text
stringlengths
1
4.46k
employee_id
stringclasses
45 values
Then we can decide if, and how, we choose to respond to the PUC staffer.
dev33
Thanks very much for your help.
dev33
Best, Jeff
dev33
will call shortly.
dev33
It's always darkest before the light (though it may not get light in our lifetimes).
dev33
Looks great.
dev33
Couple of points: 1) Despite promises to the contrary--common theme in this exercise--Burton (as I understand) did not remove the condemnation (expropriation?) language from ABx6, i.e., the state can just take your power plant (or anything else, it seems), if it has the inkling.
dev33
That's an egregious provision in ABx6.
dev33
2) I don't recall trying to amend ABx18 to say, "pay them their PX credits."
dev33
I understood the tactic to be--get a prospective, date certain end to the freeze in the bill, which then gives us very firm legal ground on which to seek and get the money owed to us.
dev33
We could seek the additional language, but if putting date certain does the same thing without attracting a lot of attention, may be a preferable path.
dev33
3) Forgive me if I've just overlooked it, but I got wind of a bill by Ms Migden (ABx8?) that gives one whole heckuvalot of new power--power usually left to FERC--to the CA Electricity Oversight Board.
dev33
Anyone know about it?
dev33
We may want to get details for inclusion in the discussion with Delainey.
dev33
Best, Jeff
dev33
To Jim's last point.
dev33
I understand that the good 'ol utility system was often operated with little regard for basic economic principles, but there's something in this that seems very odd and difficult to assess, and it seems to always be tied to this notion that "California is a net importer, even in the winter."
dev33
I'm going to start with the economics and then let folks describe why it seemingly doesn't apply in Western electricity markets.
dev33
Just about every theory of economics and trade would lead to one conclusion: If California closes it's doors the other Western states will pay higher prices for power and/or face increased threats to reliability.
dev33
I'm struggling to try to determine why these basic principles aren't applicable to Western power markets.
dev33
I understand that the PNW is a very complex place and that the reasons could be embedded in the arcane structure that has developed over the years.
dev33
To keep it simple (though not necessarily accurate), I've confined the analysis to a world in which only the PNW and California exist.
dev33
The basic situation: The PNW peaks in the winter; California peaks in the summer.
dev33
Let's take two scenarios: 1) The West, less California, is so awash in electricity that even in its peak--the Winter--it still has power to send to California, i.e., it has so overbuilt it's system that it has persistent surpluses to sell to California.
dev33
Irrespective, there have (to my limited knowledge) always been sales from CA to the PNW during the winter, when the PNW is peaking.
dev33
The only conclusion that one can make, assuming that the PNW is awash in electricity, is that the PNW takes the power in California because it makes economic sense to do so.
dev33
That is, during the winter peaking months, it must be cheaper on the margin for the PNW to buy from California rather than produce itself.
dev33
Otherwise, it's difficult to understand why it would buy from California during this month, particularly if they're long.
dev33
As such, at a minimum, the PNW's electric bill will necessarily increase if California closes its doors.
dev33
2) Neither the PNW , nor California, has indigenous capacity to meet peaking load.
dev33
Therefore, the PNW must buy California's power during its peaking summer period, and California must buy power during it's summer peaking period.
dev33
In this case, not only will the PNW's bill go up if California closes its doors, the lights are likely to go because they'll be short power.
dev33
I realize that this is a simplistic model, and that there could be other legitimate economic factors driving the flows out of California to the PNW (e.g., transmission costs).
dev33
And again, I also realize that economics may not have traditionally been a driver in the industry.
dev33
But I thought it might be useful to get a common framework in place as a starting point for the question that Jim asks.
dev33
With that, I'll pose the question (understanding the simplicity of the model set forth above): Given that California sends power north--even if the PNW is long---how can California closing it doors not increase the PNW's cost of power?
dev33
Best, Jeff
dev33
Christian: Could you let me know as soon as possible if 1) the proposed decision that I faxed you yesterday is go to go, i.e., adequately addresses our concerns regarding creditworthiness or if 2) we want to recommend some additional provisions?
dev33
If we want to recommend additional provisions, could you let me know what those are?
dev33
I want to make a run at getting this deal done at the CPUC ASAP,and would like to push Peevey to get Davis to have the PUC pass it out at their next meeting.
dev33
But need to know if it's good as is or needs some tweeking.
dev33
Thanks very much.
dev33
Best, Jeff
dev33
Thanks very much for getting back to us.
dev33
So if I understand the bottom line: 1) the customer was mistakenly put back to SoCal (due to the dual service territory character of the customer's facilities), 2) the customer will be returned to our service, 3) the customer's contract with us expires on 5/31, and 4) the customer will have the option of re-signing with us, or returning to SoCalGas when the contracts ends on 5/31?
dev33
If I've confused anything, please let me know.
dev33
And thanks again for helping track down the info.
dev33
Best, Jeff
dev33
har-dee-har-har.
dev33
I mean, will we be celebrating in some fashion.
dev33
I'm scheduled to go to Houston--I'm not kidding--but if there's something planned, which I assume there is, then I'm going to cancel my trip to Houston, like pronto.
dev33
Ironically, Jeff
dev33
Eldon said that you were making dinner on Friday, the 9th, and that he was flying a plane to pick up Cameron and Rory in Carmel.
dev33
Have you guys spoken in the last few months!?!?!?
dev33
(kidding.) And don't worry about my birthday--that's not the issue.
dev33
It's Eldon's 80th--that's huge.
dev33
Friday is the 9th.
dev33
So I'm just checking in to see what's up.
dev33
My very strong inclination--for a variety of reasons, but Eldon's b-day is the biggest one--is to cancel.
dev33
Signed, confused
dev33
Thanks.
dev33
It would of course be easiest to make the calls and say "pass it out now, as is," but if more is needed to fix the credit issue, want to be prepared to tell them how the decision needs to be modified.
dev33
If it's fine as is, all the better.
dev33
Best, Jeff
dev33
Thanks again.
dev33
Mike, Here's the answer.
dev33
Please call me when you get a chance to discuss a response (if any).
dev33
Best, Jeff
dev33
I understand that there may be a need to give no quarter on this, but given the circumstances--i.e., we talk every day and time and resources are extremely tight--is it reasonable to temporarily suspend filling this thing out for the next 60-90 days?
dev33
Lemme know.
dev33
My sister just called and said that the earthquake in Seattle was 7.0.
dev33
That's big.
dev33
Best, Jeff
dev33
Sandi: Apologies.
dev33
I meant and forgot to mention on the 11:30 call that the pipeline group is having their annual customer meeting (VPs of large energy companies throughout the West and Midwest) at the Santa Barbara Biltmore on April 12th and 13th.
dev33
They would very much like to get Bill Keese to speak (preferably on the morning of the 13th, but the morning of the 12th would work as well).
dev33
They'd like Bill to discuss the energy situation in California.
dev33
They can cover however much of Bill's costs--if any--that the State of California allows to be covered.
dev33
The folks at the pipeline group asked if we could make the contact with Bill and see if he's available and willing.
dev33
Given your relationship, thought you might be able to check.
dev33
They're anxious to get someone lined up as soon as possible.
dev33
Feel free to contact Laura Lantefield directly at 402.398.7080.
dev33
Thanks very much for the help.
dev33
Best, Jeff
dev33
Hi.
dev33
I was trying to get a fix on whether there's something going on on the Friday of your Dad's b-day to see if I need to cancel the Houston trip.
dev33
What do you think?
dev33
Apologies.
dev33
The first version incorrectly left in some DWR credit issues and had a couple of other goofs.
dev33
Please discard and review and comment on this one.
dev33
But if you've already reviewed the other, no worries, since the attached is extremely similar (less the couple of goofs).
dev33
Thanks.
dev33
Lad can play both roles pretty effectively.
dev33
I'm assuming that the IOUs wouldn't be dumb enough to recommend something that would have an adverse effect on DWR's creditworthiness, but wanted to make sure you had a chance to review--just in case they're not as smart as I assume.
dev33
Thanks.
dev33
Jeff
dev33
I'd LOVE to.
dev33
Have class from 6:30 to 9:30......
dev33
Minor edit.
dev33
No big deal.
dev33