Message-ID: <22083734.1075846353518.JavaMail.evans@thyme> Date: Fri, 4 Aug 2000 08:13:00 -0700 (PDT) From: james.steffes@enron.com To: steven.kean@enron.com, tim.belden@enron.com, richard.shapiro@enron.com, david.delainey@enron.com, john.lavorato@enron.com Subject: SDG&E Complaint vs. Sellers into Calif ISO / Calif PX Cc: mary.hain@enron.com, joe.hartsoe@enron.com, paul.kaufman@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: mary.hain@enron.com, joe.hartsoe@enron.com, paul.kaufman@enron.com X-From: James D Steffes X-To: Steven J Kean, Tim Belden, Richard Shapiro, David W Delainey, John J Lavorato X-cc: Mary Hain, Joe Hartsoe, Paul Kaufman X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Heat wave X-Origin: KEAN-S X-FileName: skean.nsf SDG&E filed a Complaint with the FERC that requests an "emergency order capping at $250 per MWh the prices" for all parties selling into the Calif ISO and the Calif PX. SDG&E claims that the Calif ISO and the Calif PX are "fundamentally flawed and inherently incapable of producing workable competition". EPMI is directly impacted by this Complaint. Even though FERC has approved EPMI's Market-Based Rate certificate after a finding that we had no market power, this Complaint would restrict us from selling at above $250 per MWh into the Calif ISO and Calif PX. Government Affairs is responding in two ways -- 1. A direct response from EPMI to FERC responding that there has been no finding that EPMI has market power and therefore we should not lose our market-based rate authority. 2. A response through WPTF (Western Power Trading Forum) and EPSA to argue more broadly the facts of what is going on in California (bad hedging by SDG&E) and poor market structure rules. The fundamental problem is that the FERC is running scared about price spikes and may, without any real thinking, approve such a Complaint. SDG&E has asked for expedited treatment and a decision could be out as early as mid August. This issue again highlights how important the on-going FERC Investigation in Market Issues is for Enron. We are putting together a detailed plan of how Enron will present our recommendations to FERC in this Investigation and will discuss this with you. Call with questions. Thanks, Jim