Message-ID: <16458355.1075858718511.JavaMail.evans@thyme> Date: Tue, 4 Sep 2001 11:04:03 -0700 (PDT) From: ginger.dernehl@enron.com To: richard.shapiro@enron.com Subject: FW: The ISO List Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Dernehl, Ginger X-To: Shapiro, Richard X-cc: X-bcc: X-Folder: \RSHAPIRO (Non-Privileged)\Shapiro, Richard\Deleted Items X-Origin: Shapiro-R X-FileName: RSHAPIRO (Non-Privileged).pst Ginger Dernehl Administrative Coordinator Global Government Affairs Phone# 713-853-7751 Fax# 713-646-8160 -----Original Message----- From: Mara, Susan Sent: Tuesday, September 04, 2001 1:02 PM To: Dernehl, Ginger Subject: FW: The ISO List Here is the list. I also sent it to Janel. I did not send it to Rick -----Original Message----- From: Mara, Susan Sent: Friday, August 31, 2001 1:27 PM To: 'staylo2@state.wy.us' Cc: Kaufman, Paul Subject: The ISO List Thanks for asking about the ongoing CA ISO saga. To be perfectly blunt, ISO is breaching many provisions of its tariff and FERC just stands by and watches. Here are the top 5. 1. governance -- has NEVER complied with the FERC rulings going back to the beginning in 1998 to be independent of state influence -- as of Jan 2002, the CA ISO has been under the complete control of the Governor 2. creditworthiness -- has been under FERC orders to have a creditworthy counterparty for EVERY transaction in its markets. The CA Dept of Water resources said it would be that counterparty. DWR is also getting wads of money from the retail customers (via daily wire transfers by the utilities). Yet the ISO has only paid about 8% of the money it owes suppliers -- where's the money? 3. illegal dispatching -- story by Jason Leopold a few days ago said that the ISO had ordered Southern CA Edison to reduce its baseload Mohave coal plant so it could buy expensive power from DWR -- this is something we've suspected but have had difficulty getting data on. 4. out-of-market calls (OOM) -- ISO is obligated to use the least expensive power from its market to meet load. If not enough power is available and reliability is threatened, then the ISO can go out-of-market" and pay whatever it takes -- i.e. is not limited by the price cap -- to keep the lights on. We believe that the ISO is doing this even when loads of cheap power is available in the market. The ISO is going out and buyuing very expensive power from DWR -- this covers up DWR's bad contracts AND spreads the costs to all parties (not just DWR and the investor-owned utilities). Further, DWR can create the ISO emergency and the need to make OOM calls in the first place simply by failing to schedule sufficient power to meet its load (even though it is swimming in excess power). How sick is that? 5. secrecy and lack of information -- this has always been an issue but since the takeover by the Governor it is even more difficult to get information and less data are appearing on the ISO's web site for public review. I predict this will continue to head downhill. Feel free to call with questions. I can go on for hours like this. Regards, Sue Mara (415) 782-7802