Message-ID: <20758773.1075846343644.JavaMail.evans@thyme>
Date: Tue, 5 Dec 2000 08:18:00 -0800 (PST)
From: christi.nicolay@enron.com
To: shelley.corman@enron.com
Subject: Re: December 18 FERC Meetings
Cc: james.steffes@enron.com, joe.hartsoe@enron.com, steven.kean@enron.com, 
	richard.shapiro@enron.com
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Shelley--You could show Stan this list that is included in our talking poin=
ts=20
for this week's FERC staff meeting:

? Enron is very happy about Scott's investigation:  Scott Miller (who repor=
ts=20
to Dan Larcamp) was in charge of the recently issued helpful FERC Staff=20
Investigations in the Midwest and Southeast, which concluded generally that=
=20
vertically integrated utilities (even in RTOs) will continue to have=20
incentives to benefit their own generation and to keep competitors from usi=
ng=20
the grid on a level playing field.  Therefore, Staff suggests that the=20
Commission consider eliminating the native load exemption and have all=20
transactions under the same tariff.

? For the power markets to flourish with tighter spreads and more liquidity=
,=20
need Fully Functioning Independent RTO with:
1.  Real Time Balancing Market with Hourly Clearing Prices (ISO/RTO has=20
annual auction for bilateral contracts to serve ancillary services)
2.  Single Control Areas:  all market players have same scheduling rights=
=20
into real time (can float entire position against the balancing market =01)=
=20
=01&effectively=018  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 electrical=
ly=20
significant constraints =01) allows for creation of hubs
6.  Market based congestion management:  independently administered by a=20
separate ISO market function
7.  Day Ahead Market Function:  ISO load forecast creates demand curve;=20
generation offers create supply curve (hourly)
8.  Open Information to all Market Participants (outages, supply curve,=20
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=
=20
Steffes/NA/Enron@Enron, Christi L Nicolay/HOU/ECT@ECT, Joe=20
Hartsoe/Corp/Enron@ENRON
cc: =20

Subject: December 18 FERC Meetings


FYI
In his role as incoming INGAA chairman, Stan Horton, together with Jerry=20
Halvorsen, is scheduled to meet with Commissioners Massey, Breathitt and=20
Hebert on December 18.   I'll forward his talking points a little closer to=
=20
the date.  Please advise if there are any issues or concerns that Stan shou=
ld=20
be aware of prior to his visit.

Also FYI, FERC contacted INGAA to ask that pipelines call Dan Larcamp in th=
e=20
event that they experience any curtailments, supply shortages or other=20
critical operations situations this winter.  FERC wants to hear from the=20
pipelines and have some time to react before they are asked to respond in a=
=20
public forum.