California Independent System Operator (CAISO) staff admitted during the grid operator?s June 24 meeting that the Federal Energy Regulatory Commission?s August 31 deadline for refunding charges from October 2000 to June 2001 is not going to be met. CAISO has been rerunning market-clearing prices for that time using FERC methodology, and despite repeated promises, those final settlements have yet to be delivered. The money in question is what the grid operator may have been shorted by traders and generators?or how much it might have overpaid during that time. Despite the deadline issue, the board appears to be working calmly in the eye of the tornado of regulatory, court, and internal decisions that have assaulted the grid operator this month. New interim chief executive officer Marcie Edwards did not address the board. Edwards, formerly a member of the CAISO board during its initial phase, as well as bulk power manager of the Los Angeles Department of Water & Power and most recently Anaheim public utilities, is taking over July 1 for Terry Winter. Winter resigned the position over what many think was pressure from the board due to lack of progress on the grid operator?s market redesign. Market redesign, or MD02, seems to have taken off in the wake of Winter?s resignation. ?This is a watershed,? said board chair Michael Kahn when apprised by staff of MD02?s progress. He added that while there are implementation issues, there is movement in the total policy arena. The board made progress in some noncontroversial transmission investment. Paving the way for the Miguel-Mission transmission line to beef up the San Diego area?s system, CAISO approved several nonwires upgrades. Adopted was the Southwest Transmission Expansion Plan, which includes upgraded capacitors, a second Devers transformer, and another phase shifting the Imperial Valley transformer. The additions require little or no permitting, according to Jeff Miller, CAISO regional transmission manager. Miller added that the improvements are planned to come in after completion of the second Miguel-Mission transmission line, currently expected to be in service in 2006. Two other transmission projects were approved. CAISO supports Pacific Gas & Electric?s recovery of reasonably incurred costs associated with permitting and construction of the Lakeville-Sonoma 115 kV line. Also, Edison?s Cross Valley Rector Loop Project received support for costs associated with permits. The pending issue of adequate electricity for this summer was deflected to the California Public Utilities Commission, although CAISO has attempted, rather successfully, to get the commission to include its short-term economic requirements in Southern California. CAISO staff did note, however, that Reliant?s Etiwanda units 3 and 4 were signed up June 24 for a reliability-must-run contract. That will keep the older plants subsidized in case they are needed this summer.