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Tanya: When the Columbia purchase was done in January, did the 1/30/98 ISDA Master between ENA and Columbia Energy Services Corporation stay with Columbia or come over to us? The reason that I am asking is that they have sent ENA a letter notifying us of Columbia's transfer of its rights under such Master to The New Power Company, so it seems as if they believe that that Master was not part of our acquisition. Who in credit needs to be aware of this if in fact this Master will be assigned to New Power? Carol
Columbia assignment
Mark: Who should handle this? Given my situation, I would prefer not to take this on and I have talked to Seth about my situation. Please let me know what you think. Would this be something that Lou Stoler would work on with our help? Carol
sorema structure
Mark: I received a notice in the mail in connection with Columbia Energy Services Corporation's sale of its "Mass Markets" business to The New Power Company. The purpose of the notice was to inform us that effective July 31, 2000 Columbia would be assigning its interest in the January 30, 1998 ISDA Master Agreement that it has with ENA to New Power as well as all transactions under it. Please call me if you have any questions about this. I expect that we will receive shortly a formal consent agreement.
Columbia/New Power Asset Purchase
Christine: John Suttle will be sending you by fax our the Assignment executed by ENA. Could you please send me the signature pages for Chase and Barrett once they have been executed? Thanks.
Chase Assignment
Michele: I just wanted to confirm with you that you had everything you need in connection with my maternity leave/leave of absence. As I think I indicated to you, the December 31 date that Mark gave in his e-mail to you is a "tentative" date and I may return earlier or with Mark's permission, extend the date. Please call me if you have any questions. I will send you the doctor's note showing the delivery date once that occurs. could you please send me your fax number? Also, could you please have someone deliver to me (EB 3892) the insurance form that I need or fax it to me at 646-3393. Thanks.
Maternity Leave
Susan and Samantha: I thought that both of you should have this. This is the new draft of Deutsche Bank schedules which I plan to review. I have forwarded this to Rod Nelson.
DB/Enron ISDA
Cindy: Thought I would try e-mailing you since using the phone is more of a challenge. So far so good although I can't say that we are on any type of schedule. Before I forget, what is the name of the breast pump that you are using? Looks like the one that I have is not that great. How many ounces should I expect to be able to pump? I'm trying to judge whether I should keep this pump. Anyway, back to Charles Eugene, he is pretty much of a night owl so i try to sleep when he does when I can. We are ion a feeding frenzy every 21/2 to 3 hours and I'm hoping I can extend that at night soon. Any suggestions? What type of formula do you use? Alos, do you have any secret methods for putting Jillian down to sleep? Do you let her suck on a pacifier? All Charles wants to do is suck on me. Arthur was better at falling asleep on his own. How's Jillian doing ? I can't wait to see a picture of her and I will be sending out pictures soon. Arthur is adjusting well. He is really into tennis now which I am thrilled about. We were able to convince Bill's mother not to come this weekend because I am not quite up to a visit. I think she took it well but you never can tell, but at this point I really don't care what she thinks because i am not ready for her to visit until I'm more mobile which hopefully I will be in another week or 2. Sue, How are you and Cate doing? Can you talk to mom about scheduling a visit so that we can schedule a christening date? Bill's older sister's husband Bill is the godfather. Mom mentioned late August but I would like to pin something down soon so that we can make the necessary arrangements. Well, I've got to go as I hear Charles waking up. Take care both of you and call or write me. Love, Carol
How Are you?
Terry: Just wanted to let you know that our son, Charles Eugene, was born on July 12th. He is absolutely beautiful and well worth the long wait and all of the time and effort that it took to have him. After a prolonged stay in the hospital, we are both home now and doing really well. I'm on cloud nine and I'm sure that all of this will hit me soon. Hope you are doing well. Take care.
Birth Announcement
Suzanne: There is a savings bond program that Enron sponsors for year 2000 newborns. Could you please find out what I need to do to apply for one. I thought that i saw something in workperks about it. Thanks.
Savings Bonds
We produce political/public affairs television programs which air in state capitols. Currently we are in Pennsylvania and Ohio, expanding into NJ, Md and DE. The disruptive technology is this: the real target of the TV show is the guest, not the audience. Lobbyists have trouble scheduling time with politicians and regulators, and when they get on the schedule lobbyists have time getting genuine intellectual focus from government decision makers. We don't have trouble with either. Every politician and appointee wants to be on television, they always say yes. When they ask us what the topics will be, and we mention something like telecommunications competition or electricity deregulation they want briefing material which they actually study in order to do well on television. In addition by inviting journalists and radio and television commentators as members of out panel we have the same effect on them. In short: Step one: identify gov't decision makers that our sponsors want to influence Step two: invite them on the program and, in doing so, develop rapport with their key staff members on the relevant issues Step three: send briefing materials and/or give a briefing in person before the the taping Step four: towards the end of a show in which the Newsmaker has largely been bragging about his/her policy agenda Step five: steer the conversation to sponsor selected topics, framing the issue in such a way as to make it very difficult for the guest to resist the conclusions suggested by the host. Step six: take the statement of support for the position we favor e.g. tort reform, privatization, deregulation, tax cuts, etc. (which by the way we almost always are able to get from the guest on the air) and in addition to airing along with the airing of the rest of the show, we digitize it and send it out to legislators, regulators and the proper beat reporters via email making it almost impossible for the newsmaker to back off later. Current sponsors: Medical Society, Hospital Association, State System of Higher Education, Manufacturers Association, Cornell Corrections, AT&T. Levels: 25K, 50K, 100K per year for Pa; 15k for Ohio (one level only). This is an amazingly simple, elegant and direct way to influence policy makers and opinion molders and we do not have an energy-oriented firms in partnership with us. Enron and Newsmakers are a very good fit. I'll be in touch, p.s. Sponsorship can be done in ways that are not visible if you prefer, via intermediaries, if you are publicity shy. Jerry Bowyer Pennsylvania Newsmakersseen across the state on these television stations: www.jerrybowyer.com/coveragemap.php The Jerry Bowyer Programon WPTT radio in Pittsburgh, 1360am: www.1360wptt.com/bowyer Focus on the Issueson Cornerstone Television Audio clips from these programs can be heard at www.jerrybowyer.com/audio.php
disruptive technology, short and simple and confidential
As requested, please see attached list of bonds that we have received cancellation notices on. I spoke to Kate Joslyn, Enron Direct Canada and she said they are working on the sale of Enron Direct Canada. If you need any more information, please let me know
Bond Cancellation - EES/Enron Energy Marketing Corp/Enron Power Marketing/ENA
We have received invoices from MAIN region for 2002 assessment. I do not know of any Enron positions that would warrant us making payment. However, let me know. Enron SE past due $3925.45 EPMI past due $13426.43
MAIN invoices
Phil - Per our conversation, Enron has successfully procured sufficient UCAP for January 2002 through NYISO's Monthly Auction. The total dollar amount for that Obligation is $219,189. Enron posted $750,000 in collateral to participate in the Monthly UCAP Auction on Dec-07. Enron is requesting the difference between what was posted and the cost of our Obligation wired back to Enron's Account; that difference is $530,811. It is understood that Enron is obliged to re-post collateral come the following UCAP Auction in early January for February's Obligation. Wade - Can you please e-mail Phil Gootee and Mike Mackles from NYISO Credit Dep't wiring instruction for the $530,811. Thank you. Please call with any questions.
Money Back to Enron from NYISO from ICAP residual
Please find attached EES' revised Cash Forecast for 12/17/2001. This has been updated to reflect new estimates for Gas and Power Purchases to get us through the holidays. Also, I put in $10MM of EFS receipts for tomorrow as it is my understanding that there is that much additional received not yet deposited. I have not forecasted any disbursements for Wed - Friday assuming they get in. Wade
REVISED EES 12/17/2001
Just a reminder when drafting any documents that refer to EES's load: there are over 17,000 meters associated with this load and any estimates of projected load are based upon incomplete data and a fair amount of guess work. Tim Coffing has significantly improved this process; however, it is my understanding that we do not have, even at this time, a 100% accurate picture of historic usage, much less precise forecasts. Therefore, I strongly suggest liberal use of the word approximate when referring to Enron's California load. Thanks,
EES load data
Jim- I was hoping that you could give me a status update on the outstanding invoices from PJM to the two Enron subs. It was my understanding that you were going to be discussing them with the "5 day" committee today. Given the ramifications of a default, some of which we spoke of this morning, I would like to stay as up-to-date as possible with Enron's plans and intentions. Thank you very much,
Status of invoices
Ben Jacoby told me that the state of Tenn. (through an Energy Policy Committee) has implemented a moratorium on the state reviewing air permits and siting on new IPPs. Apparently TVA is exempt from the moratorium. He heard that TVA has been telling the govenor's office that all the new IPPs coming on line in Tenn. are putting TVA's transmission resource at jeopardy. If this is being said, it is incorrect because, per TVA's "procedures", TVA conducts an interconnection study before connection, so TVA actually approves the interconnection, plus TVA would not let the IPP purchase transmission (or would cut its transmission). Enron's proposed plant in Tenn. already has the air permit, so Ben is not as concerned about Enron's plants. However, this type of behavior could show that TVA may be simply keeping IPPs off its system (even though presumably they would pay it revenue -- same problems that we continue to have with VIUs). Could this be helpful in messaging somehow to DOE, etc. that TVA should be in an RTO?
TVA
Jim Speaking with Don Miller last night he has indicated that Jeff McMahon would like to secure our membership and ongoing participation in NEPOOL and possibly other Pools, and is prepared to make cash available through the Cash Committee. While we discussed a number of options, the starting point is to identify the contracts that are in the money to EPMI and which have not yet been terminated. The long term deals that we have been looking at in NEPOOL are NSTAR, UI and CMP. We are getting closer to an acceptable internal valuation of these and need to get a "robust" number that we can defend in order to release cash from the Cash Committee. The three main cash related issues we need to address as I see it in the short term are: (1) We must provide NEPOOL with the comfort, possibly even in the form of a pre-pay, that we will pay our invoices for November, especially since the bonds we posted terminate on 29, December (2) We must provide cash collateral immediately and (3) We will need pay our NEPOOL invoices over a two, or possibly, one week period to reduce NEPOOL's exposure to EPMI. This creates cash flow issues as we are only paid monthly by our customers. With the one way payment issue we are facing with NSTAR and UI there is clearly little incentive for them to re-negotiate their contracts. Turning to point (2), it is not clear to me whether we will be able to post the $137,390,360.10 and I will assume that we will not get the authority to post this but a lesser amount. In trying to provide NEPOOL with comfort as to their exposures it may be that we can get them to agree that for the foreseeable future we will only be serving certain contracts and that the collateral requirement be based solely on EPMI serving those contracts. I am not confident however that NEPOOL has the authority to what is in effect change the Financial Assurance Policy for one Participant, without approval of all Participants and approval of FERC, but we can explore this with them. If the price of energy, ICAP and other services moves up then EPMI should be given a reasonable period of time to post further collateral. That way we can hopefully reduce the initial amount we post and if the price moves up we can elect at that point whether to retain our membership or relinquish it. While EPMI will be taking market risk, which ill not be hedged, it will have the ability to stop performing f the price moves against it. It should not be forgotten that both the NSTAR and UI deals are one way payments and there is no time limit as to when either of these counterparties can claim a default due to EPMI's bankruptcy. The effect of this being that we are at risk from a termination by these two counterparties at any time and since we are currently the "Defaulting Party" we would not receive any Early Termination Payment. CMP is a two way payment and therefore there may well be some merit in entering into a term energy purchase deal to lock in value to this contract. I am not aware of what EES is trying to do with NEPOOL, or the other pools in the North East, however I thought it would be helpful if they knew what we were trying to do and why. Any input as to what EES is doing and any merit in a joint approach could be explored if both companies considered value could be achieved. Finally, the recipients of this email will hopefully know of other people, for example in credit, scheduling and settlements who could assist in ensuring that we can accurately value and schedule the contracts we would like to continue performing under, please pass these on to Don Miller who is coordinating this initiative. Regards,
NEPOOL
Dear Friends, As has been my custom for the last several years since my moving from New Yorkto CaliforniaI am sending a message wishing each and every one of you and your families the Happiest and Healthiest of Holiday Seasons. This year perhaps more than ever I have had the chance to think about how fortunate I have been to be able to send a greeting out to so many people with whom I have had the opportunity to work with and call my friends over the years. From the old NYPP to ABB, APX and Enron, it has been my pleasure to have worked with you. No matter where I have gone I have been lucky enough to met and work with some of the best people in the industry. My hope for each of you is to have a prosperous New Year and that I have the opportunity to see you again as time moves forward. Happy Holidays,
Merry Christmas and Happy New Year
FYI. I lifted this from SoCalGas' responses filed today to PUC questions regarding our electric and gas activities in California. We may want to get our hands on the filing, which I do not have. Best,
SoCalGas Files Motion with Bankruptcy Court Regarding Gas Business with Enron
We have previously told the TX PUC Staff we will be posting required collateral of $100,000 by the end of the month (as required by Rule 25.107(f)) in order to maintain EES certification. The requirement is that we maintain "unused cash resources of at least $100,000, which will allow the REP to incur in Texas up to $250,000 in total monthly billings from TDUs." Staff says we can meet this requirement by posting the $$ to an account of our choice. We just need to notify them where the money is and state the money is for the purpose of this rule.
TX Collateral posting
Kim, I have done an exhaustive audit of what needs to be paid in order to bring our DA bills current in PGE and SCE. All the bills included on these files are pre-petition. We are not past due on any post-petition bills. I will be out until January 2 (unless Evan can come up with a compelling reason for me to come back sooner) so I am saving the files on the P drive in a folder called "Diann" in case a payment needs to be made this week. I will be in town, so please don't hesitate to page me if you have questions. (The two files with CPUC on the end are the files which go to Jean Bennett with Goodin, et al.) In summary, we need to pay $14,313,872.35 to bring us current: SCE Disputed bills = $1,349,729.51 to be wired to Goodin, et al SCE Undisputed bills = $276,090.13 to be paid to UDC PGE Disputed = $11,713,991.02 to be wired to Goodin, et al PGE Undisputed = $974,061.69 to be paid to UDC
DA Payments Due for PGE and SCE
I have talked to Penny Price 614-460-5540 about the letter COH sent to our customers. We estimate we have lost 5-10% of our customers effective for January because of this letter. She was to have their attorney, Dave Keenan, call me but I haven't heard from him yet. I told her we will want a clarifying letter to go out and a retraction to the statement "Enron may or may not be able to supply your customer needs." A gas contact at the OH PUC is Kerry Adkins 614-752-9374. I have told other staffers of the problem ( Tamara Turkenton of Consumer Services) and she gave me Kerry's name.
Columbia of Ohio
Jim and Rick, I will am resigning from Enron and terminating my employment, effective December 31, 2001. At the first of the year, I will be joining the consulting team building RTO West. It has been a great opportunity to work with you here at Enron. I have learned a great deal. Thanks for all you kindnesses to me. Steve Contact Information:
Resignation from Enron
In our department, we have received two letters as follows: 1. A letter from ISO New England notifying us that EES is in "Finanacial Assurance Defuals." According to the letter, EES "must cure this Finanacial Assurance Default on or before December 21, 2001." This letter was originally mailed to Richard Ring (EES), Becky Pitre (EES), and Jim Steffes (EPMI) from the ISO New England. 2. A letter from ISO New England with the correspondence that they received from Safeco Insurance Company about them not extending "Surety Credit to Enron Post Petition." I am forwarding copies to both Karen Cordova and Jim Steffes. Please let me know if there are any questions. Thanks,
Letter form ISO New England
It is my understanding, as much as anyone knows it today, that between now and January 2, 2002, we do not have to post any collateral or other payments (other than payment for commodity) to keep contracts we want to keep alive. Dan and Janet are meeing with McMahon today at 2:00 to discuss our overall strategy. Can you confirm back to me the above comment. Thanks
Collateral
See attached revised schedule: Primary Changes NEPOOL requirement to pay accrued post- petition charges and start pre-paying for energy. I understand Dave Gorte is aware of this decision by EPMI, EES and EEMC; and We bought California gas through the end of the year today and payment is required tomorrow. Sorry for the late changes. Wade
REVISED UPDATE 12/20/2001
Attached please find the actions of the December 18, 2001 Reliability Committee meeting. This material will also be posted on the ISO Website. Richard W. Burke, Secretary NEPOOL Reliability Committee <<RC_ACTIONS_011218.doc>> - RC_ACTIONS_011218.doc
12/18/01 RC Actions Letter
It currently looks like we will not have any wire requests today for power prepayments. East Power - We are currently working with PJM and NEPOOL to come to a payment resolution to remain active and current in those two markets, and will not have any need for a wire transfers today (the earliest we will need may be tomorrow depending upon form of resolution). Additionally, given the post Christmas market conditions and lack of liquidity (and staffing needs in companies other than Enron), Kevin and Dana were not able to execute any bilateral prepay deals for the regions outside PJM and NEPOOL. They will be continuing to push these deals for the next several days, but realistically, it may be next week before we can actually pull these off. West Power - We will have tomorrow a detailed prepay list and wire requests for the first week of January. Thanks for everyone's help with this process. Don
Power Prepayments
Attached is the EES update for 12/27. We have received the NEPOOL escrow instructions and amount, but not the sign off yet to fund. I assume this will have to be Friday, so its in the forecast for tomorrow. If not, then it will be Monday or later next week. Thanks
Update 12/27/2001
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CORRECTION: Outlook Outage - Friday, December 28, 2001
This week on Pennsylvania Newsmakers, State Senator Allen Kukovich talks about the key issues in his campaign for Lieutenant Governor, and a representative of the PA Council of Chief Probation Officers discusses the very difficult questions involved in sentencing and incarcerating juvenile offenders. Broadcast this week on the following stations: ? WGAL Channel 8 (Harrisburg and Lancaster) - Sunday 11am, Dec 30th ? WFMZ 69 (Allentown & Philadelphia) - Monday 11pm, Dec 31st ? WBGN (Pittsburgh) - Sat 3:00 pm, Dec 29th ? WKBS 47 (Altoona) - Thurs 11pm, Friday 5:30pm and Sat 12:30pm, Jan 3rd, 4th and 5th On cable: ? Blue Ridge Communications Cable TV 13 - Sunday 3:30 pm, Dec 30th CATV Channel 8 - Tues 7pm and Wed 1pm, Jan 1st and 2nd To unsubscribe reply to jerrybowyer@attbi.com with "remove" in the subject line. Jerry Bowyer Pennsylvania Newsmakersseen across the state on these television stations: www.jerrybowyer.com/coveragemap.php The Jerry Bowyer Programon WPTT radio in Pittsburgh, 1360am: www.1360wptt.com/bowyer Focus on the Issueson Cornerstone Television Audio clips from these programs can be heard at www.jerrybowyer.com/audio.php
Kukovich for Lt. Governor, on Pennsylvania Newsmakers
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This week on Pennsylvania Newsmakers, CEO of the Hospital and Healthsystem Association of Pennsylvania Carolyn Scanlon tells viewers why something must be done now about the outrageous medical liability premiums that are forcing many doctors to shut down their practices. The CEO of Summit Health also joins our panel of guests for discussion of this topic, and others. Broadcast this week on the following stations: ? WGAL Channel 8 (Harrisburg and Lancaster) - Sunday 11am, Dec 23rd ? WFMZ 69 (Allentown & Philadelphia) - Monday 11pm, Dec 24th ? WBGN (Pittsburgh) - Sat 3:00 pm, Dec 22nd ? WKBS 47 (Altoona) - Thurs 11pm, Friday 5:30pm and Sat 12:30pm, Dec 27th, 28th and 29th On cable: ? Blue Ridge Communications Cable TV 13 - Sunday 3:30 pm, Dec 23rd CATV Channel 8 - Tues 7pm and Wed 1pm, Dec 25th and 26th To unsubscribe reply to jerrybowyer@home.com with "remove" in the subject line. Jerry Bowyer Pennsylvania Newsmakersseen across the state on these television stations: www.jerrybowyer.com/coveragemap.php The Jerry Bowyer Programon WPTT radio in Pittsburgh, 1360am: www.1360wptt.com/bowyer Focus on the Issueson Cornerstone Television Audio clips from these programs can be heard at www.jerrybowyer.com/audio.php
Increasing Crisis in Medical Care
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Guys, Attached is my strategy plan for Ontario over the next four months. I have discussed it with Paul DeVries and Rob Milnthorp and they are supportive. My market opening strategy dovetails with my thoughts on staffing in Toronto which are that we need immediate short term full time support for the next few for Enron Direct from either a contract employee/consultant/lawyer knowledgeable on Ontario retail and gas issues. This person would be supported by me, Fino Tiberi, and Vinio Floris and may be offered a permanent position based on their performance during the contract period. The project would be to do the assembly of pertinent rules, legislation, tariffs, etc that govern the retail gas and power markets in Ontario (same project Fino and Dave Vetsch are doing in Alberta). On wholesale and market opening issues I intend to wait on replacing Aleck and instead rely solely on the market opening strategy (which includes my personal involvement) to cover off our advocacy requirements in Ontario over the next four months. Coverage of more technical issues (eg those dealt with by the IMO Techical Panel) will be covered by me and Garrett Tripp (the trader in the Toronto Office who apparently has time given he is waiting for market opening). I don't expect the technical work in requirements in Ontario will be extensive. Before the end of February, I will have a much better sense of the prospect for market opening and will then resume the search for a permanent Government Affairs staff member to assume Aleck's former responsibilities. Obviously nothing in this is written in stone, so I wanted to discuss with you guys preferrably today so or Monday morning. I can be reached on my cell phone today at (403) 818-6797 (except between 12:00 and 4:00 your time when I am on a plane back to Calgary) Regards,
Ontario Market Opening Strategy
1) The G-IMB rate is the monthly gas adjustment rate published on their web page. For Sept., it was $3.92 per Dth. (Last winter, it exceeded $60 per Dth.) The calculation under Sec 6 of the margin agreement would always use the most recently published price. 2) Their current calculation shows a short of 76,000 Dth based on usage of 648,000 and delivery of 572,000. Brent will fax me the actual documentation. 3) Gas in storage is not pledgeable for this purpose. They are saying storage gas is already required under the contract. Brent told me there will definitely be a letter sent to Enron today spelling out the request and consequences for non-compliance by the 13th. I need to know who all should receive this letter and proposed agreement.
Answers from SoCal
As discussed at the meeting this afternoon attended by Jim Steffes, Becky Cantrell, Brian Redmond, Tom Martin, Pat Keene, and Jean Ryall (via phone): Objective: Obtain greater transparency and commoditization for transportation of natural gas from liquid points in the production area to markets. Government Affairs (1) Standard Contract Deliverables: (2) White Paper Initial Plan: (1) Set up meeting next week to discuss particulars of a standard contract. Attendees to include Jim Steffes, Barbara Gray, Jean Ryall, Leslie Lawner, Julie Gomez, Pat Keene. (2) Identify industry advisor(s) who is(are) well-respected within the Texas gas network who would be willing/able to sponsor the white paper. (3) Review Texas statutes and RRC Codes.
Texas Intrastate Regulatory Action
We received the attached letter from SoCal Gas late this afternoon. They are requesting that Enron execute the Supplemental Margin Agreement by COB Tuesday, the 13th, or possibly face termination from their marketers' program. We will reassemble the folks who've been working on this on Monday.
SoCal Gas
The following reports have been waiting for your approval for more than 4 days. Please review. Owner: Luiz T Maurer Report Name: LM 100301 Days In Mgr. Queue: 7
Expense Reports Awaiting Your Approval
Jim, thanks for the call this morning. As promised, I've attached the executive summary for the C'RM business idea we discussed along with a list of questions I've been compiling to help me better understand the municipal government market space I'll look forward to our Monday meeting. Thanks,
Citizen Technologies
Meeting covered Market Power and Market Monitoring issues. First presenter was David Patton, from Potomac Economics. This firm has been jointly hired to provide technical support to SPP, MISO and Alliance. Many initial questions on what is market power, how can you define a well functioning market, etc. David envisions a market monitoring organization. If a problem emerges, it has to work with the RTO. IMM should not recommend power mitigation measures, but it should report any problems to FERC. It (has to go via FERC). General feeling is that Market Monitoring should be much more than market power, but to make sure that the market as a whole is functioning. It seems to me that the proposal is aligned with what Christi has advocated as part of the Southeast Mitigation. Multiple questions on how power market should be handled for must run, out of merit (constrained on and contrained off plants) and inflexible plants (e.g. hydro or take or pay gas contracts). Proposals to establish price caps were not accepted. Instead a proposal to deal with one or more generators with potential mkt power: they should have caps on bid prices. David proposed some market rules to deal with specific circumstances. It was generally accepted that demand side response should be used to mitigate market power. Other questions on how demand side bidding shold be operationalized (Mike: are there rules for DSB as part of the MISO Market Rules compendium?) Second Presenter - from WPPI. He raised serious concerns about potential market power in the region (Michigan Peninsula). Should utilities have approval to sell at market based rates? How should ATC be calculate to take into account counterflows? Issue is more pertinent until RTO enter into day 2 phase. Presenter's proposal, which faced a lot of resistance, was to assume that all Gs have market power, unless they prove otherwise (except must run agreements for reliability purposes). Roberto disagreed: this goes beyond MISO's authority. RTO has to work with IMM if market power is suspected. Dynegy requested David to further explore the situation of must run plants. David asked whether or not we had filed our position on MM for MISO. Mike: you may want to send him a copy, just as a courtesy. LM
MISO Meeting last week
Here are the meetings that I have scheduled for the balance of November at ERCOT/PUCT: November 16 Protocol Revision Subcommittee. No voting seat, however, any attending can vote, limited to one vote per company. November 19 -- ERCOT Board Meeting. No Voting Seat, (until Jean wins one next month).
FYI PUCT/ERCOT Dates
Jim I am working on the questions for Ashley Brown. I should have a draft tomorrow, to be checked by Paul. In the meantime: 1) I am examining the currrent NGC system operator price control and incentive schemes under NETA. It is a radical change from the previous regulation. I would say it is a sophisticated piece of PBR. It includes penalties and incentives on internal and external costs (e.g. balancing) This document clearly states that the system would move away from central, merit order dispatch and would become much more self-dispatched. As a ramification, T rights would be defined on a pnysical basis. (far from our LMP, physical rights model). Your suspicion about NG proposal was right on targed 2) As part of the definition of Profit-RTO (which I think lends itself to multiple interpretations), I prepared this simple graph. In one of the questions we shoud ask Ashley where do they see themselves in the end-state. My feeling is that the Southeast Mediation Report advocated for stage II, NGC is stage III and the "textbook" RTO is stage IV.
National Grid
Gloria, Jim and Harry; Thanks for pulling us all together on Monday. We look forward to working with your group on merging the State Licensing and Utility Agreements into a common area, in order to keep the organization informed and up to date. I wanted to re-cap just a bit. The Services Group has state licensing responsibility for Gas and Power for EESI and EEMC. We handle new licensing and renewals. We are on an "auto-reminder" distribution from EES legal, Heather Mathis for renewals/reporting. We physically house all documentation relating to licensing on our floor. We currently publish and distribute as needed State License status report which identifies where we are licensed and what our license # is. The Services Group works directly with Gloria for utility agreements, as we are one of many groups who she obtains sign-off from and/or information in order to execute agreements and State Licensing information is critical to her processes. Gloria and I met yesterday to discuss next steps. We are working together to provide the following. 1) Matrix of Executed Agreements which includes: State, License #, UDC, Agreement Type, Signatory, Date Issued, Expiration/Renewal, Security Requirements. (2 Weeks) 2) Backfill each groups need for documentation - provide copies of State Licenses and/or UDC agreements. (2 Weeks) 3) Identify the EES/ENE contacts sent to the State/UDC, update as needed, internally and externally. (2 - 3 Weeks) 4) Provide Summary information regarding State/UDC that can be placed on EES Market Central (2-3 Weeks?) 5) Ensure information is updated, published, organized and accessible to all interested parties. - Gloria has initiated creating binders that will be housed on the 47th floor - we will encompass State information with the executed UDC agreements. Gloria, please feel free to add anything I have overlooked. I've attached the contact list currently used when obtaining State Licenses. This should help identify other stakeholders who you may want to speak with. Regards,
State Licensing/Utility Agreements
Jim If you are able to provide this to Dan for the meeting I would appreciate it. He may not want to circulate it to the group. It is intended as a work product for attorney. This e-mail and the attachments were prepared at the request of counsel. <<NOTES FOR DISCUSSION.doc>>
Confidential for Dan Watkiss
Jim, Jose and Andy Here is a comprehensive list of the forums at NERC in which I participate. I will be glad to provide any help in allocating these responsibilites to Jose, Andy or whomever. 1. Market Interface Committee (meets 7 times per year) - appointed seat, is not transferable, will be resigned. Note - my term expires in June 2002 anyway 2. Interchange Subcommittee (meets every 2 months) - Chairman, is not transferable, however, there will be an open position for a marketer which can be filled by Enron, also participate on task groups under this subcommittee, Note - Dynegy has a member, Jason Cox 3. Congestion Management Subcommittee (meets every 2 months) - market rep, transferable, Note - Dynegy has a member, Vann Prater 4. Electronic Scheduling Task Force (meets monthly) - market rep, transferable, Note - Andy Rodriquez already participates as the TISWG Vice Chair 5. Flow Based Task Force - market rep, to be disbanded 6. EPSA-NAERO working group - dealing with the NERC vs EISB issues There are other NERC groups that follow my position as IS Chair and MIC rep which will not need to be filled.
Charles Yeung NERC Responsibilities
I thought that last night's call went well. I hope that it was useful for you. One action item that seemed to be emerging is for your negotiators to request certain information from the other side-perhaps as early as today. I am sharpening up a memo that suggests key information to request and a priority scheme for the information. I would like to review the draft with colleagues here before sending it to you in a couple of hours. If you can tolerate the delay, you might suggest to the negotiators that they hold off until you receive my memo before deciding exactly what to request. I am trying to keep things simple, but adequate to make some useful calculations. I am mindful that we may only get one bite at the apple.
Information Request
Rebecca, How is this going? Topics to be covered in the Texas Intrastate White Paper: 1. Current state of the Texas Intrastate Market 2. Areas for improvement 3. Proposed future state of the Texas Intrastate Market 4. Strategy for implementation 5. Actions for implementation 6. Appendicies: a. Form of transport contract b. Gas flows in Texas c. Basis price history
Texas Intrastate White Paper
Attached for your initial review are Enron Corp. comments on the Marketing Affiliate NOPR (RM01-10). As you will see, this is an incomplete, bare bones version and we can enhance the arguments once it is clear we all agree with them. Leslie has struggled mightily with this in light of the constant changes that have been going on and we are sure more changes will be necessary. Comments must be filed at FERC by December 20. In order to allow adequate time for a couple of redrafts and the concomitant reviews along with the other things that are going on, please advise me or Leslie of any suggestions, concerns or comments you have by COB MONDAY, NOVEMBER 26th.
Draft Comments on Marketing Affiliate NOPR
Jim, Have you had any chance to look at the information I sent to you regarding my attending classes to complete my degree? I am about halfway through my first class, and want to make sure Enron is onboard with me doing so. Thanks,
Educational Assistance
On Friday, November 16th, the UDCs submitted their joint plan for implementing the suspension of direct access. Parties have until, Wednesday, November 28th, to comment. The following are proposed implementation rules for which the UDCs seek Commission approval: 1. A DASR can only be processed if the customer name appears on the ESP List submitted to the UDCs on October 5, 2001. 2. In order to submit an ESP List the ESP must have a valid ESP/UDC Service Agreement as of September 20, 2001 and , for ESPs serving small customers, they must have in effect a valid Commission registration as of September 20, 2001. 3. For a DASR to be processed for a residential or small commercial customer account, the ESP must be able to demonstrate that the required third party verification took place prior to September 20, 2001. 4. Customers should not be allowed to switch from one ESP to another after September 20 unless the new ESP had a valid ESP- customer contract in place on or before Sept. 20th. 5. Seamless moves within a UDC's service territory will be allowed. 6. For customers on bundled service as of September 20, 2001 (but still under a DA contract), the UDCs are proposing not to allow such customers to process DASRs even if their names are on the October 5 list. 7. If all accounts of one ESP transferred to another as a result of a merger, then the situation is okay because no new DASR would be required; requests for one customer to switch from one ESP to another only allowed if the new ESP-customer relationship had a contract prior to Sept. 20, 2001. 8. Changes in customer identity allowed on case by case basis (e.g., if a customer changes its type of business it would not be allowed). 9. One customer can not transfer or assign its direct access service rights to another. 10. Processing of DASRs submitted for customers who attempt to opt into a community aggregation program after the suspension date should not be allowed. In addition to the above, the UDCs proposed three additional options for implementing the suspension. 1. The Commission should impose a DASR cut-off date (received and accepted). 2. If the Commission does not impose a strict DASR cut off, it should require that any ESP which wishes to have a DASR processed after the cut off to submit their account specific DASR information and ESP contract to the Commission along with an explanation of why the customer is eligible to receive DA. The UDC will not process the DASR until it receives an okay from the Commission. 3. The ESP certifies through an affidavit that a particular DASR was associated with a contract in existence on September 20, 2001 (the UDCs set forth a proposed affidavit.) If you have any questions, please call Jeanne
Implementation of the Suspension Direct Access -- UDCs' Plan
Comments on the draft generator interconnection products and studies are due to FERC by NOON on Friday, November 23rd. They are asking that comments be posted to the intranet site. A copy of the draft is attached. - gen_ic_products_services- Lucas changes.DOC
Comments on Draft Generator Interconnection Products and Studies
Attached are draft RTO comments. The comments reflect EPMI's views on RTO development, given the Commission's apparent recent changes in position on the number of RTOs to be created. We urge Right Sized RTOs without choosing a number. The comments reflect input from Christi, Dave Perrino, Steve Walton, Mike Roan, Andy and Charles. Please review the sections where you have had input to make sure we adequately reflected your points, but please also review the entire document and let us know your thoughts. I'm still filling in cites and Bernadette will be working on the formatting, but the document is hopefully in pretty good shape. There is no filing deadline for these comments, but we would like to submit them on Monday if possible. It shouldn't take more than an hour to review. In sending your comments, please "Reply to All" so everyone receives your comments. Thanks for everyone's help.
RTO Comments
Linda: Jim asked me to send this to you so that you can follow and update the status of what FERC proceedings are pending, when things are due, etc. It needs to be updated constantly, but I will try and send you a note (or just an updated version) when things change. Let me know if you have any questions. Sarah
Timeline for FERC Proceedings
On November 14, 2001, SCE filed an advice to establish the ratemaking necessary to implement a number of regulatory components included in its October 2nd Settlement with the Commission The settlement agreement described the operation a new account termed the PROACT that the Commission will establish by order. The advice letter provides the structure and operation of the PROACT, The beginning balance of the PROACT will consists of the unrecovered procurement related obligation as of September 1, 2001. Beginning on Sept. 1, on a monthly basis, the following amounts will be recorded in the PROACT: (1) SCE's Surplus (recorded revenues minus recoverable costs); (2) all refunds related to procurement related liabilities; (3) securitization proceeds, (4) interest expense. The advice letter provides a detailed explanation as to how SCE's surplus and recoverable costs will be calculated. In addition, the advice letter addresses settlement rates. SCE notes that, under the Settlement, the Commission agreed to maintain electric retail rates for retail customers at no less than the Settlement Rates during the Repayment Period. Settlement Rates are defined in the Settlement as " gross electric retail rates (including surcharges)". In its advice letter, SCE proposes to define gross electric retail rates to mean the system average rates. By defining it that way, the Commission can change the revenue allocation between rate groups, as well as effect some rate increases/decreases in certain rate components as long as such revisions do not result in a change in SCE's system average rates. SCE has asked for a September 1, 2001 effective date for the advice filing. Under standard procedures, protests on the filing would be due December 4th. SCE has asked for an accelerated schedule of November 28. To date, as far as I am aware, it has not been granted. Please let me know as soon as possible if Enron would like to weigh in on this advice filing. Jeanne
SCE Advice Letter to Implement Settlement with Commission
Before I took on the ERCOT responsibilities, I was working with other EPSA members in preparation for the upcoming DOE sponsored forum to develop a wholesale electric standards setting organanization. Since my move, it is likely that I will not be attending this workshop. I have been an instrumental part in pushing for the formation of the wholesale electric quadrant of EISB. Although I have not committed to making a presentation at this workshop, there was a possibility that I would be speaking on behalf of EPSA. The meeting is a critical juncture for the EISB vs NERC showdown. NERC will likely present its latest restructuring proposal which includes a 9 sector model. I and other EPSA members have been advocating much fewer sectors for EISB. A key point of the NERC proposal is that it may be able to accomodate an EISB approval process for standards. This is imporatant in that it may be able to resolve the dichotomy between NERC expertise/infrastructure and EISB's reknowned (including FERC) consensus building process. NERC could retain its standards development expertise, however, lose its biased voting process. I think it is important to have coverage for this meeting, either, by someone on the NERC team or someone close to NERC in Washington. The likely outcome of this meeting is a solidifying of industry support for either the NERC approach, or a clean slate EISB approach. Jim would like for us to have a conference call to discuss. I am available Monday, Wed, and Fri. Charles X30348
DOE Meeting Dec 7th
Very quick and dirty--not even fully proofed. But wanted to get something out for folks to shoot at. Let me know your thoughts. Sure I've missed about a million things and mucked up about the same amount. Happy Thanksgiving.
DASR Suspension Rules
Talked to Pescetti yesterday. Prior to returning my call, he had received the information that Joe Kelliher had already been appointed to the open Republican spot, and therefore understands that there's no longer a Republican seat to run for. We had a good talk. I told him that reinstating DA was the most important energy issue facing California. Best,
Pescetti
The following reports have been waiting for your approval for more than 4 days. Please review. Owner: Luiz T Maurer Report Name: LM 111301 Days In Mgr. Queue: 8 Owner: Susan J Mara Report Name: SJM11152001 Days In Mgr. Queue: 5
Expense Reports Awaiting Your Approval
The following reports have been waiting for your approval for more than 4 days. Please review. Owner: Luiz T Maurer Report Name: LM 111301 Days In Mgr. Queue: 9 Owner: Susan J Mara Report Name: SJM11152001 Days In Mgr. Queue: 6
Expense Reports Awaiting Your Approval
The information transmitted by the following e-mail is intended only for the addressee and may contain confidential and/or privileged material. Any interception, review, retransmission, dissemination, or other use of, or taking of any action upon this information by persons or entities other than the intended recipient is prohibited by law and may subject them to criminal or civil liability. If you received this communication in error, please contact us immediately at (202) 785-9100, and delete the communication from any computer or network system. Although this email and any attachments are believed to be free of any virus or other defect that might negatively affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and no responsibility is accepted by the sender for any loss or damage arising in any way in the event that such a virus or defect exist.
SMUD Response to ISO-DOE-1 PART 1 of 2
Yesterday, the European Commission adopted a climate change package, which includes a draft directive on emissions trading, an instrument of EU ratification of the Kyoto Protocol and policies and measures to reduce greenhouse gas emissions. Please the attached press release outlining the package. Major provisions of the draft emissions trading directive include: The emissions trading scheme has two phases -- first phase (2005 - 2007), second phase (2008 - 2012)
EU emissions trading directive and climate change plan released....
The September 26, 2001 order had established December 10, 2001 as the date for "Simultaneous rebuttal testimony on November 6, 2001 evidentiary presentations." On November 6, 2001 several parties had filed responsive testimony on issues relating to other sources of cost recovery, including NOx emissions and startup costs The November 23, 2001 order said these issues will be addressed at the February hearing on issues 2 and 3. This combination left Staff uncertain as to when rebuttal testimony on these issues is to be filed. We called Bryan Clark, Judge Birchman's new law clerk, and asked when we are to file rebuttal testimony. He checked with Judge Birchman, and said we are to file all rebuttal testimony on these issues on February 6, 2002.
rebuttal testimony schedule clarification
Have we disclosed the $125 million SCE number in any other filing that you can recall that is public. At the FERC maybe? We are considering including it in our stip to be filed at the CPUC. Peggy, would this be a problem?
SCE Stip
Judge Birchman's November 23rd Order sets January 8, 2002 as the hearing date for 202(c) issues. As we discussed during the November 20th phone conference, the witness for the State Water Contractors, Richard Jones, is not available for cross examination on January 8th. As we agreed during the phone conference, Mr. Jones will be available during the December hearing dates for cross examination on the 202(c) issues. Since he will be traveling in for the hearings we need to set a date within the December hearings when the cross examination (if any) will take place. We suggest that he be available on December 21st, the last day of the December hearings. If anyone prefers that he be available on a different date, please advise us by the end of the this week (November 30th) so that travel plans can be made. Sincerely,
Additional Schedule Clarification - 202(c) witness availability
Earlier this year, the Joint Legislative Audit Committee instructed the Legislative Analyst to prepare a fiscal and policy analysis of the California Power Authority. That report was released today during an informational hearing. I have forwarded a copy of the report to Jeff. I will forward a brief overview by facsimile to San Francisco, Houston and Portland. The highlights of the report are as follows: The focus of the CPA has shifted dramatically since its inception. The CPA originally focused on purchasing peakers whereas it is now focused on DSM. There are several areas that may warrant additional legislative activity: Provide legislative oversight Establish a mechanism for using revenue bonds Clarify the CPA's eminent domain authority Clarify the power of the CPA to invest in transmission Clarify the relationships between all California power agencies In addition, I spoke to Energy Committee staff today about next year's possible activities. In their estimation, the Legislature may be forced to address some of the items in the LAO report regarding the CPA. In addition, they have to do something regarding the bonds because SBX2 18 was never sent to the Governor because of his threatened veto. They expect no bills authorizing grants or incentives due to the state's budget crunch. Senator Bowen is still interested in DA and green DA, but they see this as a second tier item. The future of DA will be dictated in part by how the CPUC addresses the undercollection.
Legislative Update
Jim and Bob, here is the billing info that you asked for. I am out west taking depositions in your California case for Ray. If you have any questions, please call my voice mail and I shall get back with you as soon as I can. Thanks. - PNWBudget.doc
PNWrepresentation
Some of the questions we sent in our data requests about an hour and a half ago were derived from protected material. Please do not give them to anyone who has not signed the non-disclosure statement in this proceeding. My apologies for forgetting the note at the time I sent them.
Staff discovery for State Water Contractors
With all the ongoing changes that have been taking place around here and the known fact that some of us will be going our separate ways, it is my hope that we can all keep in touch in the future. I would like to put something together for the group, so please provide me with your contact information, so I can prepare the "Let's Keep in Touch" contact list for Government Affairs. Below is the contact information that I would like to receive from each of you. Once I have put the list together, I will forward it to everyone. Name: Home Address: Home Phone#: Home E:mail address: New Place of Employment (if available): Work Address: Work Phone Number: Work E:mail address: Cell #: Other Family Contact Information: Please provide current (or future if known) address and phone number. Thanks to all!!! !
"Let's Keep in Touch" Contact List
Attached are the following: 1. Staff's 2nd Set of Data Requests to LADWP 2. Staff's 2nd Set of Data Requests to the City of Pasadena - data request 2 to LADWP.wpd - data request 2 to Pasadena.wpd
Staff's 2nd Set of Data Requests to LADWP and City of Pasadena
Sorry I have been hard to reach. We are in the midst of the CA Iso case depositions. Enclosed are the invoice numbers. Please call if you want to discuss further. - PNWBudget.doc
PNPINVOICE
This is good news, if true; but I must take exception to any characterization of FERC action on governance as "prompt." That point passed many, many months ago. State, FERC Pressure Builds To Make Cal-ISO Board More Independent Political pressure to dismiss the current independent system operator (ISO) in California and replace the board with new members appears to be reaching a head. Industry insiders believe that an order from the Federal Energy Regulatory Commission (FERC) to mandate a new board is imminent and cite the actions by the ISO during the energy crisis and in the months that have followed as reason for FERC commissioners to act promptly. A bombshell was released last week by Rep. Doug Ose (R-CA) in a letter to FERC accusing the ISO and the California Department of Water Resources (DWR) of acting in tandem to such an extent that their dealings appear to be in collusion and prohibitive of actual independence. Attached to the Ose letter was a confidential memo from energy advisor Eric Woychik to then ISO Board Governor Mike Florio. Ose states in his letter to FERC that the memo "clearly illustrates the perils of a lack of independence" from an ISO. The memo states that "current DWR practices cause very large additional costs for purchases on behalf of UDC customers and this also compromises reliability." There are three scenarios outlined in the memo that detail violations and increased costs for customers as a result of the alleged interdependence between the two entities. At one point the memo's author acknowledges the gravity of the situation by stating, "If the press, Legislature, or FERC get wind of this, I think we are toast." Woychik tells Electric Power Alert that he was trying to impress upon the ISO that "if this gets loose [the ISO officers and board members] should be very embarrassed." FERC Chairman Pat Wood tells Electric Power Alert that the commission "currently has a motion before us to address" the independence of the ISO. A source monitoring the situation says, "We are hoping that FERC says the California ISO is not an independent board and comes out and says 'You shall appoint an independent board.'" Insiders note that in the past month FERC has issued two orders adjusting Cal-ISO behavior and is actively taking a role in rectifying energy oversight in that state. In their Nov. 20 commission meeting, FERC ordered the ISO to treat the DWR without preferential treatment and like any other market participant. FERC, says one informed California source, needs to "kill the current ISO board, dismiss the lot." "This is fantastic. It's the first appropriate action to take place," says a California energy consultant about FERC's recent order. According to the source, this indicates that FERC will take the next step and require actual independence from the board. Should FERC make that move, the insider says, they have a precedent to base the action on. "They did it with PJM early on. They rejected two of their proposed boards because they said they weren't independent enough." Florio, who is now with the consumer organization The Utility Reform Network (TURN), claims that the ISO is more independent than previous boards and has local oversight. "I think if you asked the average Californian whether an entity like the ISO should be appointed by the governor or 'independent' under criteria set by FERC, I think the vast majority would say governor appointment is preferable because there is some political accountability that way," he told Electric Power Alert. He goes on to state that, having served on the ISO board and the previous stakeholder board, he is in a position to "say unequivocally that the current board gives ISO management much more free rein than the old board ever did." According to the energy consultant, Californians "have an ace up our sleeves" to force independence on the ISO board if FERC does not act swiftly. California State Senator John Burton (D) pushed through legislation two months ago that, the source says, will ensure an independent board is in place in a few months. "An independent board will be chosen next year whose members will be subject to California state [Senate] confirmation," says this source. Sources point to the ISO's failure to follow up on the suggestions made in the memo that would have served to divide the ISO and DWR as examples of the co-dependence between the two. A source familiar with the ISO dealings says, the "ISO felt that it made more sense to try to correct the problems rather than spend its time quantifying the effects." A FERC insider confirms that there have been commission level "discussions about the Cal-ISO for some time," and that they have fielded a number of complaints against the ISO for alleged lack of independence. FERC is taking a long break and will not hold another commission meeting until Dec. 19. The sunshine notice that reveals the agenda items for discussion will not be released until Dec. 12, but insiders believe that the political pressures on FERC, the fact that they have recently been issuing orders to the ISO, and the Woods' acknowledgement that it is an item before FERC indicate that they are going to be discussing the item, if not acting on it, at the next meeting. Source: EnergyWashington.com
State, FERC Pressure Builds To Make Cal-ISO Board More Independent
As discussed on today's conference call, in an effort to satisfy the Presiding Judge's request to remove the protected status of materials, Mirant proposes the following action concerning exhibits it filed Nov. 6 pursuant to the protective order in the EL00-95 proceeding (namely, MIR-3 and MIR-4) : Mirant proposes to formally withdraw its submission of the protected versions of Exhibits MIR-3 and MIR-4, leaving the redacted versions of these exhibits as the only versions of MIR-3 and MIR-4 in the record. As noted on the conference call today, Mirant believes that the limited amount of material redacted from these exhibits (certain PPAs pursuant to which Mirant incurred emissions costs) is not relevant to the issues in this proceeding. If any party objects to or has concerns about Mirant undertaking such action, please let me know no later than November 28, 2001 at noon, EST. Thanks much,
Mirant Protected Materials
ELECTION 2001: THE CALM BEFORE THE STORM Reapportionment... A new governor... The 2002 election... What's in the fut= ure for Pennsylvania politics? Presentations by Senator Jeffrey Piccola, Senate Majority Whip; Representat= ive Michael Veon, House Minority Whip; Professor G. Terry Madonna, Millersv= ille University Luncheon Program - December 3, 2001 - 11:30 a.m. Harrisburg Hilton and Towers Regular Admission - $25.00/PennFuture Members - $15.00 Event followed by an Open House with refreshments in our Harrisburg Office = from 4:30 - 7 p.m. R.S.V.P. by Nov. 28 or call 1-800-321-7775. You can also register online un= der "Events" at www.pennfuture.org or reply to this email.
PennFuture's E-Cubed - Governing a Northeast RTO
Rules governing suspension of DA and threats of retroactive suspension We have helped assemble a coalition of ESPs and business customers to get the most liberal rules possible (e.g., customers can renew DA contracts, customers can add facilities if contract permits, ESPs can assign contracts to other ESPs with consent of customer, ESP and customer can modify existing contract provisions.) The ESP coalition that we're a part of will file comments on Wednesday on how the suspension rules ought to work. Retroactively suspending DA remains on the table for debate and remains a threat. But support at the Commission for retroactivity has diminshed considerably and most think that the likelihood of retroactivity is low at this point. One Commissioner--Carl Wood--continues to express support for pushing the date back, however.
California Update--11.26.01
The following reports have been waiting for your approval for more than 4 days. Please review. Owner: Luiz T Maurer Report Name: LM 111301 Days In Mgr. Queue: 13 Owner: Susan J Mara Report Name: SJM11152001 Days In Mgr. Queue: 10
Expense Reports Awaiting Your Approval
Please be advised that Les Starck, Director of Federal Regulatory Affairs at Southern California Edison Company, has signed a Non-Disclosure Certificate in Docket No. EL00-95; also, Richard Saas of Steptoe & Johnson LLP, representing Southern California Edison Company, has signed a Non-Disclosure Certificate. Please contact me if you would like a copy of the Non-Disclosure Certificates.
EL00-95 Non-Disclosure Certificates of Southern California Edison Company
Elizabeth: Rick asked me to contact you regarding PAC checks. If we are still making contributions, I would like to request a check for my brother City Council member Carroll Robinson. He is running in the Democratic primary for the 25th Congressional District to replace Ken Bensten, who is running for the US Senate. Please advise. Marchris
Enron PAC
Jim: I just wanted to write you a note of support in what I am sure are some very trying times. Ken and I remain fans of yours and fully appreciate everything you have done for CAEM. Let us know if we can be of any assistance to you. Jamie Jamie Wimberly President CAEM
Note From Jamie Wimberly
Please note and inform your groups that Teresa Mihalik (5-7749) or myself (6-6363) should be the point people for any margin calls issued to EES. We will work with Legal and Regulatory Affairs to validate rights to such calls. Additionally, we will work with Trading to validate requirement calculations. Thank You
EES Margin Calls
Here is Staff's second set of data requests to Portland General Electric Company in WordPerfect and Rich Text Formats. The requests came from protected documents so please do not give them to anyone who has not signed the non-disclosure statement. - datarequest 2 to Portland (rich).rtf - datarequest 2 to Portland.wpd
Staff discovery to Portland General
The deposition of Dr. Charles J. Chicchetti will be taken at the offices of Steptoe & Johnson LLP on Wednesday, November 28, 2001, beginning at 9:30 a.m. Details Proceeding: San Diego Gas & Electric Co. v. Sellers of Energy and Ancillary Services, Docket Nos. EL00-95-045 et al. Deponent: Dr. Charles J. Chicchetti
Deposition of Dr. Chicchetti -- Details
There will be a California Contract meeting on Wednesday, October 31 at 3 pm in ECN 878 (Janet Dietrich office). If you supervisor is unable to attend please advise. Thank you
California Contract Meeting
This email message revises our previous message in two ways: (1) it corrects the spelling of Dr. Cicchetti's name and (2) it provides a call-in number for the conference room in which the deposition will be held. We apologize for the misspelling of Dr. Cicchetti's name; unfortunately, we copied the misspelling from the transmittal letter that accompanied Dr. Cicchetti's testimony. The deposition of Dr. Charles J. Cicchetti will be taken at the offices of Steptoe & Johnson LLP on Wednesday, November 28, 2001, beginning at 9:30 a.m. Details Proceeding: San Diego Gas & Electric Co. v. Sellers of Energy and Ancillary Services, Docket Nos. EL00-95-045 et al. Deponent: Dr. Charles J. Cicchetti
Deposition of Dr. Cicchetti -- Corrected Details
Attached please find the above-referenced documents. We are supplementing our initial responses by adding additional workpapers in response to data requests 8, 9, 10 and 12 and by responding to data requests 15 and 16 with respect to Dr. Carolyn A. Berry. <<Cover for supplemental response.doc>> <<Supplemental Responses to Duke.doc>> <<Calculator_MCP.zip>> <<Testimony and Papers List.doc>> <<economic note1.doc>> <<Infocast congestion speech.rtf>>
Supplemental Responses of California Parties to Duke Energy's Sec ond Set of Data Requests
The following reports have been waiting for your approval for more than 4 days. Please review. Owner: Luiz T Maurer Report Name: LM 111301 Days In Mgr. Queue: 14 Owner: Susan J Mara Report Name: SJM11152001 Days In Mgr. Queue: 11
Expense Reports Awaiting Your Approval
Today FERC issued the following draft orders: NYISO TEP and Bid Cap (ER01-3001): Commission granted NYISO's request to extend the currently effective $1000/MWh Bid Caps on certain NYISO adminstered markets, and to extend its Temporary Extraordinary Procedures for Correcting Market Design Flaws and Addressing Transitional Abnormalities, until the Northeastern RTO is operational. The Commission ordered NYISO to narrow the scope of the TEP, and to file tariff sheets doing so within 30 days. NYISO proposed virtual bidding procedures (ER01-3009; ER01-3153): Tariff changes to implement virtual bidding were approved. The changes would allow market participants to bid non-physical generation and load into the day-ahead market and settle the bids in the real-time market. Also accepted were NYISOs Market Mitigation Measures to address gaming or market power strategies that might emerge as a result of the virtual bidding. NYISO - Cost responsibility for new interconnections. (ER01-2967): Tariff changes allocating cost responsibility for interconnection facilities. The provisions allocate to developers 100% of the cost of facilities necessary to physically interconnect the project. Additionally, developers are allocated the coswts for transmission system upgrades that would not have been made "but for" the interconnection, minus the cost of any facilities that the NYISO's regional plan dictates would have been necessary anyway for load growth and reliability purposes. ISO-NE - Interim Bid Caps (ER01-3086): Commission approved extension of bid caps until the Northeastern RTO is operational. Calpine v. ISO-NE (EL01-124): Commission granted complaint by Calpine and Mirant, finding that ISO-NE has amended Market Rule 5 to exclude external contracts from setting the energy clearing price, in violation of a Commission order. If you need further information, please let me know. Susan Lindberg x30596
Orders issued today in NYISO and ISO-NE proceedings
Today the Commission issued the following orders pertaining to transmission interconnection: AEP -- Order granting rehearing on issue of interest on transmission credits for network upgrades (ER01-2163): Commission reversed its July 26 decision in which it refused to require AEP to pay interest on credits for system upgrades. The Commission noted that it will be initiating a generic rulemaking in the near future on interconnection procedures. However, in the interim, its policy is that "the addition of an interest payment in connection with system upgrades is appropriate."
Orders issued today on interconnection matters
Jim, Julie wants to hold a conference call on Tuesday, October 30th to discuss the possibility of designing and undertaking cost-benefit analyses to support FERC's RTO policies. She wants to have you on the call & would like to know when you would be available. Anytime after 1:00 p.m. EST would probably be best for her. If you could let me know ASAP I will be able to send out an email to those she thinks should be on the call. Thanks, Jim. Jackie Gallagher
Conference Call on Tuesday
Jim, Attached is the note to CAEM related to the "Disco of the future" paper. It includes comments of the team. I will be in a course Monday and Tuesday but I will connect at night. You can leave me a message at 703.549.6080 room 434. Regards,
Disco of the future
FERC has issued a Notice of Extension of Time to file comments on the Notice of Proposed Rulemaking (NOPR) on Standards of Conduct for Transmission Providers. The due date for comments is now December 20, 2001. The Notice is attached. - RM01-10.00B.doc
Affiliate Code of Conduct NOPR Comments- Extension of Time
INTERNAL COMMUNICATION REGARDING DELAYS IN RETAIL COMPETITION IN TEXAS October 29, 2001 The main purpose of this memo is to inform EPMI and EES commercial teams regarding the implementation status of retail competition Texas, particularly in non-ERCOT regions, which include parts of the areas served by the following utilities: ? Southwestern Electric Power Company (SWEPCO) and West Texas Utilities Company (WTU) - both in the SPP region ? Entergy Gulf States (EGSI) - in the Energy-SERC region As most of you probably have heard, the Texas Utility Commission has been examining, in the last few weeks, the readiness to implement retail competition in those areas. The Public Utility Commission of Texas (Staff) has filed petitions seeking a determination of whether market institutions are ready for retail competition in above areas, to start January 01, 2002. There is a concern among the Commission and many other participants that non-ERCOT-Texas regions are not ready for competition. This concern has two major causes: - Lack of a vibrant, efficient wholesale market in those regions, where newly established REPs could have full access to others suppliers, on a non-discriminatory basis - Lack of success in the retail pilot programs developed in 2001 - no alternative suppliers and no customer shifting at all; a recent hearing has confirmed most REPs absolute lack of interest in those regions - at least for the time being SPP Last Week, the Public Utility Commission decided to delay competition in SPP Texas. Or, more accurately, "to delay customer choice", in the Commission preferred language. Enron, who was requested to file a testimony, opposed to any delays, under the argument that SPP is not a "perfect market", but REPs could trade in this market as other marketers do. No final dates have been established yet. However, one estimates that the delay may vary from 12 to 18 months. The Commission has established some clear actions and milestones before retail competition is implemented: - Support SPP to begin wholesale market operations, which involves refinements and upgrades in a few of existing systems, such as settlement; - Reform in SPP Tariffs and implementation of a market based congestion management; - Continue the pilot, attract new competitors and open the market. As part of this effort, the Commission created a Southwest Power Pool Market Readiness Implementation Project (Docket # 24869) to develop the necessary steps to transition to full competition, identify milestones, monitor progress and report to the Commission on a regular basis. Enron will be supporting this effort. SERC SERC regions bear resemblance with SPP, in terms of Commission's intent to delay competition. The most important difference is that the incumbent utility, EGSI, an Entergy subsidiary, has strongly supported timely implementation. The Commission fears that Entergy will benefit from its "monopolistic" position in the region, in the absence of other REPs. No final decisions have been made yet. Entergy Gulf States, in conjunction with the Commission Staff and other interested parties have gone through a settlement process, whereby retail competition will be delayed until September 15, 2002. The subject is still being examined by the Commission and no final decisions have been made. However, we expect the Commission to approve the Settlement Agreement, therefore delaying competition until September 15, 2002. ERCOT All the discussion about delays in competition focuses on non-ERCOT Texas only. There are rumors and ongoing discussions about delaying competition in ERCOT-Texas, which is scheduled to take place on January 01, 2002. For example, Nancy Hetrich from Enron, will be attending the Legislative Oversight Committee on Friday, November 02. She will be appearing in her capacity of Chair of RMS Sub-Committee. Contrary to non-ERCOT, there is a strong support from most industry participants to have retail competition on time. Besides, the results from the pilots were successful and ERCOT is supposed to provide vibrant wholesale competition. Therefore, unlike SPP and Entergy, there should be no material reasons or fears to delay retail competition in ERCOT-Texas. We will keep you apprised as things evolve.
Retail Competition In Texas - Internal Communication
Jeff - Please review the following report and let me know if their are any recent developments that I should be aware of while preparing Jim's November report. Perhaps you can update me on the negative CTC claim. Thanks so much for your help, Bryan
Monthly Update
Sue - Would you please review the following report, and advise me of any updates on projects, or additional projects you may be working on. I am preparing a November report for Jim Steffes, and would like to have complete and accurate information about the projects you are involved in. Thank you very much for your help, Bryan
Monthly Update
Paul - Please review the following report, and let me know if there are any new development on the projects that you are currently working on. I am preparing Jim's November update report, so please let me know if there are any other new projects underway that should be included in this summary as well. Thank you very much for your help. Thank you, and if you have any questions, please call or send me a note, Bryan
Monthly Update
Leslie, I have just completed reviewing the APS filing. This paper explains much of the observed behavior of APS during the DSTAR (WestConnect) proceedings over the last several months. The paper is so full of market "scare" tactics it seems appropriate to be reading it during the Halloween season. The token effort of procuring 270MWs starting 2003 and ramping up to 1670 MWs in 2008 is ridiculous. The statements that APS generation is somehow more secure and reliable than any generation not owned by APS, using the same grid, and that non-APS generators have little if any responsibility to the "Full-Requirements" customers are all beyond belief. The mis-characterization of the problems experienced in CA, OR and WA and the contemptuous citing of "experts" seems typical of the APS distain for deregulation. The entire filing is more like a guaranteed plan to recover the "Billion" dollars invested by APS, with convenient adjustment clauses every three years. As you noted earlier today, the Commissioner of the ACC may be more concerned over the APS stock price than truly encouraging open markets and retail access and what better why to help the stock price than to award APS a 14 year contract...look at what the Defense Department did for Lockheed!!! I spoke with Chris Lackey who met earlier this month with Pinnacle West's (APS subsidiary) head of Trading who told him that PinWest is very conservative (as stated in the filing), their primary function is to support APS and they saw no real opportunities to conduct business with Enron. However that could change if their petition is denied. Please let me know how you'd like to proceed. If this is approved by the ACC I assume it must then go to FERC, do we have an opportunity to intervene with the ACC and/or FERC in regards to this filing? If we do, I'll be happy to help you with composition of the documents. Kind Regards,
Partial variance to AAC R14-2-1606(b)
David Doot left me a message that he had not heard back and he was expecting our proposal yesterday (which we had not told him). He also said that the bonding company was "rumbling" that it was not going to pay. I do not know what their obligation is to pay, but I would think that "rumbling" is not default, yet. Jim S. is going to call David Doot back this afternoon.
NE ISO call from Doot
Attached is our updated forecast. Note that for Monday the largest proposed distribution is for California Gas through the end of the month. That decision is currently being evaluated by the business with a final decision on Monday. A minimum of $250,000 for Ca. gas will be required. Please have the cash committee approve the entire balance of the month contingent on business sign-off. Thanks
Update 12/14/2001
Hello, I just wanted to say I hope your weekend went well. Payton is growing like a weed. He is now tickalish. He also has learned how to scream, now that's about all he does. He has a walker and he loves to sit in it and just talk away. He is such a happy baby, everyone enjoys him and loves to see him, he's so pleasant.
Payton