Message-ID: <10616827.1075846350201.JavaMail.evans@thyme> Date: Tue, 12 Sep 2000 15:50:00 -0700 (PDT) From: jeff.dasovich@enron.com To: james.steffes@enron.com, steven.kean@enron.com, richard.shapiro@enron.com, joe.hartsoe@enron.com, sarah.novosel@enron.com, mary.hain@enron.com, sandra.mccubbin@enron.com, mona.petrochko@enron.com, susan.mara@enron.com, mpalmer@enron.com, karen.denne@enron.com Subject: DJ Freeman Sees Cal/ISO, PX Merger, Lower Price Cap Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jeff Dasovich X-To: James D Steffes, Steven J Kean, Richard Shapiro, Joe Hartsoe, Sarah Novosel, Mary Hain, Sandra McCubbin, Mona L Petrochko, Susan J Mara, mpalmer@enron.com, Karen Denne X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Heat wave X-Origin: KEAN-S X-FileName: skean.nsf I'd say, "What next?", but I'm afraid to ask.... Regarding our California strategy, preventing the merger would seem to be right up there with "end the price caps" in our list of priorities. At today's FERC hearing, a hair-brained consumer advocate called for merging the PX and the ISO. During the panel I was on, I made the point that a merger would make California's problems worse than they are today. The FERC Commissioners seemed somewhat responsive to my concerns. P.S. After the panel, Heber lobbied me hard to support transcos. DJ Freeman Sees Cal/ISO, PX Merger, Lower Price Cap Copyright , 2000 Dow Jones & Company, Inc. By Jason Leopold Of DOW JONES NEWSWIRES SAN DIEGO (Dow Jones) -- David Freeman, seen a likely replacement for Marcie Edwards on the board of governors of the California Independent System Operator, said his first order of business would be to try and merge the ISO and the California Power Exchange. Edwards resigned her post on the ISO Thursday. An informal consensus among the board has already approved his membership. Freeman told Dow Jones Newswires that the $250 per megawatthour wholesale power price cap in California is too high, and that he would like to see it reduced below $100/MWh. "I think my role (on the board) will help the state solve it's serious generation shortage problem," Freeman said. Some market participants said Freeman is expected to run for chair of the ISO's board of governors, a seat currently held by Jan Smutny-Jones. The Los Angeles Department of Water and Power has this summer been able to sell the ISO power in the real time market, and make a great profit for itself in return. By Jason Leopold (323)658-3874.