Message-ID: <23141964.1075846344720.JavaMail.evans@thyme> Date: Thu, 3 Aug 2000 09:27:00 -0700 (PDT) From: charles.yeung@enron.com To: james.steffes@enron.com Subject: Re: Transmission / Wholesale Market Regional Plans Cc: jeff.brown@enron.com, janine.migden@enron.com, joe.hartsoe@enron.com, ron.mcnamara@enron.com, steve.montovano@enron.com, dan.staines@enron.com, robin.kittel@enron.com, sarah.novosel@enron.com, kerry.stroup@enron.com, christi.nicolay@enron.com, steve.walton@enron.com, tom.delaney@enron.com, howard.fromer@enron.com, daniel.allegretti@enron.com, richard.shapiro@enron.com, steven.kean@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: jeff.brown@enron.com, janine.migden@enron.com, joe.hartsoe@enron.com, ron.mcnamara@enron.com, steve.montovano@enron.com, dan.staines@enron.com, robin.kittel@enron.com, sarah.novosel@enron.com, kerry.stroup@enron.com, christi.nicolay@enron.com, steve.walton@enron.com, tom.delaney@enron.com, howard.fromer@enron.com, daniel.allegretti@enron.com, richard.shapiro@enron.com, steven.kean@enron.com X-From: Charles Yeung X-To: James D Steffes X-cc: Jeff Brown, Janine Migden, Joe Hartsoe, Ron McNamara, Steve Montovano, Dan Staines, Robin Kittel, Sarah Novosel, Kerry Stroup, Christi L Nicolay, Steve Walton, Tom Delaney, Howard Fromer, Daniel Allegretti, Richard Shapiro, Steven J Kean X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Ferc X-Origin: KEAN-S X-FileName: skean.nsf Jim a BIG external factor that is directed to the item (2) ISO Systems & Procedures: At the NERC Electronic Scheduling Task Force meeting today, there was considerable discussion on how this Task Force (which was formed before the OASIS ANOPR was posted) would coordinate on an industry-wide basis, a NERC response to the OASIS Phase II ANOPR. Here are some important points a FERC Staff member (Marv Rosenberg) made at the meeting. These should be kept in mind in developing the Enron proposal and the process of getting buy-in in each of the Regions/RTOs. - FERC prefers a single industry consensus filing. - The ANOPR is intended to tie RTO Order 2000 together with new OASIS II requirements - Does not preclude individual RTOs or entities from submitting proposals. However a diversity of filings will indicate non-consensus and FERC will make its own decisions which will likely not be industry friendly. FERC is asking the industry for communication and Business Practices standards for issuing in a NOPR. FERC is looking for: - more functionality and to be more user-friendly - electronic scheduling - electronic reservations - reduce duplication of information entry for customers - not intended to dictate the Control Area to Control Area communications I asked Marv to clarify this - He explained that although not required, FERC welcomes propsals to address the control area source/sink issues as part of an OASIS II solution (ie Entergy Source/Sink Order) OASIS II should: - continue use of Web browsers - use templates for file transfers (uploads and downloads) - all displays do not have to look the same - but encourages a common look and feel - within a RTO, business practicese may differ, but between RTOs the practices must be standardized We need to keep close to the NERC efforts since FERC has historically tended to favor NERC proposals because they tout an air of industry consensus. The clarificaton to the ANOPR given by Marv should make buy-in an important element of our proposal. If FERC adopts the NERC filing, we will likely be stuck with the exisiting contract path seams problems and LMP fragmentation in the East because NERC is not proposing any tariff changes. Also we will not get the control area source/sink issue resolved since it will be impossible to resolve at NERC in 7 months. Of course, another option would be to incorporate our efforts with this Task Force. James D Steffes@EES 08/02/2000 05:52 PM To: Jeff Brown/HOU/EES@EES, Janine Migden/DUB/EES@EES, Charles Yeung/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@ENRON, Ron McNamara/HOU/EES@EES, Steve Montovano/DUB/EES@EES, Dan Staines/HOU/ECT@ECT, Robin Kittel/HOU/EES@EES, Sarah Novosel/Corp/Enron@ENRON, Kerry Stroup/DUB/EES@EES, Christi L Nicolay/HOU/ECT@ECT, Steve Walton/HOU/ECT@ECT, Tom Delaney/Corp/Enron@ENRON, Howard Fromer/HOU/EES@EES, Daniel Allegretti/HOU/EES@EES cc: Richard Shapiro/HOU/EES@EES, Steven J Kean/HOU/EES@EES Subject: Transmission / Wholesale Market Regional Plans 1. I appreciate everyone who participated in the call today. I think that the discussion proved that we can find consensus on a reasonable approach for transmission pricing and energy markets. 2. To make more clear about the Regional Plans, I think that we need to consider the following. A. BACKGROUND Timelines of Current Process Current Players & Current Positions Allies Key Issues now facing the process B. MOVING FORWARD Top Issues upcoming External Factors (e.g., will Entergy join SPP) Resource Needs Relationship to Commercial Objectives / Business Plans C. OTHER ISSUES / CONCLUSION I hope this helps set an outline for the Regional Plans. The key idea is that I want to make sure everyone has a calendar of where we are going and what issues need to be addressed. Don't be shy about adding other topics and issues. We need to have this to communicate within our group and to the commercial people. I don't expect this to be easy, but I think that it will be helpful. 3. I think that we need to put more detail around the entire structure. This would entail developing four things (1) a tariff, (2) ISO Systems & Procedures, (3) Day Ahead PX Energy Market, (4) Transmission Flowgate PX Market. These are the four building blocks to a New Marketplace. My hope is for Enron to put these things out in a detailed framework using "off the shelf" material. I know that Tom Delaney has already started working on a tariff. I think we could adapt the Cal PX model into point 3. We could probably use the APX Flowgate System for point 4. On the ISO, maybe we could go to ESCA and have a Detailed Scope / Work Plan and fees on setting up an ISO (including costs of operation over time). It would make sense to me to do this very formally (including setting energy market zones and defining the commercially significant Flowgates). I would use the MISO as the market to focus on, but am willing to listen to other thoughts. Please let me know what everyone thinks. Jim