Message-ID: <10160321.1075859609001.JavaMail.evans@thyme> Date: Thu, 5 Apr 2001 11:14:00 -0700 (PDT) From: sarah.novosel@enron.com To: elizabeth.sager@enron.com Subject: Re: NYPSC Adopts Enron Online as Index Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sarah Novosel X-To: Elizabeth Sager X-cc: X-bcc: X-Folder: \Elizabeth_Sager_Jun2001\Notes Folders\Notes inbox X-Origin: Sager-E X-FileName: esager.nsf Elizabeth: Christi and I thought you should know about this development in New York regarding EnronOnline. Please call me if you have any questions. Sarah ----- Forwarded by Sarah Novosel/Corp/Enron on 04/05/2001 05:41 PM ----- Sarah Novosel 04/05/2001 01:37 PM To: Donna Fulton/Corp/Enron@ENRON cc: Subject: Re: NYPSC Adopts Enron Online as Index ----- Forwarded by Sarah Novosel/Corp/Enron on 04/05/2001 01:37 PM ----- Louise Kitchen@ECT 04/05/2001 11:31 AM To: James D Steffes/NA/Enron@ENRON cc: Lisa Yoho/NA/Enron@Enron, John J Lavorato/Enron@EnronXGate@ENRON, Andy Zipper/Enron@EnronXGate, Howard Fromer/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON Subject: Re: NYPSC Adopts Enron Online as Index Andy is back now so this is all over to him. There are lots of issues to consider in how all of this moves forward. Let's just make sure Howard keeps Andy in the loop on this as the traders are not expected to understand the trading framework of EOL. Thanks Louise James D Steffes@ENRON 04/05/2001 10:26 AM To: Louise Kitchen/HOU/ECT@ECT cc: Lisa Yoho/NA/Enron@Enron, John J Lavorato/Enron@EnronXGate, Andy Zipper/Enron@EnronXGate@ECT, Howard Fromer/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON Subject: Re: NYPSC Adopts Enron Online as Index Louise -- Government Affairs was not pushing for this outcome. The NY PSC seems to have adopted this on their own (or with the support of the local utility). Howard Fromer (our NY reg affairs guy) indicates that the NY PSC was simply looking for a deep market index they could use to establish "non-switching" customer rates. Howard has spoken with Dana Davis about publishing off-peak and on-peak prices and he said that the Desk could do it. One other thing. PGE is looking to transact with EPMI through EOL. We are preparing a filing at FERC that would modify PGE's Code of Conduct to allow this. There is a risk that FERC will use this filing (while small) to look again at "regulating" EOL. Remember that APX is regulated by FERC. I agree that we need to be more coordinated with EOL and state regulators (FERC is in the loop and we have had discussions with them). Of course, as our involvement in the markets through EOL continues to grow, regulators will begin to take a deeper look. Lisa Yoho and I can come by today to discuss more fully if you'd like. Jim Louise Kitchen@ECT 04/05/2001 09:01 AM To: James D Steffes/NA/Enron@ENRON cc: Lisa Yoho/NA/Enron@Enron, John J Lavorato/Enron@EnronXGate@ENRON, Andy Zipper/Enron@EnronXGate Subject: Re: NYPSC Adopts Enron Online as Index Have we had any interaction with them on this? This is not good news at all (as indicated below) and has regulatory implications for EnronOnline - I presume we did not encourage this in any way or have any agreement in place. Did we have any involvement in the process at all or is this something one of your guys picked up - Anyway Andy Zipper is back today so I am sure he will handle this. Physically they cannot get the prices and we don't (I think) publish power indices on EOL. I hope we haven't been the people pushing this as that would be a real problem and shows immense lack of co-ordination. Louise James D Steffes@ENRON 04/04/2001 06:51 PM To: Louise Kitchen/HOU/ECT@ECT, Lisa Yoho/NA/Enron@Enron, John J Lavorato/Enron@EnronXGate cc: Subject: NYPSC Adopts Enron Online as Index Not sure if you had seen this language from the NY PSC. While great, this clearly means that NY PSC commissioners will begin to think alot about how EOL and its relationships with other Enron companies. Jim ---------------------- Forwarded by James D Steffes/NA/Enron on 04/04/2001 06:49 PM --------------------------- From: Howard Fromer on 04/02/2001 04:38 PM To: Jeffery Ader/HOU/ECT@ECT, Michael Brown/Enron@EnronXGate, Mark Dana Davis/HOU/ECT@ECT, Tom Dutta/HOU/ECT@ECT, John D Suarez/HOU/ECT@ECT, Doug Sewell/HOU/ECT@ECT, Richard Ring/HOU/EES@EES, Charles Decker/HOU/EES@EES, Gary Keevill/ECP/Enron@Enron, John Llodra/Corp/Enron@ENRON, Tom May/Corp/Enron@Enron, Pearce W Hammond/Enron@EnronXGate, Christi L Nicolay/HOU/ECT@ECT, Sarah Novosel/Corp/Enron@ENRON, Dan Staines/HOU/ECT@ECT, W David Duran/HOU/ECT@ECT, Richard Lydecker/Corp/Enron@Enron, Steve Montovano/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Janelle Scheuer/Enron@EnronXGate, Rick Bachmeier/HOU/EES@EES, Lance Hinrichs/HOU/EES@EES, Jim Meyn/NA/Enron@Enron, Berney C Aucoin/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Patricia Collins/HOU/EES@EES, Fatimata Liamidi/HOU/EES@EES, Dag Joraholmen/HOU/EES@EES, Dwight Fruge/HOU/EES@EES, John Campbell/HOU/EES@EES cc: Subject: NYPSC approves market-based backout credit for RG&E; Adopts Enron Online as Index Another big victory for Enron in New York! In an Order issued by the NYPSC on March 29, the NYPSC has approved a proposal to modify the existing fixed backout credit of 2.8 cents per kwh for energy and capacity and replace it with a market-based backout credit. The additional retail adder of 0.4 cents per kwh would remain. Load-serving entities (LSEs) will have the option of continuing to buy their energy and capacity from RG&E at the market based backout credit which will be determined 15 days prior to the beginning of each of the two six-month capability periods, and will be based on "a forecast of energy prices derived from Enron Corporation's (Enron) EnronOnline trading platform." To my knowledge, this is the first occasion that a regulatory body has agreed to use Enron Online as an index! LSEs can elect instead to procure their own commodity and get a market-based backout credit (MBBC). Under this option, the LSEs will get a market based backout credit. However, the Enron online prices for the six months determined as above will be reconciled on a lag basis against actual market prices. The PSC has capped the amount of the reconciliation for any LSE to the product of the LSE's total load for the calendar year and $0.065 per kwh (PSC staff's estimate of RG&E's embedded power supply cost). (The PSC Order actually says $0.015 but this appears to be a mistake since the attached settlement states $0.065.) A copy of the PSC's Order is available on its website: www.dps.state.ny.us