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Fortnightly Magazine - February 1 2000

to contact Robert J. Doran, PG&E's director of FERC rates and regulation. I asked him whether PG&E's real problem was a failure to downsize staff and trim costs to accommodate the shift of responsibility for grid management to the ISO.

"Not true," said Doran.

"First of all, these SC costs are not the administrative costs of ISO personnel, but rather ISO costs related to system operation. PG&E has found that its personnel are still necessary to perform functions related to the ISO and its transmission customers."

In fact, Doran avers that PG&E's transmission sector staff has actually grown since the ISO started up.

"Originally a reduction in PG&E's staff was contemplated; however, the increased complexity of operating PG&E's system under ISO direction has resulted in an increased workload in the transmission switching centers. In addition, PG&E still needs to maintain schedulers 24 hours per day in its control center to receive real-time schedule changes from its transmission customers and relay them to the ISO as well as other personnel which receive preschedules from the customers daily and submit them to the ISO using the ISO's rules and protocols."


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