Message-ID: <10560341.1075840794362.JavaMail.evans@thyme> Date: Wed, 19 Dec 2001 06:59:36 -0800 (PST) From: j.kaminski@enron.com To: vkaminski@aol.com Subject: FW: Draft of Hogan/Harvey Paper on FERC's Market Based Rate Initiatives Impacts and Remedies Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Kaminski, Vince J X-To: 'vkaminski@aol.com' X-cc: X-bcc: X-Folder: \vkamins\Sent Items X-Origin: KAMINSKI-V X-FileName: vincent kaminski 1-30-02.pst -----Original Message----- From: bounce-alliance_info-90961@listserver.eei.org@ENRON On Behalf Of "The Alliance of Energy Suppliers" Sent: Tuesday, December 18, 2001 4:22 PM To: Alliance Information Subject: Draft of Hogan/Harvey Paper on FERC's Market Based Rate Initiatives Impacts and Remedies Please review the attached documents and provide us comments by COB tomorrow, Wednesday, December 19, to assist in finalizing EEI and the Alliance of Energy Suppliers filing in the Market Based Rate proceedings. Attached you will find a market assessment and impact predictions of noted economists, Bill Hogan and Steve Harvey. If you have any questions, please do not hesitate to contact us at alliance@eei.org or (202) 508-5098 EEI's Comments/Recommendations on Hogan/Harvey Paper The theoretical discussion (from the second full paragraph on page 3 through the end of page 5) should be moved to the end as a technical appendix. I'm concerned that if it stays in its current place, readers will be thrown off track and maybe even stop there. The last two paragraphs of section III.A. are very hard to read (page 7). Whether they are necessary is a question I have not yet considered. Their advisement against price caps (see section V.i. at pages 19-20) will run counter against some of our wires members. Their recommended alternatives (section VI, pages 20-23) are only loosely tied to my work request. I am uncomfortable with proposals related to plant divestiture for large sellers (pages 21-22) and minimum interconnection standards (page 22.) On another front, a comment came in suggesting that the definition of incremental cost should include accelerated (physical) depreciation. Tonja Wicks Manager, Energy Supply Policy Alliance of Energy Suppliers Edison Electric Institute Phone: (202) 508-5098 Fax: (202) 508-5600 Fax: (202) 508-5445 - Acceler1.doc - EEI Mar1.doc - Alliance of Energy Suppliers.vcf