May 21, 2008

Page 1

ISO New England Inc.
One Sullivan Road, Holyoke, MA 01040-2841
T 413 535 4000 F 413 535 4379

May 21, 2008

Page 1

To: / NEPOOL Markets Committee
From: / Maria Gulluni, Assistant General Counsel – Corporate
Date: / May 21, 2008
Subject: / Proposed Changes to the Information Policy

In preparation for the upcoming meeting of the Information Policy Working Group, this memo describes ISO New England’s proposed changes to the Information Policy.

As stated in my previous memo to the Markets Committee, the purpose of the changes is to synch up the Information Policy with Attachment K to Section II of the Tariff. Attachment K says that “authorized Market Participants” may access Critical Energy Infrastructure Information (“CEII”) because they are bound by the Information Policy. However, the Information Policy is largely silent regarding CEII. While some CEII is incidentally covered in other categories (e.g., Confidential Information, Non-Public Transmission Information, Internal (Satellites) Control Center Information), it is a broad category – anything that contains detailed information about critical infrastructure and is useful to a terrorist – that is not fully captured anywhere in the Policy.

Therefore, rather than amending Attachment K and requiring participants to undergo the same type of scrutiny as third parties in order to access CEII, we propose amending the Information Policy so that participants’ access to CEII is covered. Specifically, the ISO proposes to add the following section (j) to the end of Section 3.0 of the Information Policy to clarify that market participants will protect CEII.

(j)Critical Energy Infrastructure Information (“CEII”)

This information includes:

·Information designated by a Governance Participant or the ISO as CEII, which is defined by FERC as “specific engineering, vulnerability, or detailed design information about proposed or existing critical infrastructure that: (1) relates details about the production, generation, transportation, transmission, or distribution of energy; (2) could be useful to a person in planning an attack on critical infrastructure; (3) is exempt from mandatory disclosure under the Freedom of Information Act, 5 U.S.C. 552 (2000); and (4) does not simply give the general location of the critical infrastructure.”

·Reports, summaries, compilations, analyses, notes or other information which contain such information.

Access to CEII shall be granted by the ISO in accordance with the CEII disclosure processes posted on its website and, in the event that the CEII also falls within a category of information (including Confidential Information) described herein, in accordance with this Information Policy. Governance Participants shall treat CEII as if it were Confidential Information, notwithstanding any other provision of this Information Policy, and additionally shall maintain CEII in a secure place.

We also propose to make the following revisions to Section 3.2 to make clear that any CEII we file with FERC will be designated as such. (Changes are reflected in bold underlining or bold strikethrough.)

If the FERC or its staff, during the course of an investigation or otherwise, requests information from the ISO that is Confidential Information or CEII, the ISO shall provide the requested information to the FERC or its staff, within the time provided for in the request for information. In providing the ConfidentialiInformation to FERC or its staff, the ISO shall, consistent with 18 C.F.R §§ 1b.20 and 388.112, request that the information be treated as confidential and non-public by the FERC and its staff and that the information be withheld from public disclosure. The ISO shall notify any affected Furnishing Entity(ies) (1) when it is notified by FERC or its staff, that a request for disclosure of Confidential Information has been received at which time the ISO and the affected Furnishing Entity(ies) may respond before such information would be made public; and (2) when it is notified by FERC or its staff that a decision to disclose Confidential Information has been made, at which time the ISO and the affected Furnishing Entity(ies) may respond before such information would be made public. In providing CEII to FERC or its staff, the ISO shall, consistent with 18 CFR § 388.112, request that the information be treated as CEII by the FERC and its staff.

I look forward to discussing this matter with you on Friday. Thank you for your consideration.

ISO New England Inc.
One Sullivan Road, Holyoke, MA 01040-2841
T 413 535 4000 F 413 535 4379