Message-ID: <20092403.1075860378125.JavaMail.evans@thyme> Date: Mon, 8 Jan 2001 06:03:00 -0800 (PST) From: mary.hain@enron.com To: alan.comnes@enron.com Subject: Re: CAISO Notification - Transmission Access Charge Implementation - Addition of City of Vernon as PTO Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: Mary Hain X-To: Alan Comnes X-cc: X-bcc: X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\All documents X-Origin: Hain-M X-FileName: mary-hain.nsf Typically the traders are not interested in changes to the TAC because it i= s=20 paid by the end-user not by us. However, EES folks (Dennis Benevides, Neil= =20 Bresnan, and Jubron Whelan) are usually interested and you can copy the=20 traders with an FYI if you want to. You have probably discovered all this= =20 already. Alan Comnes 01/03/2001 08:55 AM To: Roger Yang/SFO/EES@EES@ENRON cc: Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Mary=20 Hain/HOU/ECT@ECT, Tamara Johnson/HOU/EES@EES@ENRON=20 Subject: Re: CAISO Notification - Transmission Access Charge Implementation= -=20 Addition of City of Vernon as PTO =20 Roger, I did a brief summary of this last week which I will copy below. I do not have any sense of whether the proposed change will be accepted,=20 accepted subject to refund, or suspended by FERC. If you need any detail, I think you will find it in one of the ISO's=20 attachments to their filing (the .xls file) which is at www.caiso.com/ferc= =20 filings. Cheers, Alan Comnes Earlier Email: Here is another hefty ISO filing that came in this week. Please let Sue o= r=20 I know if you believe we should intervene/protest. Alan Comnes Summary of ISO Amendment 34: Filed: December 28 Effective Date: 1/1/01 (expedited treatment requested) Protests Due: January 17? (need to confirm this) Filing in a Nutshell: The ISO states that the purpose of the amendment is t= o=20 clarify certain issues associated with implementation of the new transmissi= on=20 Access Charge methodology it orginally proposed in Amendment No. 27.=20 (According to the ISO, Amendment 27 has been accepted for filing, suspended= ,=20 and set for hearing. Settlement negotiations are ongoing. (Is Enron a par= ty=20 to these settlements?)) In addition, the ISO provides new transmission Acce= ss=20 Charge (TAC) rates that will be in effect if the Commission approves the Ci= ty=20 of Vernon joining the ISO effective January 1, 2001 and the amount of Firm= =20 Transmission Rights that will be given to Vernon in accordance with the ISO= =20 Tariff. Specific Proposed Changes Clarification of Wheeling Access Charge Quantity The ISO proposes that these provisions be clarified to specify that in the= =20 determination of the Wheeling Access Charge, the proper calculation is to u= se=20 transmission facility ownership and Entitlements less all Encumbrances. =20 Encumbrances include transmission used to meet demands of existing=20 contracts. This is how the ISO is currently calculating this charge and th= e=20 ISO appears to be using this filing to codify this method. New HV TAC Rates Using Year-1 of the ISO=01,s Proposed Transmission Methodo= logy The current Access Charge methodology consists of three separate zone rates= =20 based on the Transmission Revenue Requirement of the Original Participating= =20 TO. Because each zone corresponds to the service territory of the TO, they= =20 are known as =01&license plate=018 rates. Under Amendment No. 27, this met= hodology=20 continues in effect until a New Participating TO joins the ISO. Once that= =20 occurs, the Access Charge for High Voltage Transmission Facilities will be= =20 assessed based on the combined High Voltage Transmission Revenue Requiremen= ts=20 of all the Participating TOs in each TAC Area. The filing claims to implement an already-approved transition formula where= in=20 new members of the ISO will pay a rate that is a mix license place and syst= em=20 average embedded costs. The goal is that after 10 years there will be only= 1=20 high voltage access charge. The following table shows that under the curren= t=20 method, which would be a 90/10 split of license-plate/system-average charge= s,=20 PG&E and SCE TO access charges would rise approximately $3.2 million and=20 Vernon would be subsidized approximately $7 million. Calculation of the net (benefits)/burdens from Access Charge and GMC Impact= . =20 PG&E and SCE have a $32 Million cap annually and=20 SDG&E has a $8 Million cap annually; Vernon is held harmless; I OUs pay muni cost increases in proportion to their cap relative to the tota= l=20 cap.=09Adjusted =09Net =09(Benefit)/ =09Burden =09($1000) =09[37] PG&E=09$3,283=20 SCE=09$3,283=20 SDG&E=09$821=20 Vernon=09($7,051) Total=09$336=20 =09 =09 =09Note: a positive number means the TAC is going up. A negative number me= ans=20 the TAC is going down (or will be lower than would be the case under 100%= =20 license plate ratemaking) Vernon=01,s Existing Transmission Rights Converted to FTRs Veron, by joining the ISO effective 1/1/01, agrees to convert existing=20 transmission rights to FTRs of presumably an equivalent amount. The propos= ed=20 FTRs to allocate to Vernon are in the filing. These FTRs will expire when= =20 the underlying contract right expires or 10 years, whichever is sooner. End of Summary Roger Yang@EES 01/03/2001 08:35 AM To: Susan J Mara/NA/Enron@ENRON cc: Jeff Dasovich/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT@ENRON, Alan=20 Comnes/PDX/ECT@ECT@ENRON, Tamara Johnson/HOU/EES@EES=20 Subject: Re: CAISO Notification - Transmission Access Charge Implementation= -=20 Addition of City of Vernon as PTO =20 Can you get us what the estimated revenue requirement cost shifting will be= =20 to SCE, PG&E, and SDG&E? I know it is not much, but we need to build this= =20 amount into our transmission curves for these utilities. Roger =20 Susan J Mara@ENRON 01/02/2001 07:42 PM To: Roger Yang/SFO/EES@EES cc: Jeff Dasovich/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT, Alan=20 Comnes/PDX/ECT@ECT=20 Subject: CAISO Notification - Transmission Access Charge Implementation -= =20 Addition of City of Vernon as PTO i thought that Vernon had opposed some of FERC's order on joining, but=20 according to this ISO e-mail,, it looks as if Vernon is now a PTO. PG&E = =3D=20 the northern TAC, SCE =3D Central, and SDG&E =3D Southern. I don't recall = seeing=20 any filings for the "Low Voltage" rates. I'll have to let you know on thos= e. ----- Forwarded by Susan J Mara/NA/Enron on 01/02/2001 07:35 PM ----- =09CRCommunications =0901/02/2001 05:48 PM =09=09=20 =09=09 To: ISO Market Participants=20 =09=09 cc: ISO Client Relations , SC Settleme= nts=20 Contacts=20 , "Kazerooni, Hamid" , "Gerber, Spence"=20 , "Le Vine, Debi" , "Bouillon, Brad"= =20 , "Shafa, Masoud" , "Ng, Chi-Pui"=20 =09=09 Subject: CAISO Notification - Transmission Access Charge Implementat= ion -=20 Addition of City of Vernon as PTO Market Participants: As of January 1, 2001, the City of Vernon has joined the CAISO as a Participating Transmission Owner (PTO) under the CAISO Tariff and Transmission Control Agreement (TCA). According to Amendment 27 of the ISO Tariff, there are three TAC areas: Northern TAC Area, Eastern/Central TAC Area, and Southern TAC Area. The following TAC Area rates for the use of the High Voltage Transmission Facilities are in effect starting January 1, 2001. TAC Area High Voltage Access Charge (TAC Area + ISO-wide) North 1.41 $/MWH East/Central 2.04 $/MWH South 1.99 $/MWH The Low Voltage Access Charge is defined in each PTO's TO Tariff. <> CRCommunications Client Relations Communications - TAC Overview.doc