Message-ID: <27292109.1075860477933.JavaMail.evans@thyme> Date: Fri, 12 Jan 2001 01:58:00 -0800 (PST) From: mary.hain@enron.com To: jgallagher@epsa.org Subject: Re: FERC Conference on Market Monitoring- REVISED DRAFT Cc: bhawkin@enron.com, bmerola@enron.com, christi.l.nicolay@enron.com, donna.fulton@enron.com, janelle.scheuer@enron.com, jeff_brown@enron.com, jhartso@enron.com, mary.hain@enron.com, sarah.novosel@enron.com, tom.hoatson@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit Bcc: bhawkin@enron.com, bmerola@enron.com, christi.l.nicolay@enron.com, donna.fulton@enron.com, janelle.scheuer@enron.com, jeff_brown@enron.com, jhartso@enron.com, mary.hain@enron.com, sarah.novosel@enron.com, tom.hoatson@enron.com X-From: Mary Hain X-To: "Jackie Gallagher" @ ENRON X-cc: @ENRON, @ENRON, @ENRON, @ENRON, @ENRON, @ENRON, @ENRON, @ENRON, @ENRON, @ENRON X-bcc: X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\'sent mail X-Origin: Hain-M X-FileName: mary-hain.nsf I'd like to expand on the last point. The Market Monitoring Committee (MMC) should not make findings, it should simply refer the information it gets to FERC about abuse of market power and violations of antitrust and if should report that information subject to confidentiality. Also, if contrary to our wishes, the FERC allows market monitoring committees to further investigate, make findings, and impose penalties, FERC must require the tariffs to contain detailed due process requirements that: (1) specifically name the behavior that is illegal and relate any penalties to specific violations, (2) require the MMC to notify the party being invested of the tariff or law that may have been violated, (3) allow the party being investigated to perform discovery on any other party (including the ISO or the PX) that may instead be at fault or may be a contributing party, (4) to facilitate this discovery, allow a party to know the identity of the party (if any) that alerted the MMC to the alleged violation, and (5) detail the process for any discovery, hearing, or ADR process to ensure the party being investigated has adequate notice and opportunity to be heard and to impute others who may instead be at fault. Enron Capital & Trade Resources Corp. From: "Jackie Gallagher" 01/12/2001 09:14 AM To: , , , , , , , , , cc: Subject: FERC Conference on Market Monitoring- REVISED DRAFT MEMORANDUM TO: Regulatory Affairs Committee Power Marketers Working Group FROM: Joe Hartsoe, Regulatory Affairs Committee Chair Bob Reilley, Power Marketing Working Group Chair Julie Simon, Vice President of Policy DATE: January 12, 2001 RE: FERC Conference on Market Monitoring in California ? Revised Draft ? Conference Call on Tuesday, January 16th, 2:00 p.m. (EST), 1-800-937-6563 Based on discussion at our last conference call and follow-up conversations with some EPSA members, attached is a significantly revised list of Guiding Principles on Market Monitoring for FERC's staff technical conference on January 23rd to develop market monitoring procedures for the Cal ISO markets. The most significant change from the prior draft is that we now delete any reference to specific price levels that would screen prices in California and focuses instead why a price-based analysis for market monitoring is inappropriate, since it fails to account for capacity costs, opportunity costs and scarcity values. FERC Staff has asked that EPSA be prepared to make a presentation at the January 23rd conference, so it is important that we see if there is consensus on this approach. We will discuss this draft on a conference call on Tuesday, January 16th at 2:00 p.m. (EST). To access the call, please dial 1-800-937-6563. Ask for the Julie Simon/EPSA Call. In the meantime, if you have any questions, concerns or ideas about this effort, please contact Julie at 202-789-7200 or jsimon@epsa.org before the call. Attachment - MARKET MONITORING2.doc