chairman lafleur, mr. cauley, can you explain what you're doing to insure that law enforcement agencies and officials are fully integrated into the efforts to secure our power grid. >> well, thank you for that yes, senator. i'll mention two things. the order that ferc issued on march 7th on requiring physical security standard, one of the things it requires is that after the critical facilities list is done each asset owner identifies specific threats and vulnerabilities of each facility. and it contemplates that they involve government agencies such as law enforcement in assessing the threat and vulnerability of a particular facility because who knows better than the police, location, geography and so forth. in addition, ferc and other agencies, dhs, and fbi, have done 13-city tour around the u.s. and canada to explain the lessons of metcalf and local law enforcement is one of the main attendees as i understand it at these meetings because obviously, as you said it could happen in any community. >> thank

lafleur. what are you doing to respond to the inspector general's management alert yesterday that said in part, and i'm going to submit this to the record, the department subject matter experts have confirmed that at least one electric grid presentation created by the commission staff should have been classified and protected at the time it was created. this document and others at the essence of its content may hold apart to be provided by the federal officials in a classified setting that was not appropriate. and that is in creating and disputing the documents that led us to the preliminary conclusion that the commission may not possess adequately controlled identifying and handling national security information. there are recommendations in the management of letter that i know you are familiar with. can you comment about what you're doing again to implement these and what additional steps you may be taking at the active chair to make sure that this doesn't happen again. following first of al

i would like to know and i will start with you chairman lafleur, your view of this. and should ferc be pushing certain kind of fuel or should it be looking at basically the portfolio and mix that our utilities have? >> well -- >> ferc, you touched on it, ferc's proper role. >> yeah. well, thank you for that question. i do not think it's ferc's job to pick certain kinds of fuels. the whole concept of a market is that it uses a generalized product that allows different fuels to compete fairly and so, if there are preferences for certain kinds of fuels that is not a fair market by definition. i think ferc should try to keep the, be guided by reliability and what the customers need, not by a preference for a particular fuel. >> let me ask, because i know time, we'll go through in a second round, right now, just explain, as simply as possible, any of you all want to jump, the system way it works now. you have producers such as aep, first energy in mine. they're responsible for producing the energy that is needed that goes into the transmission which is what we're calling

lafleur. what are you doing specifically to respond to the mr.friedman, the inspector general's, management alert yesterday that said in part -- and i'm going to submit this to the record -- >> the department's subject matter experts have confirmed that at least one electric grid-related presentation created by the commission staff should have been classified and protected from release at the time it was created. this document and others, the essence of its content may in whole or part have been provided to both federal and industry officials in an unclassified setting. that was not appropriate. the methods used in creating and distributing this document led us to the preliminary conclusion that the commission may not possess adequate controls for identifying and handling classified national security information. there are four specific recommendations in this management letter that i know you're familiar with. could you just comment about what you're doing again to implement these and what additional steps that you may be taking as the acting ch