Subject: Re: December 18 FERC Meetings
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Tue, 5 Dec 2000 08:18:00 -0800 (PST)

Shelley--You could show Stan this list that is included in our talking points 
for this week's FERC staff meeting:

? Enron is very happy about Scott's investigation:  Scott Miller (who reports 
to Dan Larcamp) was in charge of the recently issued helpful FERC Staff 
Investigations in the Midwest and Southeast, which concluded generally that 
vertically integrated utilities (even in RTOs) will continue to have 
incentives to benefit their own generation and to keep competitors from using 
the grid on a level playing field.  Therefore, Staff suggests that the 
Commission consider eliminating the native load exemption and have all 
transactions under the same tariff.

? For the power markets to flourish with tighter spreads and more liquidity, 
need Fully Functioning Independent RTO with:
1.  Real Time Balancing Market with Hourly Clearing Prices (ISO/RTO has 
annual auction for bilateral contracts to serve ancillary services)
2.  Single Control Areas:  all market players have same scheduling rights 
into real time (can float entire position against the balancing market ) 
&effectively8  parking and lending)
3.  Single Transmission Tariff:  load pays all transmission costs
4.  No native load or network service
5.  Zonal Market for Energy/Balancing:  Zones are established at electrically 
significant constraints ) allows for creation of hubs
6.  Market based congestion management:  independently administered by a 
separate ISO market function
7.  Day Ahead Market Function:  ISO load forecast creates demand curve; 
generation offers create supply curve (hourly)
8.  Open Information to all Market Participants (outages, supply curve, 
demand curve, interchange, etc.)

Shelley Corman@ENRON
12/05/2000 02:46 PM
To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, James D 
Steffes/NA/Enron@Enron, Christi L Nicolay/HOU/ECT@ECT, Joe 
Hartsoe/Corp/Enron@ENRON
cc:  

Subject: December 18 FERC Meetings

FYI
In his role as incoming INGAA chairman, Stan Horton, together with Jerry 
Halvorsen, is scheduled to meet with Commissioners Massey, Breathitt and 
Hebert on December 18.   I'll forward his talking points a little closer to 
the date.  Please advise if there are any issues or concerns that Stan should 
be aware of prior to his visit.

Also FYI, FERC contacted INGAA to ask that pipelines call Dan Larcamp in the 
event that they experience any curtailments, supply shortages or other 
critical operations situations this winter.  FERC wants to hear from the 
pipelines and have some time to react before they are asked to respond in a 
public forum.