Message-ID: <21090290.1075859512063.JavaMail.evans@thyme>
Date: Mon, 26 Jul 1999 08:19:00 -0700 (PDT)
From: elizabeth.sager@enron.com
To: tim.belden@enron.com, holli.krebs@enron.com
Subject: WSPP - Definition of Firm Energy
Cc: james.fallon@enron.com, christian.yoder@enron.com
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Last week, the WSPP drafing group met in sunny California  to continue the 
slow and steady march towards a standardized, "national" agreement. Schedule 
C , the service schedule for firm transactions, was the primary topic and the 
following is a summary of where the group is headed.

After much discussion, we proposed  that the group consider the definition of 
firm energy  that Tim, Christian and others have been considering.  The 
following is proposed language (the base was EPMI's version) that the WSPP 
group is currently reviewing:

Firm Power is power that is sold and scheduled in accordance with applicable 
reserve requirements for which the only excuse for the failure to deliver or 
recieve are those set forth in Schedule 3.9 of the WSPP Agreement.  Seller 
shall take steps necessary for the power to be considered Firm Power under 
this definition.

Schedule 3.9 only allows interruption if (i) within agreed recall time, (ii) 
due to an Uncontrollable Force or (iii) power is need for native load; 
provided, however it was agreed that a party would neverless be liable for 
LDs if it interrupts due to native load requirements (this last point is a 
major accomplishment that apppears to have uniform agreement and will be 
implemented in the next draft - the group claimed that the "optics" are 
necessary to help traditional utilities).  As a further note, the group 
agreed to do away with all references to C1 and  C2 and have just one 
Schedule.

Changes from EPMI's proposed definition where  the result of the following 
discussions:

1.  Generated vs. Sold - "Sold" was elected over "generated" because the 
group thinks that it is the receiving control area that determines the 
generator's reserve requirements.

2. "Schedule"  was added to bolster the scheduling requirements.

3.  "Reserves" instead of "Operating Reserves" was used because the group 
thought the word operating may be too restrictive.

4.  "WSCC reserve requirements" was replaced with "applicable" reserve 
requirements because the group thinks that the WSPP Agreement is national in 
scope and should not be limited to WSPP.

5.  References to Non-firm supply as being excluded from Firm Power was 
excluded because the group thought it was redundent  - no control area would 
accept a non-firm supply as being firm.

6.  Power rather than energy is being used only bacause that is the decision 
that has already been made.

This defintion will be further discussed at  the next meeting on Aug 20th in 
Denver.  Prior to that time, I would like to get your thoughts on how this is 
shaping up and what additions/deletions are appropriate.  I look forward to 
hearing your thoughts.

Thanks.
Elizabeth 
713 853 6349