Message-ID: <4599780.1075863600443.JavaMail.evans@thyme> Date: Thu, 17 Aug 2000 06:55:00 -0700 (PDT) From: bruno.gaillard@enron.com To: sf.office@enron.com, marcie.milner@enron.com, paul.kaufman@enron.com, mary.hain@enron.com, tim.belden@enron.com, robert.badeer@enron.com, chris.foster@enron.com, frank.vickers@enron.com, samuel.wehn@enron.com, david.parquet@enron.com, greg.wolfe@enron.com, ginger.dernehl@enron.com Subject: 350$ Cal PX bid cap resolution - passed 8/16 subject to FERC approval Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Bruno Gaillard X-To: SF Office, Marcie Milner, Paul Kaufman, Mary Hain, Tim Belden, Robert Badeer, Chris H Foster, Frank W Vickers, Samuel Wehn, David Parquet, Greg Wolfe, Ginger Dernehl X-cc: X-bcc: X-Folder: \Robert_Badeer_Aug2000\Notes Folders\Discussion threads X-Origin: Badeer-R X-FileName: rbadeer.nsf Attached elow the artical is the Resolution ---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/17/2000 11:48 AM --------------------------- on 08/17/2000 11:41:33 AM To: bgaillar@enron.com cc: Subject: 2nd try...PX bid cap resolution RESOLUTION Please keep in mind, until the FERC responds, there will be no changes to our markets. (See attached file: resolution bid caps august 16.doc) Also FYI: Dow Jones Newswires CalPX To Ask FERC To Reduce Day-of, Day-Ahead Price Cap: Board Caves In To Political Pressure By Jason Leopold LOS ANGELES--The California Power Exchange, the spot market where electricity is bought and sold in the state, approved a measure Wednesday seeking federal authority to impose a $350 per megawatt-hour bid cap on wholesale power prices in its day-of and day-ahead markets. Members of the CalPX's board of governors admitted that the measure was approved as a result of intense political pressure being placed on the board by state lawmakers and Gov. Gray Davis. "Not approving this is political suicide," said CalPX board member Carolyn Keherein, who also serves on the board of governors at the California Independent System Operator. "We're not changing anything but the perception in the market." The CalPX current cap on wholesale power prices in the day-of and day-ahead market is set at $2,500, but that is only a technical limitation of their computer system and has had no effect on power prices. State lawmakers believe a price cap would stabilize high power prices being passed on to retail customers, most notably consumers in San Diego. Ratepayers there are paying market-based rates for electricity and have seen their utility bills nearly triple in the past two months. The price cap would need to be approved by the Federal Energy Regulatory Commission before it goes into effect at the Power Exchange. FERC has not indicated whether it would OK the measure, but said it would investigate it. If you have any questions, please feel free to call me directly. -eja E. Jesus Arredondo Manager, Corporate Communications California Power Exchange Tel. 626.537.3155 - resolution bid caps august 16.doc