Subject: Re: Urgent - Steve Kean to testify at Senate hearing, need info
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 26 Jan 2001 07:21:00 -0800 (PST)

Elizabeth,

 Per your request, I have prepared the following summary.

Western RTO Development:

RTO West.
Area to be included -- WA, OR, ID, MT, Western WY, UT, NV-North & South and 
hopefully Canada (BC Hydro and possibly Alberta)
Filed with FERC "Stage 1" documents in October 2000 -- Governance, Bylaws, 
Draft of Operating Agreement, etc.
Stage 2 development begun January 2001 with of complete proposal in July 2001
Earliest practical operation Fall 2002 (optimistic based on quick on approval 
time)
Plan Quality -- Good overall 
Attractive Features -- independent board, single control area and real time 
voluntary energy market, all parties on same tariff, a tradeable transmission 
right with "use or lose" anti-hoarding provisions.
Unattractive Features -- Majority of transmission rights allocated to 
existing users for a ten year period ("use or lose" will mitigate for short 
term rights but long term rights on existing system will be tough to get).
Desert STAR.
Area to be included -- AZ, NM, CO, Eastern WY
Governance established and Board has been organized.
Have not yet filed a complete plan 
Earliest practical operation Winter 2002 or beyond, depending on when they 
actually file their proposal
Plan quality --  Potentially promising
Attractive Features -- similar transmission right regime as RTO West
Unknown -- whether they will have a single control area, whether 
Unattractive Features -- Majority of transmission rights allocated to 
existing users, board selection committee was manipulated by publics (however 
in practice the independent board selected seems to have been little affected 
by the search firm nomination process)
CA-ISO.
Area included -- CA IOU's only
Fully operational but with CA/FERC jurisdictional struggle over Board 
appointment and independence.
Modifications to meet Order 2000 have been filed which appear to move 
transmission rights close to the proposals under discussion in RTO West and 
Desert STAR

Cooperative Regional Organization Activity:

Seams.
A joint task force of parties involved in RTO West, Desert STAR and CA-ISO 
began meeting in November 2000
Three major seams issues identified and work begun
Scheduling time lines -- aligning processes between three RTOs so that 
business across seams boundaries is not hampered for administrative reasons.
Nature of transmission rights and effect on loop flow -- making the 
congestion management systems work between the three RTOs.
Export fees -- goal is to eliminate pancaking of fixed cost charges between 
RTOs, perhaps by annual transfer payments between RTOs or some other 
reciprocity agreement.
RTG Consolidation.  
WRTA. SWRTA and WSCC voted to merge in to a single organization, the WIO 
(Western Interconnection Organization)
WIO will have three committee:   Planning, Operations, Market Interface.  
The Northwest organization (NRTA) has decided to stay independent for now, 
but if RTO West forms it may just disappear as a separate organization. 

If you need more detail, please let me know.

Steve

	Elizabeth Linnell@ENRON
	01/26/2001 12:24 PM
		 
		 To: Mary Schoen/NA/Enron@Enron, David Parquet/SF/ECT@ECT, Richard B 
Sanders/HOU/ECT@ECT, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Margaret Carson/Corp/Enron@ENRON, [email-masked], 
Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Sandra 
McCubbin/SFO/EES@EES, Steve Walton/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, 
[email-masked]
		 cc: Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
		 Subject: Urgent - Steve Kean to testify at Senate hearing, need info

Steve Kean will be testifying at the Senate Energy Committee's hearing on 
Wednesday regarding California.  Steve and Jim Steffes asked me to contact 
you for the following information.  I've listed specific requests for several 
people, but am copying many more of you for your input as well.  Anything you 
can provide by sometime on Monday will be appreciated!

Dave Parquet - Siting of new power plants in California.  Any insight you can 
provide regarding the rules, the current climate, what would fix the current 
situation, etc.

Richard Sanders - Steve thinks he might be asked about whether the market was 
manipulated.  Please provide information on whether this was the case and who 
the participants likely were.  What's the current climate regarding 
sanctions, etc.?

Mary Schoen - Any information you can provide relating to air emission issues 
in California, and specific details for our recommendations regarding air 
emissions.

Steve Walton - The status on RTO West, Desert Star, Cal ISO and general 
information on RO development.   

Sue Mara - Specific ordering language requiring the utilities to buy only 
from the PX.  Was it required through legislation or the CPUC, and what 
exactly does it mean.  Who was involved in formulating the language?  
Information on block forward markets.

Alan Comnes - A copy of the CDWR response and anything they might have 
available regarding long term proposals from the government.

Dan Allegretti - We have the e-mail Jim sent regarding the UI deal.  Please 
provide more specifics on the deal, and information regarding portfolio 
management approach.

Thanks for your help!