDREN'S SERVICES WHERE SHE WAS INSTRUMENTAL IN THE RATIFICATION OF THE HAY CONVENTION ON THE PROTECTION OF CHILDREN AND COOPERATION IN RESPECT OF INTER-COUNTRY,A TKOPGZ. A SERIAL ENTREPRENEUR, JENNIFER WAS RECOGNIZED AS ONE OF THE 100 MOST INTRIGUING ENTREPRENEURS OF 2018, SHE A GRADUATE OF BUCKNER UNIVERSITY AND PROUD MOM OF THREE CHILDREN. ALREADY JEN HAS JUMPED RIGHT IN AND GOTTEN TO WORK AS MY CONFIDENTIAL ASSISTANT FILLING THE SLOT AFTER LINDSAY GENTRY STEPPED INTO HER NEW POSITION. I WANT TO THANK JEN FOR HER WILLINGNESS TO COME ON AND FULFILL THIS KEY ROLE AND LOOK FORWARD TO CONTINUING TO WORK WITH HER AS WE TACKLE A BIG NUMBER OF ISSUES BEFORE US AT FERC. PLEASE JOIN ME IN WELCOMING JEN TO THE COMMISSION. [ APPLAUSE ] ALSO, AS I ANNOUNCED SEVERAL WEEKS AGO, I WOULD LIKE TO CONGRATULATE [INDISCERNIBLE] ON HER PROMOTION TO DIRECTOR OF THE OFFICE OF ENERGY POLICY AND INNOVATION AND LINDSAY GENTRY ON HER NEW POSITION AS DEPUTY DIRECTOR FOR THE OFFICE OF EXTERNAL AFFAIRS. BOTH OF THEM HAVE BEEN VALUED MEMBERS OF OUR TEAM FOR SOMETIME AND I KNOW THEY WILL BOTH EXCEL IN THEIR NEW ROLES. IN ADDITION, AS I ANNOUNCED YESTERDAY, ANTHONY HAS RESIGNED HIS POSITION AS CHIEF OF STAFF AT THE AGENT. ANTHONY SERVED AS CHIEF OF STAFF FOR ME AND CHAIRMAN MC INTIRE. I WANT TO THANK HIM FOR HIS FRIENDSHIP, WILLINGNESS TO SERVE THE AGENCY AND THE COUNTRY AND WE WISH HIM WELL IN HIS FUTURE VENTURES. NOW ON TO ANOTHER MATTER. AS I HAVE AT OUR LAST TWO OPEN MEETINGS I WOULD LIKE TO SHARE AN UPDATE ON OUR ONGOING EFFORTS TO REVIEW NATURAL GAS PINE LINE RATES FOLLOWING THE TAX CUTS AND JOBS ACT AND THE D. C. CIRCUITS UNITED AIRLINES DECISION. YESTERDAY WE INITIATED AN NGA SECTION FIVE INVESTIGATION TO EXAMINE THE RATES OF ONE NATURAL GAS PIPELINE AND WE ALSO TERMINATED 38 NATURAL GAS LINE RATE PROCEEDINGS FINDING THOSE PROCEEDINGS COMPLIED WITH THE COMMISSION'S FILING REQUIREMENTS AND NO FURTHER ACTION WAS NEEDED AT THIS TIME. I THINK IT'S IMPORTANT TO LOOK BACK ON THE STEPS WE'VE TAKEN OVER THE PAST YEAR ON THIS FRONT. IT WAS ONE YEAR AGO, THAT MARCH 2018 OPEN MEETING THAT THE COMMISSION ISSUED ITS NOTICE OF PROPOSED RULE MAKING PROPOSING THE 501 G PROCESS. WE THEN ISSUED THE FILE FINAL RULE KICKING OFF THE PROCESS IN JULY 2018. AND THE VERY FIRST BATCH OF 501 G FILINGS CAME IN THE DOOR FIVE MONTHS AGO IN OCTOBER OF 2018. OVER THE PAST FIVE MONTHS WE'VE RECEIVED 129 INTERSTATE NATURAL GAS PIPELINE 501 G FILINGS WHICH HAVE REFLECTED A HIGH LEVEL OF ENGAGEMENT AND EFFORT FROM INDUSTRY. I APPRECIATE THE STEPS MANY PIPELINES AND CUSTOMER VS TAKEN AS THEY WORK TOGETHER TO BUILD CONSENSUS AND REACH RATE AGREEMENTS TO RESOLVE THESE MATTERS. AS A RESULT WE'VE APPROVED A DOZEN SETTLEMENTS TO DATE AND WE'VE ALREADY TAKEN ACTION IN 102 OF THE 129 PROCEEDINGS. THAT'S ALMOST 80%. FOR THE REMAINING PROCEEDINGS, WE'RE ACTIVELY WORKING TO RESOLVE THEM AS EXPEDITIOUSLY AS POSSIBLE. ALL THAT'S TO SAY, THIS: I THINK WE'VE DEMONSTRATED OUR COMMUNITY TO WORKING SWIFTLY BUT CAREFULLY THROUGH THESE 501 G FILINGS AND I'M PLEASED WITH THE PROGRESS WE'VE MADE. I COMMEND THE HIGHLY SKILLED COMMISSION STAFF FOR SPEARHEADING THIS EFFORT, THEIR TIRELESS WORK ON THESE COMPLEX ISSUES HAS GOTTEN US TO THIS POINT AND WE'RE READY TO TACKLE THE WORK THAT LIES AHEAD SO WE CAN TAKE PROMPT ACTION IN THE REMAINING PROCEEDINGS. MOVING ON TO ANOTHER MATTER, I'D LIKE TO BRIEFLY NOTE ITEM ESIXOT AGENDA WHICH AN APPLICATION FOR LOUISVILLE GAS AND ELECTRIC AND KENTUCKY UTILITIES TO REMOVE CERTAIN CONDITIONS THAT WERE IMPOSED TO THE COMPANY AS A CONDITION OF THEIR MERGER IN 1998 AND SUBSEQUENT WITHDRAWAL FROM MISO IN 2006. I SUPPORT TODAY'S ORDER BECAUSE IT CAREFULLY EVALUATES CURRENT CONDITION DITIONS AND ENCLUEDS TAKEN--THEY THERE IS NO SUFFICIENT COMPETITION TO PROTECT THE PUBLIC INTEREST WHILE ALLOWING LG& E AND KU TO DISCONTINUE THE MITIGATION. NOW TURNING TO A TOPIC THAT'S BEEN KEY FOCUS OF MINE SINCE JOINING THE COMMISSION. TODAY, WE ARE INITIATING TWO INQUIRIES THAT I'VE BEEN TEEMED TO BEGIN, A BROUGHT LOOK AT OUR LOOK ON EQUITY POLICIES AND AN EXAMINATION OF OUR TRANSMISSION INCENTIVES POLICIES. AS I ANNOUNCED IN NOVEMBER, I BELIEVE THESE POLICIES ARE OVERDUE FOR A FRESH LOOK WITH INPUT FROM ALL INTERESTED STAKEHOLDERS, NOT JUST THOSE THAT HAPPEN TO BE PARTIES TO A PENDING COMPLAINT PROCEEDING. THIRTEEN YEARS HAVE PASSED SINCE CONGRESS ESTABLISHED FPA SECTION 219. SO I THINK IT'S JUST GOOD GOVERNANCE TO LOOK AT WHETHER THESE TWO SETS OF POLICIES ARE PRODUCING THE LEVEL AND TYPE OF TRANSMISSION INVESTMENT THE NATION NEEDS. I'LL HAVE MORE TO SAY ABOUT BOTH OF THESE IMPORTANT PROCEEDINGS LATER IN TODAY'S PROGRAM. BEFORE I OPEN THE FLOOR TO MY COLLEAGUES, I WOULD LIKE TO QUICKLY SHARE SOME INSIGHTS FROM A RECENT VISIT TO THE ENERGY CAPITOL OF THE WORLD. LAST WEEK, I AND MY COLLEAGUE COMMISSIONER MATINME HAD THE PRIVILEGE OF ATTENDING CERO WEEK IN HOUSTON, IT WASSA I GOOD OPPORTUNITY TO ENGAGE WITH FEDERAL, STATE AND LOCAL PARTNERSA SAID WELL AS INDUSTRY STAKEHOLDERS FROM ACROSS THE GLOBE, THIS IS MY FIRST TIME PARTICIPATING IN CERO WEEK OR WHAT I'VE COME TO CALL THE SUPER BOWL OF THE ENERGY WORLD, THE ONLY SUPER BOWL IN WHICH THE NEW ENGLAND PATRIOTS ARE ACTIVE PARTICIPANTS. YET. [LAUGHTER] AND I REALLY APPRECIATED THE WAY THIS EVENT BROUGHT TOGETHER LEADERS FROM ACROSS THE SECTOR TO DISCUSS THE MAJOR ISSUES WE'RE ALL CONFRONTING. I'D LIKE TO TACK A MINUTE TO SHA*EUR A FEW REFLECTIONS FROM THE--SHARE A FEW REFLECTIONS FROM THE WEEK NOW. ONE OF THE HIGHLIGHTS OF MY TRIP THURSDAY WAS THE OPPORTUNITY I HAD TO KEY NOTE THE LUNCH SESSION WHICH FOLLOWED BY DISCUSSION WITH DR. DANIEL YERGAN WHO IS A SKWRAOEUPT IN OUR FIELD. I WILL SPARE YOU ALL FROM THE FULL SPEECH BECAUSE WE HAVE A LOT OF EXCITING IMPORTANT BUSINESS TO GET TO THIS MORNING BUT I WILL LIKE TO TOUCH ON THE THEME OF MY REMARKS. THE ENERGY GRID OF THE FUTURE. AS WE GO THROUGH THE THIS TRANSFORMATIVE PERIOD FOR THE ENERGY SECTOR WE HAVE TO ASK OURSELVES TWO MAIN KES: NUMBER ONE, WHAT WILL THE GRID OF THE FUTURE LOOK LIKE? AND NUMBER TWO, WHAT ROLES SHOULD THE GOVERNMENT, INDUSTRY AND CONSUMERS PLAY IN BRINGING ABOUT THAT GRID OF THE FUTURE. HERE AT THE COMMISSION, MY COLLEAGUES AND I ARE FOCUSED ON OUR RESPONSIBILITY TO FACILITATE A SMOOTH ENERGY TRANSITION ONE THAT ALLOWS FOR THE INTEGRATION OF NEW TECHNOLOGIES LIKE RENEWABLES, ENERGY STORAGE AND DISTRIBUTED ENERGY RESOURCES WHILE ALSO INSURING THE GRID REMAINS RELIABLE AND RESILIENT IN THE FACE OF EXISTING AND EVOLVING THREATS. IN MY VIEW THE COMMISSION HAS A ONCE IN A GENERATION OPPORTUNITY TO CREATE THE REGULATORY ECOSYSTEM THAT ENABLE THIS SYSTEM TO FLOURISH. I'M EXCITED ABOUT WHAT THE FUTURE HOLDS BUT I'M ALSO COGNIZANT OF THE CHALLENGES THAT LAY AHEAD OF US, THAT'S WHY I THINK CONVERSATIONS LIKE THOSE FACILITATEDAD CERO WEEK ARE SO CRUCIAL. NOW BEFORE MOVING ON, THERE'S ONE OTHER SIGNIFICANT HIGHLIGHT FROM CERO WEEK THAT I WOULD LIKE TO MENTION THAT IS OUR ENGAGEMENT WITH OUR COUNTERPARTS FROM INDIA. FERC HAS BEEN WORKING WITH OUR GOVERNMENT PARTNERS AT THE STATE DEPARTMENT AND DEPARTMENT OF ENERGY TO BUILD UPON OUR RELATIONSHIP WITH THE INDIAN GOVERNMENT, SPECIFICALLY AS THEY LOOK TO BUILD OUT THEIR ENERGY INFRASTRUCTURE. I'M PROUD TO SHARE THAT I WAS ABLE TO ON BEHALF OF THE COMMISSION SIGN A MEMORANDUM OF UNDERSTANDING WITH INDQUA'S PATROLIUM AND NATURAL REGULATORY GAS BOARD OR PRGMB, THIS M. O. U. HAD BEEN IN THE WORKS FOR MORE THAN A YEAR AND HELPED FACILITATE AN EXCHANGE OF INFORMATION BETWEEN EXPERTISE BETWEEN OUR TWO AGENCIES, WE WILL CONSULT WITH EACH OTHER ON ISSUES SUCH AS DEVELOPING COMPETITIVE MARKETS IN THE OIL AND NATURAL GAS SECTORS, PROMOTING INVESTMENT IN THE SECTOR, AND PROTECTING CONSUMER INTERESTS. A LOT OF HARD WORK HAS GONE INTO THESE EFFORTS, AND FOR THAT, I WOULD LIKE TO SAY A BIG THANK YOU TO ALL THOSE WHO HELPED MAKE IT POSSIBLE. THAT INCLUDES OUR STAFF HERE AT THE COMMISSION INCLUDING FOLKS FROM THE OFFICE OF ENERGY POLICY AND INNOVATION, THE OFFICE OF ENFORCEMENT, THE OFFICE OF ADMINISTRATIVE LITIGATION, AND THE OFFICE OF EXTERNAL AFFAIRS. IT ALSO INCLUDES OUR COUNTERPARTINGS AT THE PNGRB AND OUR COLLEAGUES AT STATE AND D. O. E. KOOH WAS STATIONED STATE SIDE AND IN INDIA. FINALLY I HAVE TO ACKNOWLEDGE ANOTHER GROUP THAT'S BEEN INTEGRAL TO STRENGTHENING OUR RELATIONSHIP WITH INDIAN ENERGY OFFICIALS AND AS THE U.S. INDIA BUSINESS COUNCIL. THE U.S. IBC HOSTED A ROUND TABLE DISCUSSION WITH THE NUMBER OF SENIOR INDIAN OFFICIALS INCLUDING JOINT SECRETARY CUTTE, OF INDIA PETROLEUM AND NATURAL GAS AS WELL AS OTHER OFFICIALS FROM BOTH THE PUBLIC AND PRIVATE SECTORS OF THE UNITED STATES AND INDIA. HAVING THE OPPORTUNITY TO SIT DOWN WITH THE STAKEHOLDERS AND SPEAK WITH THEM ABOUT THE IMPORTANCE OF THE UNITED STATES RELATIONSHIP WITH INDIA WAS A PRIVILEGE. I LOOK FORWARD TO CONTINUING THAT DIALOGUE AND HOPE THAT OUR WORK WITH PNGRB FACILITATED BY THE IN M. O. U. WE SIGNED LAST WEEK WILL BE A PART OF THAT CONVERSATION. WITH THAT I WILL CONCLUDE MY REMARKS AND TURN BACK TO MY COLLEAGUES FOR ANY ADDITIONAL OPENING STATEMENTS OR ANNOUNCEMENTS THEY MAY HAVE.

THANK YOU MR. CHAIRMAN, I WANT TO START BY CONGRATULATING [INDISCERNIBLE] WHO I WORKED IN WITH IN DIFFERENT CAPACITIES FOR MANY YEARS AND I'M GLAD THEY MADE IT OFFICIAL AND I'M HAPPY FOR OPI. I WANT TO CONGRATULATE LINDSAY IN THE FRONT ROW AND JEN, LOOK FORWARD TO WORKING WITH YOU IN YOUR NEW ROLES. JEN EVEN BEFORE NEAL READ YOUR LITANY, I COULD TELL YOU WERE SMART BECAUSE HAVE YOU THE CRITICAL BEHIND THE TPHRAOG SEAT THAT EVERYONE WANTS AT OPEN MEETINGS. [LAUGHTER] OKAY. I WANT TO COMMENT--I HAVE A COUPLE SUBSTANTIVE THINGS I WANT TO START BY COMMENTING ON ON THIS MORNING'S AGENDA THAT THE CHAIRMAN COMMENTED OF ON WHICH WAS ESIX, THE LOUISVILLE GAS AND ELECTRIC KENTUCKY APPLICATION TO REMOVE AN ANTIPANCAKING MITIGATION MEASURE FROM THEIR EARLIER MERGER AND THEIR SUBSEQUENT WITHDRAWAL FROM MISO. I'M DIFFERING FROM MY COLLEAGUES ON THIS ONE BECAUSE I BELIEVE THE RATE D PANCAKING MITIGATION THAT WAS IMPOSED ON LG& E KU ON THEIR DECISION TO WITHDRAW IS STILL NEEDED TO PROTECT CUSTOMERS. IN MY VIEW, THE COMPANIES HAVEN'T SHOWN THERE ARE SUFFICIENT NUMBER OF COMPETITIVE SUPPLIERS TO MEET THE NEEDS OF THE KENTUCKY MUNICIPAL CUSTOMERS. SIMPLY PUT, I DON'T THINK WE CAN RELYOT RESULTS OF SOLICITATIONS THAT WERE CONDUCTED WITH THE DEPANCAKING MECHANISM IN PLACE AS SUFFICIENT EVIDENCE OF WHAT WOULD HAPPEN WITHOUT THE DEPANCAKING MECHANISM IN PLACE. I WOULD INSTEAD HAVE SET THE MATTER FOR HEARING TO DEVELOP A RECORD ON COMPETITIVE AVAILABLE TO SERVE THE KENTUCKY CUSTOMERS FOR THE DEPANCAKING MITIGATION. SO WITHOUT FURTHER RECORD DEVELOPMENT, I WAS CONCERNED WE MIGHT CONSTRAIN THEIR GENERATION SUPPLY OPTIONS. ON A LIGHTER NOTE, FOR THE LAST COUPLE WEEKS IN MY OFFICE WE'VE BEEN REFERRING TO THIS CASE AS KENTUCKY PANCAKES, AND WHILE PEOPLE TALK ABOUT HOW THE SAUSAGE GETS MADE, THIS CASE SHOWS HOW THE PANCAKES GET MADE. I DO NOT BELIEVE LG& E KU SHOULD BE ABLE TO FORCE FEED A SHORT STACK OF PANCAKES TO THEIR MUNICIPAL CUSTOMERS AND IF YOU WOULD LIKE TO SEE MORE BAD PANCAKE PUNS PLEASE REFER TO MY DISSENT, WE HAD FUN WITH THAT. [LAUGHTER] OKAY, FINALLY IN LIGHT OF ALL THE ATTENTION THAT HAS CAN AM WITH OUR RECENT ORDER APPROVING L& G EXPORT FACILITY IN THE LAST FEW WEEKS I WANTED TO SAY A FEW WORDS ABOUT THE TOPIC OF OUR L& G CONSIDERATION OF L& G AND PIPELINE PROJECT. IN MY RECENT CONCURRENCE IN THE CALCASHOU PATH, AND EXPORTER I HIGHLIGHTED TWO ISSUES TO HOW WE CONSIDER CLIMATE IMPACT AS PART OF OUR IMPACT OF L& G PROJECTS. THE DIRECT EMATIONS FROM THE PROJECT ITSELF WHICH WERE DISCUSSED IN THE COMMISSION ORDER AND THE CUMULATIVE, THE HOW TO INCORPORATE THOSE DIRECT CLIMATE IMPACTS AND OUR DO YOU MEANULATIVE IMPACT ANALYSIS WHICH I DISCUSSED IN MY CONCURRENCE AND I WON'T REHASH THOSE ISSUES OR MY CONCURRENCE HERE BUT I WANT TO SHARE A COUPLE BROADER THOUGHTS ON HOW WE CONSIDER CLIMATE IMPACTS IN OUR WORK UNDER THE NATURAL GAS ACT AND FRANKLY WHY THIS IS SUCH A HARD PART OF OUR WORK RIGHT NOW. THE DEBATE ABOUT CUMULATIVE IMPACT HIGHLIGHTS A LARGER CONCERN THAT I'VE HAD ABOUT HOW THE COMMISSION HANDLES CLIMATE IMPACTS. I REALIZED AND I'VE BEEN TROUBLED THAT THE COMMISSION WHICH I THINK ARE STAFFED AS A WONDERFUL JOB ON THE ENVIRONMENTAL IMPACT STATEMENTS IN GENTLEMEN BUT WE HAVE BEEN TREATING CLIMATE IMPACT DIFFERENTLY THAN ALL THE OTHER ENVIRONMENTAL IMPACTS THAT WE LOOK AT IN OUR ENVIRONMENTAL REVIEW. COMMISSION STAFF HAS DEVELOPED FRAMEWORKS FOR GRAPPLING WITH EVERY OTHER IDENTIFIABLE AND MEASURABLE ENVIRONMENTAL IMPACT, THAT'S WHY THE THINGS ARE THIS THICK. WE DIDN'T KNOW HOW TO QUANTIFY, MITIGATE CONSIDER IMPACTS OF LAND, WATER, SPECIES, WE MAKE CALLS ON WHETHER IMPACTS TO WETLANDS OR MUSKS, H*F-A SPECIFIC SPECIES OF MUSCLES ARE SIGNIFICANT. I SAID MANY TIMES I NEVER KNEW THERE WERE SO MANY SPECIES OF MUSSELS UNTIL I LEARNED ABOUT IT FROM THE COMMISSION. BUT WE DON'T DO THAT FOR CLIMATE CHANGE IMPACT, INSTEAD WE SAY WE CAN'T FIGURE OUT HOW TO DO IT AND THAT'S THEINE WE DON'T DO MOREY MEANINGFUL ANALYSIS IN OUR ORDERS. I DON'T BELIEVE THAT APPROACH WILL BE SUSTAINABLE IN THE LONG-TERM. IN RECEIPT YEARS WE'VE SEEN AN INCREASING NUMBER OF POOR DECISIONS THAT FEDERAL AGENCIES INCLUDING FERC SHOULD BE DOING MORE IN OUR ENVIRONMENTAL REVIEW OF PROJECTS AND OTHER FEDERAL ACTIONS TO CONSIDER CLIMATE IMPACT. THIS HAS BEEN EFKEPT IN OPINIONS OF APPEAL OF OUR OWN CASES LIKE THE D. C. CIRCUIT DECISION IN THE SIERRA CLUB CASE ON STABLE TRAIL AS WELL AS RECENT PROCUREIUM DECISIONS ON THE MVP AND THOSE OPINIONS HAVE BEEN UNDERSCORING THAT WE SHOULD BE QUANTIFYING AND CONSIDERING GHG EMISSIONS AS PART OF OUR CLIMATE REVIEW, AS PART OF OUR ENVIRONMENTAL REVIEW, ON TUESDAY, IN A FERC CASE, BUT WITH RESPECT TO THE DEPARTMENT OF INTERIOR, THE D. C. CIRCUIT FOR THE DISTRICT OF COLUMBIA ISSUED A DECISION IN WILDER GUARDIANS VERSUS ZINKI, THAT DISCUSSING MANY OF THE SAME CLIMATE ARGUMENTS THAT HAVE BEEN SHOWING UP IN OUR GAS WORK HERE AT THE COMMISSION. THE CASE CONCERNED THE ADEQUACY OF THE BOM'S CONSIDERATION OF CLIMATE IMPACT ASSOCIATED WITH GAS AND OIL LEASES IN WYOMING AND THE COURT'S OPINION CONCLUDED THAT THE BLM FAILED TO LOOK AT GHG EMISSIONS AND REMANDED IF FOR BOTH INDIRECT AND CUMULATIVE IMPACTS. I THINK THE CRITICISM HAS A LOT OF POTENTIAL PARALLELS WITH OUR OWN WORK AND I THINK WE WILL WOULD BE WELL SERVED BY GETTING OUT IN FRONT OF THIS ISSUE AND TRYING TO ADDRESS IT PROACTIVELY RATHER THAN WEIGHTING FOR COURTS TO TELL US TO. OBVIOUSLY WE'VE STRUGGLED WITH AND I STRUGGLED WITH GH ISSUES IN OUR PIPELINE CASES BUT I FOUND IT EVEN HARDER IN OUR L& G DOCKET SINCE WE'VE BEEN TAKING ON THESE ISSUES OVER THE LAST COUPLE OF YEARS IN PIPELINE CASES AND NOW HAVING TO TURN RECEIPTLY TO L& G CASES. THAT'S BECAUSE I THINK THE KEY DRIVER FOR ME IS BECAUSE OF THE AUTHORITY OVER L& G PROJECTS UNLIKE A DOMESTIC PIPELINE WHERE WE DO THE WHOLE PIPELINE AND CAN LOOK AT THE NEED BECAUSE WE HAVE RECORD EVIDENCE OF THE END USE, THE AUTHORITY OVER L& G EXPORT PROJECTS IS BIFURCATED BETWEEN FERC AND THE D. O. E., SO THE D. O. E. HAS AUTHORITY OVER THE EXPORT OF NATURAL GAS AS A COMMODITY INCLUDING RESPONSIBILITY UNDER THE FREE PORT CASE WHETHER THE GAS IS IN THE PUBLIC INTEREST OR ANY CONSIDERATION OF THE DOWN STREAM ENVIRONMENTAL IMPACT THAT'S IN THE DOMAIN OF D. O. E. FERC HAS TO LOOK THEA THE FACILITY TO DECIDE IF IT'S CONSISTENT WITH THE PUBLIC INTEREST, THE CLIMATE AND CAME FROM WHERE THE GAS IS GOING, THAT'S ALL IN D. O. E. AEFPLT DOMAIN BUT THE LIQUID FACTION FACILITIES ARE THEMSELVES HAVE SIGNIFICANT, SOMETIMES QUITE SIGNIFICANT DIRECT GHG EMISSIONS OF THE FACTION, THAT'S PART OF OUR REVIEW, AND DECIDING IF IT'S IN THE PUBLIC INTEREST, IT'S HARD TO DO THE WEIGHING IF WE'RE ONLY IN CHARGE OF THE IMPACT OF SOMEONE ELSE IS IN CHARGE OF THE BENEFITS, I THINK WE COULD BE WELL SERVED BY LOOKING AT THE LIFE CYCLE OF GHG EXPORT AND WHAT THE AGGREGATE CLIMATE IMPACTS ARE IN 2014, THE THEN DEPARTMENT OF ENERGY UNDER SECRETARY MONI, TRIED TO DO THAT, THEY DID AN ANALYSIS OF THE WHOLE LIFE CYCLE GHG EMISSIONS STARTING FROM THE EXTRACTION, THE LIQUID FACTION, THE TRANSPORTATION AND DOWN STREAM USE AND COMPARED TO TO WHAT OTHER FUELS MIGHT HAVE BEEN USED DOWN STREAM COMPARED FAVORABLY TO OTHER FUELS USED DOWN STREAM IF IT WASN'T EXPORTED, THAT WAS FOR THE 50 WAVE OF L& G EXPORTS. I THINK IT WOULD BE EXCELLENT IF D. O. E., IT'S NOT SOMETHING WE DO BECAUSE WE DON'T HAVE THE WHOLE VALUE CHAIN COULD TAKE A FRESH LOOK AT THE CLIMATE IMPACT OF PROPOSED EXPORT PROJECTS AND LOOK APPROXIMATE MORE GENERALLY AT WHAT L, AND G EXPORT IS DOING TO THE CLIMATE BEYOND JUST THE PIECE THAT WE'RE LOOKING AT. I DON'T HAVE THE AUTHORITY TO MAKE THAT HAPPEN, IN THE MEAN TIME I HAVE TO DEAL WITH THE APPLICATIONS OF MY JOB, AND I WILL CONTINUE TO LOOK AT THEM CASE BY CASE AS CAREFULLY AS POSSIBLE BASED ON RECORDS BEFORE US AND CONTINUE TO CONSIDER THE ISSUES AS THEY ARRIVE IN THE INDIVIDUAL PROCEEDINGS AND WITH THAT I WOULD HAND OVER THE MIC. , THEY THINK YOU CHAIRMAN ACCIDENT I WANT TO CONGRATULATE THOSE FOR OUR FORMER ROLE, SHE'S BEEN VERY HELPFUL TO ME THAT I'VE BEEN HERE AT COMMISSION AND HER AND HER TEAM ARE EXCELLENT AND THEY DEAL WITH WEEDY ISSUES AND VERY IMPORTANT ISSUES AND I APPRECIATE ALL YOU DO FOR US AND LINDSAY, AGAIN CONGRATULATIONS AND LOOK FORWARD TO, WOOING WITH YOU IN YOUR NEW ROLE AND JEN AS WELL, I'VE ONLY MET JEYESTERDAY BUT WE HAD A GREAT TALK ABOUT INTERNATIONAL ADOPTION WHICH IS A CAUSE OF GREAT INTEREST TO ME AND ALL THE GREAT WORK SHE'S DONE AND I APPRECIATE IT AND LOOK FORWARD TO WORKING WITH YOU AS L. I WANTED TO PICK UP ACTUALLY WHERE COMMISSIONER LAFLEUR LEFT OFF BECAUSE--

WE DIDN'T COORDINATE NWE DID NOT. [LAUGHTER]

BUT AFTER THE LAST MEETING THE COMMISSION ISSUED ITS ORDER APPROVING THE L& G FACILITY AND THE ORDER WAS MET WITH A LOT OF FANFARE AND GREET AS IF IT WAS A MAINLIOR BREAK THROUGH THAT WOULD CLEAR THE WAY FOR US TO APPROVE ADDITIONAL FACILITIES. OF COURSE, WE DON'T PREJUDGE ANYTHING BUT THAT'S THE WAY IT WAS MET I THINK IN THE PUBLIC AND CERTAINLY IN THE PRESS. I DESCENDED FROM THAT ORDER BECAUSE NO MATTER WHAT THEY SAY, THE MAJORITY AGAIN REFUSED TO CONSIDER THE IMPACT AND PROJECT WILL HAVE ON CLIMATE CHANGE. I WANT TO TAKE A MINUTE TO EXPLAIN WHY THIS BREAK THROUGH WAS ANYTHING BUT A PRAYING BREAK THROUGH. AT L, AND G PROCEEDINGS,--IT'S NOT ENOUGH FOR FOR US TO ACKNOWLEDGE THAT THE DECISION WILL EFFECT THE ENVIRONMENT, RATHER THE COMMISSION MUST UNDER THE LAW CONSIDER WHETHER THE IMPACT WILL BE SIGNIFICANT. THAT ANALYSISSICISMLY WASN'T DONE IN THIS CASE. I WANT TO TAKE A MINUTE TO DISCUSS WHAT THE COMMISSION DID AND DIDN'T DO IN THIS PARTICULAR PROCEEDING. FIRST THE ORDER DID FIND THAT THE PROJECT COULD PRODUCE 4 MILLION-TONS OF GREENHOUSE GAS EMISSIONS FROM DIRECT OPERATIONS. BUT, THE MAJORITY REFUSE TO EXAMINE THE IMPACT OF THOSE GAS EMISSIONS WILL HAVE ON CLIMATE CHANGE, NOW WE COME TO THE KEY POINT, THE COMMISSION AFTER TAKING GREENHOUSE GASES OUT OF THE EQUATION COMPLETELY, THEN FOUND THAT THE PROJECT ENVIRONMENTAL IMPACT WILL NONAPOPTOTIC THE BE SIGNIFICANT AND AS A RESULT THE PROJECTS IN THE PUBLIC INTEREST. THINK ABOUT THAT. HOW CAN THE COMMISSION DETERMINE THAT A PROGGENT WILL NONAPOPTOTIC THE HAVE A SIGNIFICANT ENVIRONMENTAL IMPACT, REFUSE TO EXAMINE WHETHER THE PROJECT WILL HAVE A SIGNIFICANT IMPACT ON THE EXCENTIAL IMPACT THAT IT POSES TO THE CLIMATE? OTHER THAN YOUR THE FACT THAT YOUR HUSBAND WAS SHOT AND KILLED MRS. LINCOLN, HOW WAS THE PLAY? WE WOULD NEVER DO THAT IN ANY OTHER CONTEXT, BUT IF WE KNEW A PROJECT WOULD MAKE PEOPLE SICK BUT THERE WAS A DISAGREEMENT HOW SEVERELY THEY WOULD GET SICK, WE SHOULD DETERMINE THE PROJECT IS SAFE EVEN THOUGH WE KNOW SOME PEOPLE WILL MAKE IT SICK AND POTENTIALLY CAUSE PEOPLE TO DIE. SOME MIGHT SAY WELL COMMISSIONER GLICK, HOW CAN YOU SAY THE COMMISSION DIDN'T TAKE CLIMATE CHANGE INTO,A COUNT, ISN'T IT RESPONSIBLE FOR 4 MILLION-TONS OF GREENHOUSE GAS EMISSIONS EACH YEAR? YEAH BUT THAT JUST DODGES THE QUESTION, YES THE COMMISSION CALCULATES THE GREENHOUSE GAS EMISSIONS AND YES THE ENVIRONMENTAL IMPACT POINTS ON UTR THAT IT WILL HAVE DRAMATIC EFFECTS IN THE SOUTHEAST WHERE THE PROJECT WILL BE LOCATED BUT THE MAJORITY REFUSES TO CONNECT THOSE EMISSIONS TO CLIMATE CHANGE WHICH IS WHAT WE'RE REQUIRED TO DO UNDER THE LAW, SO WHEN WE'RE TALKING ABOUT THE ORDER LET'S NOT SAY THAT THE COMMISSION CONSIDERED THE IMPACT OF THE PROJECTS GREENHOUSE GAS COMMISSIONS ON CLIMATE CHANGE. IT SIMPLY ISN'T TRUE. I ALSO WANT TO POINT OUT THAT FINDING THE ANALOGY PROJECT WILL ADMIT GREENHOUSE GAS EACH YEAR IS NOT THE END OF THE STORY, A COMMISSIONER COULD FIND THAT LEVELS ARE NOT SIGNIFICANT OR IF THEY ARE SIGNIFICANT THE PUBLIC INTEREST WARRANTS APPROVAL OF THE PROJECT. ALL YOU 92 ED TO DO IS LOOK AT COMMISSIONER LAFLEUR'S CONCURRENCE WHICH SHE MENTIONED, TO HER CREDIT SHE ENGAME INDEED THIS ANALYSIS. SHE SAID IT HAS PROJECTS GASES APPEAR TO BE SIGNIFICANT. INCIDENTALLY IF YOU HAVEN'T DONE SO, I STRONGLY RECK LEND YOU READ COMMISSIONER LAFLEUR'S CONCURRENCE. IT DOES A GREAT JOB IN THIS CASE. I DON'T WANT TO HEAR THAT ASSESSING SIGNIFICANCE IS TOO HARD. THE COMMISSION IT CALLED UPON TO DO IT ALL THE TIME IN OTHER CONTEXT AND WITH LESS INFORMATION THAN WE HAVE IN THIS PARTICULAR PROCEEDING. IT'S ALSO IMPORTANT TO RECOGNIZE THAT THE DEVELOPER HAS THE OPPORTUNITY TO MITIGATE IMPACT VOLUNTARILY OR PURSUE APT TO THE COMMISSION ORDER, ALMOST EVERY ORDER WE ISSUE,A PROVING A PIPELINE OR L& G FACILITY LISTS MITIGATION THE PROG ECTOMYOSIN DEVELOPER UNDERTAKES TO LIMIT ADVERSE IMPACTS FROM THE PROJECT. FOR INSTANCE THE COMMISSION RECENTLY CIRCULATED A FINAL IMPACT STATEMENT SOCIALITY WIDE THE PORT ARTHUR L& G FACILITY WHERE IT'S PROPOSING TO CREATE MORE THAN 1200-ACRES OF NEW WET LANDS TO OFFSET THE WETLANDS IF THE PROJECT IS ABOUT BUILT. THERE'S NOTHING FROM DEVELOPING THE OFFSETTING TKPRAOEPB HOUSE GAS EMISSIONS WITH AN L& G FACILITY. IT WOULD NOT BE HARD TO DO SO AND I SUSPECT THE PRICE WILL BA I TINY FRACTION OF THE TOTAL COST OF THE PROJECT. IN FACT, I RECENTLY MET WITH FREE PORT L, AND G WHICH SUBSTANTIALLY REDUCED GREENHOUSE GAS EMISSIONS WHICH FER C APPROVED SEVERAL YEARS AGO BY DEVELOPING MOTOR DRIVES. THIS ISN'T ROCKET SCIENCE. SO BEFORE WE PAT OURSELVES ON THE BACK AND GIVE OURSELVES THE GOOD GOVERNMENT AWARD, WE NEED TO DO OUR JOB UNDER THE LAW, WHICH IN THIS CASE MEANS NONAPOPTOTIC THE IGNORING THE IMPACT IT WILL HAVE ON CLIMBATE CHANGE. IT WAS TUESDAY'S DECISION THAT THE U.S. DISTRICT COURT FROM THE DISTRICT OF COLUMBIA IN WILDLIFE GUARDIANS VERSUS ZINKI, WE ACTUALLY ENDED UP ON THE FRONT PAGE OF THE TODAY'S WASHINGTON POST. THE REASON WHY IT'S IMPORTANT IS NOT BECAUSE WE ARE SUPPOSED TO CONSIDER HOW IMPORTANT CLIMATE CHANGE IS TO OUR SOCIETY, WHAT'S IMPORTANT ABOUT THAT PARTICULAR DECISION IS WHAT WE'VE BEEN SAYING ALL ALONG THAT WE'RE CREATING LITIGATION BY PUTTING OUR HEAD IN THE SAND AND IGNORING CLIMATE CHANGE WHILE MAKING OUR DECISIONS AND BECAUSE OF THAT, ALL WE'RE GOING TO DO AT SOME POINT, OF COURSE WE WILL SEND BACK ORDERS, IT WILL TAKE YEARS TO GO BACK AND REDO THE ORDERS, AND TAKE MANY YEARS AND MANY BILLIONS OF DOLLARS FOR THE DEVELOPER BEFORE THEY GET TO MOVE FORWARD WITH THEIR PROJECT. SO I THINK IT'S IN EVERYONE'S INTEREST THAT WE CONSIDER THIS IN AN UPFRONT BASIS SO I URGE US TO RECONSIDER THE WAY WE'RE APPROACHING THESE THINGS -FRPLT THANK YOU, MR. CHAIRMAN.

I TOO WANT TO CONGRATULATE JEN AND LINDSAY FOR JOINING THE TEAM AND YOU'RE JOINING, YOU KNOW SOME HAVE ALREADY BEEN HERE AND ARE MOVING, SOME JUST JOINED BUT THIS IS A GREAT PLACE TO WORK AND MANY GREAT PEOPLE AND A GREAT OPPORTUNITY AND WE ALL COULDN'T DO THE WORK WE DO WITHOUT ALL OF YOU AND EVERYBODY ELSE WHO'S IN THIS BUILDING SO WE'RE VERY GRATEFUL THAT YOU'RE WILLING TO SERVE HERE. I WAS NOT GOING TO COMMENT ON THE L& G FACILITIES BUT I THINK IT'S APPROPRIATE AT THIS TIME TO DO SO. I THINK IT'S A DISAPPOINTING THAT IN THIS TOWN OFTEN IF THERE'S A DISAGREEMENT ABOUT HOW SOMETHING SHOULD BE DONE OR WHAT THE CONDITION KHRAOUGZS ARE THAT THE--SOMEWHAT SOME WILL SAY THAT IT WASN'T DONE. THAT THEY'RE IGNORING SOMETHING. I WOULD URGE YOU TO READ THE COMMISSION AND THAT ISSUES WERE ADDRESSED, THEY WERE SERIOUSLY ADDRESSED, IT WAS A HARD LOOK, REASONABLE PEOPLE CAN DISAGREE AND THAT'S WHY YOU HAVE NUMBERS OF COMMISSION. BUT I THINK THERE'S A BROADER ISSUE HERE AND IT'S--IT'S SOMETHING I THINK THAT'S IMPORTANT TO SAY BECAUSE I THINK THERE'S A COMMON RECOGNITION THAT COMMISSIONER LAFLEUR HAS BEEN A PERSON WHO LOOKS HARD AT ISSUES AND TAKES THEM SERIOUSLY. I KNOW THAT THE CHAIRMAN DOES TOO, I KNOW COMMISSION GLICK DOES TOO AND IS PASSIONATE ABOUT IT BUT THE ONE THING THAT THIS ORDER DID, WE HAVE TO LOOK AT EACH ORDER SEPARATELY BUT WE WERE ABLE TO SHOW, AT LEAST HERE, THAT WASHINGTON CAN WORK. EVERYBODY'S CONVINCED THAT WASHINGTON NOW, EVERYBODY RUNS TO THEIR CORNER THAT YOU RUN TO YOUR BASE, BUT HERE WE DID SOMETHING DIFFERENT. WE SHOWED THAT WE COULD COME TOGETHER, COMPROMISE AND COME TO A WAY FORWARD ON SOMETHING THAT'S IMPORTANT TO THE COUNTRY THAT FACILITATES OUR OBLIGATION UNDER THE NATURAL GAS ACT AND [INDISCERNIBLE] AND SOMETHING I'M PROUD OF AND GRATEFUL FOR THE OPPORTUNITY TO WORK WITH MY FELLOW COMMISSIONERS, ALL FOUR OF US EVEN WHEN WE DISAGREE BECAUSE I THINK IT'S SOMETHING THAT IN OUR SMALL PART ESPECIALLY WITH GREAT FORESIGHT AND REALLY ENJOYED WORKING THROUGH THE ISSUES WITH ALL OF MY COMMISSIONER FRIENDS, MAYBE THERE'S LITTLE HOPE, MAYBE WE CAN MAKE A LITTLE BIT OF A DIFFERENCE AND PROVE TO THE AMERICAN PEOPLE THAT YOU KNOW WHAT? WASHINGTON CAN WORK IF WE COMPROMISE, WE COME TOGETHER, WE LISTEN, WE CAN GET THINGS DONE AND THAT'S MY HOPE. THANK YOU.

THANK YOU COMMISSIONER MC NAMEE, MADAM SECRETARY WE ARE READY TO GO TO THE CONSENT AJUDGEANDY.

THANK YOU MR. CHAIRMAN, SINCE THE ISSUANCE OF THE SUNSHINE ACT NOTICE ON MARCH 14TH, 2019, ITEM E15 HAS BEEN STRUCK FROM THIS MORNING'S AGENDA, YOUR CONSENT AGENDA IS AS FOLLOWS: ELECTRIC ITEMS, EFOUR, U-FIVE, E-SIX, E-SEVEN, E-EIGHT, E-NINE, E-TEN, E-11, E-12, E-13, E-14, E-16, E-17, E-18, E-21, AND E22. EMBASSY ITEMS, G-ONE, G-TWO, G-THREE. AS TO E-NINE AND G-ONE, COMMISSIONER MC NAMEE IS NOT PARTICIPATING. AS TO E-SIX, COMMISSIONER LAFLEUR, IS DISSENTING WITH A SEPARATE STATEMENT. WE ARE NOW READY TO TAKE A VOTE ON THIS MORNING'S CONSENT AGENDA THE VOTE BEGINS WITH COMMISSIONER MC NAMEE.

I AFREE. FOR ALL VOTES EXCEPT FOR E-NINE AND G-ONE WHICH I'M NOT.

COMMISSIONER GLICK?

AYE.

COMMISSIONER LAFLEUR.

NOTING MY DISSENT IN E-SIX, I VOTE AYE? , AND CHAIRMAN CHATTERJEE.

AYE,.

WE ARE NOW READY TO MOVE TO THE DISCUSSION AND PRESENTATION PORTION, THE FIRST AOEUBGS TEMAND ONLY ITEM THIS MORNING IS A JOINT PRESENTATION ON ITEMS E-ONE AND E-TWO, TWO DRAFT NOTICES OF INQUIRY, THE ELECTRIC TRANSMISSION INCENTIVES POLICY AND THE POLICY FOR DETERMINING THE RETURN ON EQUITY, WE ARE DAVID AND JEREMY, AND THEY ARE ACCOMPANY BY THE OFFICE OF POLICY AND INNOVATION AND ADAM POLLOCK FOR THE OFFICE OF INNOVATION AND MARKET REGULATION.

GOOD MORNING MR. CHAIRMAN AND COMMISSIONERS. ITEM E-ONE IS AIAN DRAFT NOTICE OF INQUIRY THAT SEES COMMENT ON THE SCOPE AND IMPLEMENTATION OF THE COMMISSION'S ELECTRIC TRANSMISSION INCENTIVE REGULATION AND POLICY PURSUANT TO SECTION 219 OF THE FEDERAL POWER ACT. AS PART OF THE ENERGY POLICY ACT OF 2005, CONGRESS ENACTED SESSION 219 WHICH DIRECTED THE COMMISSION TO USE TRANSMISSION INCENTIVE TO HELP INSURE RELIABILITY AND REDUCE THE COST OF DELIVERED POWER BY REDUCING TRANSMISSION CONJESTION. NEARLY 13 YEARS HAVE PASSED SINCE THE COMMISSION PROMULGATED RULES FOR THE DIRECTIVE BY ISSUING ORDER NUMBERS 679 AND 679A AND NEARLY SEVEN YEARS HAVE PASSED SINCE THE COMMISSION PROVIDED GUIDANCE UPON ASPECTS OF THOSE RULES IN A 2012 POLICY STATEMENT. THE DRAFT REQUESTS STAKEHOLDER COMMENT ON A WIDE RANGE OF ISSUES RELATED TO THE COMMISSION'S INCENTIVE POLICY. FOR INSTANCE, THE DRAFT ASKS WHETHER TRANSMISSION INCENTIVES RATHER THAN BEING BASED ON THE RISKS AND CHALLENGES OF THE IMPOSED TRANSMISSION PROJECT INSTEAD SHOULD BE BASED UPON A PROJECT'S BENEFITS. IT ALSO EXAMINES WHETHER TRANSMISSION INCENTIVES COULD BETTER ENCOURAGE ENHANCEMENTS TO EXISTING FACILITIES AND ASKS HOW EVOLVING TRANSMISSION TECHNOLOGIES COULD BE MORE THOUGHTFULLY CONSIDERED IN THE CONTEXT OF THE COMMISSION'S TRANSMISSION INCENTIVES POLICY. WITH RESPECT TO TRANSMISSION INCENTIVES TO RETURN ON EQUITY OR R. O. E., THE DRAFT EXAMINES REQUIREMENTS FOR THE LEVEL OF AND THE DESIGN OF THESE INCENTIVES AS WELL AS THEIR RELATIONSHIP TO THE CALCULATION OF BASE R. O. E.S. WITH RESPECT TO NONR. O. E. OR REDUCE INCENTIVES THE DRAFT EXAMINES THE DESIGN AND VALUE OF SOME OF THESE INCENTIVES AND WHETHER THERE MAY BE OTHER POTENTIAL RISK REDUCING TRANSMISSION INCENTIVES. THE DRAFT NOI SHOULD APPROACH GRANTING INCENTIVES INCLUDING WHETHER SOME INCENTIVES SHOULD BE GRANTED ON A GENERIC BASIS RATHER THAN THE CURRENT CASE BY CASE APPROACH, WHETHER THERE'S MORE ANALYSIS OF COMBINATIONS OF INCENTIVES AND LEVELS OF ANY ROE ADDERS AND WHETHER ADDITIONAL STRUCTURE AND GUIDANCE REGARDING THE COMMISSION'S APPROACH SHOULD BE ADDED TO THE EVALUATION PROCESS. INITIAL COMMENTS ARE DUE 90 DAYS AND REPLIED COMMENTS ARE DO 120 DAYS AFTER THE DATE OF PUBLICATION IN THE FEDERAL REGISTER. THANK YOU. THIS CONCLUDES MY PRESENTATION. WE WOULD BE HAPPY TO ADDRESS ANY QUESTIONS YOU MAY HAVE AFTER THE R. O. E. AND N. OISM TEAM TRIBES THAT RELATED N. O. I.

ITEM E-TWO IS AN 89 IRY SEEKING STAKEHOLDER VIEWS REGARDING WHETHER OR AND SO HOW THE COMMISSION SHOULD MOTTIFY HOW IT DETERMINES THE RETURN ON EQUITY OR R. O. E. TO BE USE INDEED DESIGNING JURISDICTIONAL RATE CHARGED BY PUBLIC UTILESS AS WELL AS INTERSTATE NATURAL GAS AND OIL PIPELINE. THIS N. OISM FOLLOWS THE D. C. CIRCUIT DECISION IN MAINE VERSES FER CTHE REVERSE AND VACATED OPINION NUMBER 531. IN OPINION 531, THE COMMISSION ADOPTED A TWO-STEP DISCOUNTED CASH FLOW OR DCF APPROACH TO CALCULATE THE BASE ROE FOR ELECTRIC UTILITIES THE COURT HELD AMONG OTHER THINGS THAT THE COMMISSION INADEQUATELY JUSTIFIED ITS DECISION UNDER SECTION 206 OF THE FEDERAL POWER ACT TO SET THE TRANSMISSION OWNERS R. O. E. AT THE MIDPOINT OF THE UPPER HALF OF THE REASONABLENESS PRODUCED BY TWO STEP DCF ANALYSIS, IN THIS PROCEEDING THE COMMISSION SEEKS COMMENT ON POTENTIAL MODIFICATIONS TO ITS APPROACH TO DETERMINING A JUST AND REASONABLE BASE R. O. E. FOR PUBLIC UTILS AS WELL AS INTERSTATE NATURAL GAS AND OIL PIPELINES. ALTHOUGH THE COMMISSION REQUESTS BRIEFING ON SOME OF THE ISSUES, BELOW, IN OTHER PENDING R. O. E. PROCEEDINGS, THIS N. O. I. WILL PROVIDE A BROADER OPPORTUNITY FOR ALL INTERESTED STAKEHOLDERS TO COMMENT ON THE COMMISSION'S R. O. E. POLICY IN LIGHT OF THE DECISION IN THE D. C. CIRCUITS OF MAINE. THE COMMISSION SEEKS TOPICS ON EIGHT GENERAL INQUIRIES, FIRST THE COMMISSION IS ASKING ABOUT THE ROLE OF THE COMMISSION'S BASE R. O. E. AND INVESTMENT DECISION MAKING AND WHAT OBJECTIVE SHOULD GUIDE THE COMMISSION APPROACH. SECOND, WHETHER UNIFORM APPLICATION OF OUR R. O. E. POLICY ACROSS ELECTRIC, INTERSTATE GAS PIPELINE AND OIL PIPELINE INDUSTRIES IS APPROPRIATE. THIRD, THE PERFOPPANCE OF THE DCF MODEL, FOURTH THE COMCISION OF THE PROXY GROUPS. FIFTH, FINANCIAL MODEL CHOICE, SIX, THE MISMATCH BETWEEN MARKET BASED R. O. E. DETERMINATIONS AND BOOK TO VALUE RATE BASE. SEVEN, HOW THE COMMISSION DETERMINES WHETHER AN EXISTING R. O. E. IS UNJUST AND UNREASONABLE UNDER THE FIRST POND OF SECTION 206 AND FINALLY EIGHT, THE MECHANICS AND IMPLEMENTATION OF THE DIFFERENT MODELS. INITIAL COMMENTS ARE DUE 90 DAYS AND REPLY COMMENTS ARE DUE 120 DAYS AFTERLET FEDERAL REGISTER. THANK YOU THIS CONCLUDES OUR PRESENTATION AND WE WOULD BE HAPPY TO ADDRESS ANY QUESTIONS YOU MIGHT HAVE.

THANK YOU DAVID, JEREMY AND THE TEAM FOR THAT EXCELLENT PRESENTATION. AS I MENTIONED EARLIER, THE POLICY WE PUT IN PLACE FOR TRANSMISSION TODAY WILL HAVE A HUGE IMPACT ON SHAPING THE GRID OF TOMORROW. GIVEN THE COMPLEXITY AND STALE OF BUILDING NEW TRANSMISSION PROJECTS, THE DECISIONS MY COLLEAGUES AND I MAKE NOW WILL HAVE IMPACTS FOR DECADES TO COME. WHAT ALL THIS BOILS DOWN TOO IS THE FACT THAT GETTING THESE POLICIES RIGHT WILL BE CRITICAL TO INSURING THAT THE ENERGY REVOLUTION WE'RE CURRENTLY UNDERGOING RESULTS IN MORE RELIABLE SERVICES AND LOWER PRICES FOR CUSTOMERS. TO THAT END THE TWO N. O. I.S WE ARE ISSUING TODAY ARE AN IMPORTANT STEP IN GETTING IT RIGHT. AS I RECOGNIZE INDEED NOVEMBER, THE IMPLICATIONS OF OUR R. O. E. POLICIES ARE SIGNIFICANT AND WIDE SPREAD. SO TODAY'S N. OISM INITIATES A BROADER BRO SEEDING TO,A LOW INTERESTED TAKE HOLDERS TO PROVIDE FEEDBACKOT COMMISSION'S R*FPLT O. E. POLICIES FOR PUBLIC UTILITIES AND WHETHER CHANGES TO THE R. O. E. POLICIES SHOULD BE APPLIED TO INTERSTATE NATURAL GAS AND OIL PIPELINES. IN ADDITION I THINK THE TRANSMISSION INCENTIVE N. O. I. TEES UP THE IDEA OF WHAT KIND OF COMMISSION THEY WANT TO INSENT? IN PARTICULAR, I THINK IT ASKS VERY IMPORTANT QUESTIONS ABOUT WHETHER THE COMMISSION SHOULD BE FOCUSED ON INCENTIVIZING PROJECTS WITH RISKS AND CHALLENGES OR THINKING MORE BROADLY ABOUT THE RELIABILITY AND ECONOMIC BENEFITS THAT TRANSMISSION PROJECTS CAN PROVIDE. I ALSO WANT TO RECOGNIZE THAT ISSUING BOTH OF THOSE N. O. I. SIMULTANEOUS TODAY WILL MEAN A LOT OF HARD WORK FOR FOLKS OUTSIDE OF THIS BUILDING OVER THE IN ACCIDENT SEVERAL MONTHS. BUT AS I MENTIONED EARLY ARE, I BELIEVE WE ARE AT AN INFLECTION POINT OF THE ENERGY OF OUR FUTURE OF TRANSMISSION AND FERC'S TRANSMISSION POLICIES WILL BE KEY TO SHAPING THAT FUTURE. GETTING THOUGHTFUL COMMENTS FROM MEMBERS OF INDUSTRY, ACADEMIA, STATES AND OTHERS WILL BE IMMENSELY HELPFUL AS WE TACKLE THIS CHALLENGE. I HAVE NO QUESTIONS FOR THE TEAM AND I WANT TO THANK YOU ALL FOR YOUR EXCELLENT WORK IN THESE PROCEEDINGS AND WITH THAT I WILL TURN TO MY COLLEAGUES.

THANK YOU. I WOULD ALSO LIKE TO THEY THINK DAVE AND I HAD JEREMY AND EVERYONE ON THE TEAM AT THE TABLE IN THE AUDIENCE, AND AT THE TABLE, INDEED AUDIENCE AND ALL THEIR BOSSES ON THE SIDE OF THE ROOM FOR ALL THE WORK THAT WENT INTO THESE. I THINK BOTH OF THE NOTICES ARE VERY WELL WRITTEN AND COMPREHENSIVE AND I KNOW THAT TOOK A LOT OF WORK. FIRST WITH RESPECT TO THE NOTICE OF INQUIRY ON TRANSMISSION INCENTIVE I VERY MUCH SUPPORT TODAY'S ORDER: I BELIEVE IT'S A GOOD TIME TO TAKE A FRESH LOOK AT OUR INCENTIVES POLICIES TO SEE IF THE FORMS ARE NEEDED TO BETTER ALIGN OUR POLICIES WITH THE GOALS SET FORTH IN SECTION 219 OF THE FEDERAL POWER ACT. AT BOTTOM, SECTION 219 WAS BY ITS VERY TERMS INTENDED TO HELP ATTRACT INVESTMENT IN TRANSMISSION NEEDED TO SEVEN CUSTOMERS AND WE SHOULD BE VIGILANT THAT THE COMMISSION'S POLICY ACCOMPLISH THOSE OBJECTIVES WHILE INSURING JUST AND REASONABLE RATES. AND THERE ARE SEVERAL--SEVERAL OF THE AREAS IN THE--ACTUALLY A LOTIME INTERESTED IN THIS THE NOTICE OF INQUIRY BUT I WANT TO HIGHLIGHT A FEW AREAS. THE FIRST IS I LOOK FORWARD TO COMMENTS ON THE COMMISSION'S APPROACH TO THE TRANS-CO ADDER AND THE RTO PARTICIPATION ADDER BECAUSE BOTH HAVE BEEN CONTROVERSIAL EITHER IN RECEIPT COMMISSION ORDERS OR IN THE CASE OF ARCHY ORDER AND ADDER AND THE NINTH CIRCUIT COURT ORDER AND I THINK IT'S APPROPRIATE THAT WE THINK ABOUT THOSE. IN ADDITION, I LOOK FORWARD TO COMMENTS ON THE INTERPLAY BETWEEN ORDER 1000 AND OUR INCENTIVES POLICY. I BELIEVE THE COMMISSION SHOULD EXPLORE WHETHER OUR INCENTIVES POLICY CAN FURTHER PROMOTE THE GOAL OF ORDER NUMBER 1000 AND THE THINGS WE FOUND ON THE RECORD IN THAT DOCUMENTET. THOSE GOALS INCLUDE ASSURING THAT TRANSMISSION NEEDED TO SERVE CUSTOMERS WHETHER FOR RELIABILITY, ECONOMIC EFFICIENCY, OR DRIVEN BY PUBLIC POLICY, THAT THOSE PROJECTS ARE PLANNED AND CONSTRUCTED AND THAT WE PROMOTE COMPETITION IN TRANSMISSION PLANNING PROCESSES TO INSURE THAT TRANSMISSION THAT'S CONSTRUCTED IS DONE SO EFFECTIVELY AND COST EFFECTIVELY. WHILE THERE'S BEEN CONSIDERABLY TRANSMISSION GROWTH IN THE PAST DECADE AND IN THE PAST MANY YEARS SINCE WE VOTED OUT ORDER NUMBER 1000, I DO BELIEVE THERE'S A CLEAR NEED TO CONSTRUCT MORE TRANSMISSION TO EASE THE INTERCONNECTION OF LOCATION CONSTRAINED RENEWABLES AND I THINK THAT'S EVIDENCE BY THE CHOKING INTERCONNECTION CUES IN SEVERAL OF THE REGIONS SUGGESTING THERE MIGHT BE TRANSMISSION THAT'S NEEDED RATHER THAN JUST HUNDREDS OF INTERCONNECTIONS AND WE HAVE TO MAKE SURE THE PROCESSES SUPPORT THAT. I ALSO NOTE THE RATHER OBVIOUS FACT THAT INTERREGIONAL TRANSMISSION, SOMETHING WE'RE QUITE HAPPY ABOUT IN ORDER NUMBER 1000 HAS BEEN PROVEN TREMENDOUSLY DIFFICULT TO SITE AND CONSTRUCT AND IS BASICALLY HAPPENED TO A VERY SMALL EXTENT AND I'M INTERESTED IN COMMENTS ON WHETHER AND HOW INTERESTING IN OUR INCENTIVE POLICY CAN HELP GET THAT TRANSMISSION BUILT WHERE IT'S NEEDED TO SEVEN CUSTOMERS OR MEET PUBLIC POLICY OBJECTIVES SET FORTH BY THE STATES. FINALLY, I LOOK FORWARD TO COMMENTS ON WHAT CHANGES WE MIGHT NEED TO MAKE TO SUPPORT COMPETITIVE TRANSMISSION PROCESSES, SOMETHING WE TALKED ABOUT IN POLICY CONFERENCES AND OTHERS IN THE PAST. NOW WITH RESPECT TO THE NOTICE OF INQUIRY ON RETURN ON EQUITY, I'M ALSO VOTING FOR TODAY'S ORDER. I DO NOTE THAT THE QUESTIONS WE ASK ARE EXTREMELY DETAILED AND COMPREHENSIVE, AND THIS HAS BEEN A NOTORIOUSLY DIFFICULT AREA OF OUR WORK AROUND WHICH TO DEVELOP A CONSENSUS, AND SUSTAIN IT IN COURT. I STRONGLY ENCOWER CANCER CENTER COMMENTERS TO BE FOCUSED AND CONCISE IN THEIR COMMENTS AND INDICATE WHICH QUESTIONS THEY'RE ANSWERING TO HELP THE COMMISSION MOVE FORWARD IN THE COMPLEX DOCKET AS QUICKLY AS POSSIBLE TO HOPEFULLY IF WE DO SO WE CAN PROVIDE MORE STABILITY AND PREDICT ABILITY TO OUR R. O. E. POLICY. I ALSO HOPE AND I EXPECT THAT THE DOCKETS IN THE ORDER AND THE MISO BRIEFING ORDER THAT ARE CURRENTLY PENDING AND HAVE DOCKAGE DEVELOPMENT WILL HELP PROVIDE THE COMMISSION WITH IMPORTANT INITIAL FEEDBACKOT FOUR METHODOLOGIES THAT WE IDENTIFIED FOR DETERMINING R. O. E. AND THOSE DOCK THEETS AND I OPEN THAT IN THIS N. O. E. WE DON'T START ALL OVER AGAIN BUT WE CAN BUILD ON THOSE KNOWLEDGE DOCUMENTS. I AM CONFIDENT, I ALWAYS SAY THIS BUT I'M SUPER CONFIDENT THIS TIME THAT WE WILL RECEIVE A BROAD RANGE OF COMMENTS ON BOTH OF THESE NOTICES OF INQUIRY. IN LIGHT THEIR BREDTH WE'RE ALLOWING 90 DAYS FOR COMMENT. I WANT TO KNOW THAT THE NOTICES OF INQUIRY STATE THAT THE COMMENTERS NEED NOT ADDRESS EVERY QUESTION ASKED IN FACT, LITTLE KNOWN FACT, WE HAVE ADDED THAT TO EVERY NOTICE OF INQUIREY SINCE 2011 AFTER SUE KELLIE OF A. P. A. BURNED MIDNIGHT OIL BECAUSE SHE THOUGHT SHE HAD TO ANSWER ANY QUESTION ON THE 2011 INQUIRY THAT ANDIE WEINSTEIN WROTE, AND SHE SAID WHETHER OR NOT, YOU'RE SUPPOSED TO ANSWER EVERY QUESTION, SO THANK YOU SUE FOR THAT POLICY CHANGE BAUDS NOW WE ALWAYS SAY JUST GIVE US COMMENTS ON WHAT YOU'RE INTERESTED IN. WE WILL HAVE ENOUGH TO GO THROUGH TO FIGURE THIS OUT. AND THANK YOU OF COURSE TO THE TEAM AND LOOK FORWARD TO WORKING ON THIS.

THANK YOU. DO YOU WANT TO START BY THANKING THE TIME, IT'S NOT EASY TO--WE HAVE FOUR COMMISSIONERS THAT WANT TO ASK A WHOLE BUNCH OF QUESTIONS IN A WHOLE BUNCH OF DIFFERENT WAYS AND YOU WERE ABLE TO TAKE THEM AND PUT THEM TOGETHER IN A CONCISE DOCUMENT WE COULD AGREE ON SO APPRECIATE YOUR HARD WORK AND THANK YOU FOR WORKING WITH MY TEAM AND MAKE HUR THAT THESE N. O. I.S ARE IN GOOD SHAPE. I WANT TO THANK CHAIRMAN CHATTERJEE FOR MOVING FORWARD WITH THIS AND I DON'T WANT TO BE REMISS IN THE COMMISSION TAKING A LOOK IN OW WE CONSIDER THESE R. O. E.S AND I THINK THIS IS THE OUTCOME OF THAT PARTICULAR EFFORT. BOTH OF THESE N. O. I.S REFLECT THE HEALTHY TENSION WITH REGARD TO THE TRAN PICION MISSION POLICIES AND ON THE ONE HAND WE WANT TO INVEST TRANSMISSION AND GREATER RELIABILITY, REDUCED CONGESTION AND ACCESS TO LESS EXTENSIVE GENERATION AND REMOTELY LOCATED RESOURCES ON THE OTHER HAND WOO HAVE THE RESPONSIBILITY UNDER THE FEDERAL POWER TO INSURE THE TRANSMISSION RATE DID NOT EXCEED THE REASONABLE RATE. IN OTHER WORDS WE WANT TO PROVIDE THE RIGHT INVESTMENT ENVIRONMENT FOR COMPANIES SEEKING TO BUILD TRANSMISSION OR APPROVE THEENTIOUS FICIENCY OF THE EXISTING FACILITIES BUT WE DON'T WANT THISEM TO CHARGE EXCESSIVE RATES BUT I SUSPECT THE COMMENTS AND RESPONSES WE RECEIVE FROM THE VARIOUS STAKEHOLDERS WILL BE HELPFUL IN GUIDING THE COMMISSION AS WE ASSESS WHETHER THESE EXISTING APPROACHES TO CALCULATING TRANSMISSION OWNERS, R. O. E. AND GRANTING TRANSMISSION INCENTIVES SHOULD BE MODIFIED. I WANT TO NOTE ONE PARTICULAR ISSUE, I'M REALLY INTERESTED IN SEEING COMMENTS ON OUR INCENTIVE POLICY. AS EVERYONE KNOWS SECTION 219 OF THE FEDERAL POWER ACT AUTHORIZES GRANTING TRANSMISSION OWNERS CERTAIN INCENTIVES BUT IT IS NOT CLEAR TO ME THAT IN SOME CASES THE INCENTIVES WE ARE HANDING OUT ARE INSENTING ANYTHING. IF WE ARE GOING TO DESIGN THE RIGHT APPROACH WE NEED TO BE CERTAIN THE INCENTIVES ARE IN SAYS OR WHETHER THE INVESTMENTS WOULD OCCUR ANYWAY, IN OTHER WORDS WE SH-BT BE HANDING OUT THE FERC CANDY WITHOUT RECEIVING SOMETHING BENEFICIAL IN RETURN. I DO HAVE ONE QUESTION FOR THE STAFF IF YOU DON'T MIND. AS I UNDERSTAND IT. ARE. ON E.S FOR NATURAL GAS PIPELINES RUN HIGHER THAN FOR ELECTRIC TRANSMISSION COMPANIES. CAN YOU COMMENTOT DIFFERENCES IN HOW THE COMMISSION HAS APPROACHED THOSE TWO INDUSTRIES? AND WHETHER THIS N. O. I. CONTEMPLATES ALIGNING THESE METHODOLOGIES ACROSS THE INDUSTRIES.

YES COMMISSIONER. THE R. O. E. N. O. I. ORDER REQUIRES THE APPROPRIATENESS OF ANY POTENTIAL DISCUSSED CHANGES FOR NATURAL GAS PIPELINESSAS WELL AS ELECTRIC ONES. ORDER 531 LARGELY SYNCHRONIZED THE METHODOLOGY USED IN NATURAL GAS AND ELECTRIC UTILITY R. O. E. DETERMINATIONS BY REQUIRING THE USE OF THE TWO STEP DCF METHODOLOGY LONG USED FOR NATURAL GAS PIPELINES FOR ELECTRIC UTILITIES. NONETHELESS, THE CALCULATED RETURN ON EQUITIES CAN DIFFER BASED ON DIFFERENTIALS BASED ON THE PROXY GROUPS AND THE PERCEIVED RISKS OF THOSE COMPANIES. ADDITIONALLY UNLIKE ELECTRIC UTILITIES MOST OF WHOM FEATURE FORMULA RATES WITH CEREBELLUMSPLICIT ARE R. O. E.S AND PIPELINE RATES ARE SET TO BE RATE CASES, THE RATE CASES USUALLY SETTLE WITH BLACK BOX REVENUE REQUIREMENTS WITHOUT STATED R. O. E.S.

THANK YOU VERY MUCH. APPRECIATE THAT. THANK YOU MR. CHAIRMAN.

PANCAKES WAFFLES, FERC CANDY, I'M STARVING. [LAUGHTER] COMMISSION MC NAMEE?

ALL GOING TO TURN INTO THE A FERC PIZZA TO MIX EVERYTHING. I'M ALSO GRATEFUL FOR THE HARD WORK THAT WAS DONE ESPECIALLY THINKING ABOUT R. O. E. SAG BEEN IN RATE CASES THAT AT THE STATE LEVEL AND THE FUN IT CAN BE TO SPEND TWO WEEKS LIVERING TO THE EXPERT PANEL OVER WHAT THE PROPER R. O. E. SHOULD BE, WHAT THE PROXY GROUP SHOULD BE, I THINK US DIGGING IN AND GAINING A BETTER UNDERSTANDING FROM THE REGULATED COMMUNITY WHETHER WE SHOULD BE CHANGING OUR R. O. E. PROCESS IS VERY IMPORTANT AND I THINK BECAUSE THAT DOES GO TO ONE OF OUR CORE MISSIONS UNDER THE NGA AND UNDER THE FEDERAL POWER ACT AND THAT IS HOW DO THESE ADJUSTABLE RATES AND R. O. E. IS AN IMPORTANT PART AND THAT GOES INTO A SECONDARY ASSPECT OF OUR JOB WHICH IS TO HOW TO RESPONSIBLY BUILD INFRASTRUCTURE AND IN ORDER TO GET INVESTMENT, YOU HAVE TO HAVE A PROPER RETURN SO I'M INTERESTED IN WHAT THE RESULTS OF THIS NOTICE OF INQUIRY WILL BE. AND OF COURSE, THAT'S RELATED TO THE INCENTIVES FOR TRANSMISSION, TRANSMISSION IS ONE OF THE MOST IMPORTANT ASPECTS OF OUR ELECTRIC SYSTEM, ONE OF THE CORE RESPONSIBILITIES WE HAVE HERE AT FERC, SO I'M LOOKING FORWARD TO GAINING INPUT FROM THE PUBLIC AND STAKEHOLDERS ABOUT HOW OUR TRANSMISSION INCENTIVE SHOULD WORK. THANK YOU.

MR. CHAIRMAN WE'RE READY TO VOTE ON THESE ITEMS AND WE WILL VOTE TOGETHER, THE VOTE BEGINS WITH COMMISSIONER MC NAMEE.

AYE.

COMMISSIONER GLICK?

AYE.

COMMISSIONER LAFLEUR.

AYE.

MR. CHAIRMAN.

AYE.

THAT'S ALL WE HAVE FOR DISCUSSION.

THEY THINK YOU MADAM SECRETARY, I WOULD LIKE TO TAKE A MOMENT OF CHRIS ELLSWORTH FOR 11 YEARS AT THE FEDERAL ENERGY REGULATORY COMMISSION WHERE HIS VAST EXPERTISE ON ANALYSIS AND ON THE ENERGY MARKET HAS FURTHERED FERC'S GOAL OF INSURING JUST AND REASONABLE RATES. CHRIS JOINED THE COMMISSION IN 2008 AFTER AN IMPRESSIVE CAREER IN THE PRIVATE SECTOR, HIS DEEP KNOWLEDGE OF JURISDICTIONAL MARKET HAS ENABLED HIM TO MAKE SUBSTANTIAL CONTRIBUTIONS TO THE POLICY AND OVERSIGHT WORK AS IT RELATES TO THE WHOLESALE AND NATURAL GAS MARKETS. HE'S BEEN AN INVALUABLE RESOURCE IN IMPLEMENTING COMMISSION INIT WAATIVES TO ENHANCE NATURAL GAS MARKET TRANSPARENCY AND IMPROVE GAS, ELECTRIC COORDINATION ACROSS THE INDUSTRY. SPECIFICALLY THROUGH ORDER 787 AND 809. CHRIS HAS ALSO REPRESENTED THE COMMISSION ON A NUMBER OF KEY INTERAGENCY INTERNATIONAL INITIATIVES AREYALATED TO THE ENERGY MARKETS. HE SERVED ON A WHITE HOUSE INTERAGENCY TASK FORCE ON NATURAL GAS STORAGE, SAFETY AND COORDINATED WITH MY OFFICE TO REPRESENT THE COMMISSION ON THE U.S. INDIA GAS TASK FORCE, A WORKING GROUP CONVENED TO EXPAND ENERGY COLLABORATION BETWEEN THES AND INDIA--UNITED STATES AND INDIA AND PRACTICES PROMOTE THE INDIA GAS SECTOR IN U.S. ENERGY AREALATED EXPORTS. AS I MENTIONED EARLIER THE COMMISSION HAS BEEN ENGAGE OFFICE OF DIVERSITY A NUMBER OF COLLABORATIVE EXERCISES WITH OUR COUNTERPARTS IN *EUBDIA, THESE WOULD NONAPOPTOTIC THE BE POSSIBLE WITHOUT THE GOOD WORK OF SO MANY HERE ON THE FERC STAFF LIKE CHRIS AND I WOULD LIKE TO PERSONALLY THANK CHRIS FOR HIS EFFORTS IN THIS REGARD. HIS EXPERTISE HAS BEEN INCREDIBLE LOAMACYY VALUABLE THROUGHOUT OUR CONVERSATION WITH THE INDIANS AND WITH OUR GOVERNMENT PARTNERS AND HE WILL CERTAINLY MISS HIS INSIGHT. I KNOW IT'S A SENTIMENT FELT ELSEWHERE IN THE BUILDING AS WELL. AS A MANAGER AND SENIOR LEADER CHRIS HAS ACTED AS A MEANTOR TO NEARLY ALL FUEL ANALYST IN THE OFFICE OF ENFORCEMENT AND THE OFFICE OF ENERGY POLICY ASK INNOVATION. BECAUSE OF HIS RELIABLE ADVICE AND SOUND JUDGMENT, CHAIRMAN, COMMISSIONERS AND COMMISSION SENIOR STAFF, HAVE SOUGHT HIS INPUT WHEN MAKING DIFFICULT DECISIONS RELATED TO THE NATURAL GAS MARKETS. THAT'S A TESTAMENT TO THE TYPE OF EXCEPTIONAL PUBLIC SERVICE, PUBLIC SERVANT CHRIS HAS BEEN OVER HIS 11 YEARS AT THE COMMISSION. HIS SOUND JUDGMENT WILL BE DEEPLY MISSED BUT WE ARE GRATEFUL FOR ALL THAT HE'S CONTRIBUTED DURING HIS TENURE AT FERC. I AM PROUD TO PRECEPT HIM TODAY WITH THE COMMISSION MERIT AWARD AND WISH HIM ALL THE BEST IN HIS RETIREMENT BUT BEFORE I INVITE CHRIS UP TO ACCEPT THIS AWARD I WOULD LIKE TO TURN IT OVER TO MY COLLEAGUES FOR ANY COMMENT THEY MAY HAVE.

WELL, THANK YOU VERY MUCH. I ALSO WANT TO THANK CHRIS FOR ALL HIS CONTRIBUTIONS TO FERC OVER THE PAST DECADE, WE'VE BEEN VERY LUCKY TO HAVE HIM. I PARTICULARLY ENJOYED AND APPRECIATED CHRIS' WORK ON THE MANY ANNUAL STATE OF THE MARKET REPORTS, SUMMER RELIABILITY REPORTS AND WINTER RELIABILITY REPORTS THAT HE SHEPHERDED, EVEN IF HE WAS DELIVERING BAD NEWS SUCH AS GAS PRICES WILL SPIKE IN BOSTON AGAIN THIS WINTER, [LAUGHTER] , HIS TOTAL COMMAND OF THE SUBJECT MATTER AND HIS IMPECCABLE LITING BRITISH ACCENT MADE THE NEWS MUCH EASIER TO TAKE. [LAUGHTER] I ALSO APPRECIATE CHRIS' CRITICAL ROLE IN THE GAS ELECTRIC COORDINATION EFFORTS IN WHICH YOU PLAYED A LEADERSHIP ROLE AND HAS BEEN MENTIONED HIS MENTORSHIP OF THE FOLKS IN DMO AND ELSEWHERE THAT WILL CARRY ON HIS LEGACY AT THE COMMISSION. AND I WISH YOU GOOD HEALTH AND EVERY HAPPINESS IN YOUR NEXT CHAPTER.

I WANT TO SAY THANK YOU CHRIS, THANK YOU FOR YOUR PUB LIBRARY FOUNDATION SERVICE, WE'RE SO BLESSED HERE TO HAVE SO MANY REALLY CAPABLE AND DEDICATED PEOPLE AND WE DON'T GET TO THANK THEM ENOUGH SO THANK YOU VERY MUCH.

CHRIS, THE FEELING IS THE SAME. YOU KNOW I SAID IT MANY TIMES AND IT'S AMAZING WHEN I HEAR THESE ACOLLATEDS FOR YOU AND THE ONES THAT DEDICATE THEMSELVES TO PUBLIC SERVICE AND THANK YOU FOR MAKING FERC THE PLACE WHERE YOU CHOSE TO DO THAT.

WITH THAT I WOULD LIKE TO INVITE CHRIS UP TO RECEIVE THE AWARD. THANK YOU. [ APPLAUSE ]

CONGRATULATIONS AND THANK YOU AGAIN TO CHRIS AND ALL MY COLLEAGUES, BEFORE WE WRAP UP, I WOULD BE REMISS IF I DIDN'T ACKNOWLEDGE WE'RE ABOUT ONE HOUR AWAY FROM THE START OF THE NCAA BASKETBALL TOURNAMENT, MARCH MADNESS, I WILL NOTE THAT LAST YEAR AT THIS SAME MEETING, I ANALOGIZED BY KENTUCKY WILDCATS TEAM TO THE COMMISSION, MY GOOD FRIEND COACH JOHN AT THE TIME HAD FIVE FRESHMAN, BRAND NEW, STILL FINDING THEIR FOOTING, LEARNING FROM MISTAKES AND STARTING TO COME TOGETHER. I WILL SAY, COACH CALL GOT A NUMBER OF FOLKS GOT A NUMBER OF PEOPLE TO RETURN FOR THIS SEASON AND I WOULD LIKE TO ANALOGIZE THIS YEAR'S KENTUCKY TEAM AS WELL TO THE COMMISSION THAT WE ARE HITTING OUR STRIDE AND I THINK AS THE ROBUST AGENDA WEB CONNECTED HAD TODAY AND THE ACCOMPLISHMENTS OF THE PAST COUPLE OF MONTHS, I THINK MY COLLEAGUES AND I ARE GELLING LIKE WASHINGTON AND JOHNSON AND LOOK FORWARD MUCH FORWARD TO DONNING A UNIVERSITY OF KENTUCKY JERSEY AT THE APRIL MEETING TO HONOR COMMISSIONER LAFLEUR'S MISSION OF COMMEMORATING CHAMPIONS AND WITH THAT MADAM SECRETARY, WE ARE ADJOURNED. [APPLAUSE ]