FERC announced the establishment of a new major Commission program office, the Office of Electric Reliability, effective October 1, 2007. The existing Division of Reliability in the Office of Energy Markets and Reliability ("OEMR") will become its own program office through this change. The Director of the new Office of Electric Reliability will be Joseph H. McClelland, the current director of the Division of Reliability. The Deputy Director of the Office of Electric Reliability will be Mike McLaughlin from OEMR. It should be noted that the Office of Energy Markets and Reliability will be renamed the Office of Energy Market Regulation, which more accurately describes the mission of OEMR.

FERC also announced the creation of the Energy Innovations Sector. The Energy Innovations Sector will be a unit within the Office of Energy Market Regulation and will promote and manage FERC's activities with regard to demand response, energy efficiency, distributed generation, renewable energy issues, greenhouse gas emissions policies and advanced technologies relevant to the transmission grid and wholesale markets. Although there is no head of the sector at this time, Rahim Amerkhail and Mary Morton will be working with this new unit.

Judge Bobbie J. McCartney has been named Deputy Chief Administrative Law Judge.

Other Notables — PJM Market Monitor Dispute: FERC also ruled on two complaints filed by Allegheny Electric Cooperative, Inc. and several other parties against PJM Interconnection, LLC ("PJM") alleging tariff violations and interference with PJM's market monitor. FERC found that the evidence did not support a finding of tariff violations, however, FERC also found that it is unjust and unreasonable for the PJM market monitor to continue to report directly to both PJM management and its Board. According to the Order, the market monitor should report solely to the Board or to an independent committee of the Board. FERC initiated settlement procedures to resolve the remaining issues in the case (Docket No. EL07-56).

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