Message-ID: <18050010.1075840888200.JavaMail.evans@thyme> Date: Fri, 27 Jul 2001 13:09:27 -0700 (PDT) From: tim.belden@enron.com To: f..calger@enron.com, louise.kitchen@enron.com Subject: RE: EES @ Silicon Valley Power (City of Santa Clara) Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Belden, Tim X-To: Calger, Christopher F. , Kitchen, Louise X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Portland X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst Another little adder to this concept. Whether it's wholesale or retail, th= e offer for this product would come from me -- either by way of Badeer on t= he wholesale side or Richter on the retail side. I have no interest in get= ting short in Silicon Valley. We don't have transmission to get to this hi= ghly congested area. There are huge risks associated with redefining NP15 = into separate zones and large congestion charges associated with getting to= the SF penninsula. This area looks a lot like Zone J in New York. Not a = place you want to be short. -----Original Message----- From: =09Calger, Christopher F. =20 Sent:=09Friday, July 27, 2001 12:06 PM To:=09Kitchen, Louise Cc:=09Belden, Tim Subject:=09FW: EES @ Silicon Valley Power (City of Santa Clara) Just a little noise from the field offices...no need to do anything but I t= hought you should be aware of a little skirmish. Ader's version is differe= nt -he says he only precluded Mike and Laird's involvement after receiving = a lot of negativism from them about the EES concept. Also, he thinks that = SVP liked the product offering. My opinion is that this a wholesale custo= mer/opportunity. =20 Chris Calger 503-464-3735 -----Original Message----- From: =09Dyer, Laird =20 Sent:=09Thursday, July 26, 2001 10:33 AM To:=09McDonald, Michael; Calger, Christopher F. Subject:=09EES @ Silicon Valley Power (City of Santa Clara) Mike & Chris, I received a phone call from Wayne Ware of Silicon Valley Power ("SVP") thi= s morning. Apparently, EES met with SVP on Tuesday, July 24th to discuss t= he sale of power and services through the City to targeted end-use customer= s on an exclusive basis. Based upon Wayne's comments, SVP staff's response was not favorable. Ware = offered the following comments: 1) SVP dismissed the exclusivity element at the outset. 2) EES's product is perceived to compete directly with SVP's core competen= cy - provision of a fixed priced, load followed product. SVP indicated tha= t it currently offers term (up to 5 years), fixed priced, load followed pow= er to its customers. According to Wayne, over 100 MW's (20% of SVP's load)= is served this way. 3) Ware opined that EES does not understand what SVP does or offers its cu= stomers. SVP was perplexed by this given that Wayne Truxillo (the EES rep.= ) worked for SVP and set up many of the fixed price programs that are curre= ntly in place. 4) SVP views EES's offering as a wholesale product. 5) SVP also had concerns about EES's reputation and history in California = citing the University of California fiasco. SVP didn't think an EES produc= t would be well received among its customers. What is disturbing is that Mike and I asked both Truxillo and Ader if we co= uld be included in these meetings or, at a minimum, be given the opportunit= y to talk with our customers beforehand. EES excluded us from this process= . Mike indicated that Ader was worried I would sabotage EES's efforts; tha= t I would tell SVP that EES's proposal is a wholesale product replicating S= VP's core competency of delivering a fixed priced, load followed product. = Mike and I had a somewhat heated discussion with Ader about their product o= ffering. Ader characterized the product as retail on the basis that it wou= ld be sold one customer at a time and involved load following. That the pr= oduct is to be sleeved through SVP (actually sold to SVP for re-sale) and t= herefore is a wholesale product was dismissed. Ader also indicated that EE= S would be offering behind the meter demand related services, which further= characterized their product as retail. What is clear is that EES is searc= hing for physical power sales. They can offer behind the meter solutions w= ithout the help or involvement of SVP. Their product offering, once the de= corations are removed, is a physical power sale. As was our concern, we will now have to manage this issue, reacting to EES'= s actions. Ugh!!! Laird