Message-ID: <8207501.1075858720593.JavaMail.evans@thyme> Date: Wed, 5 Sep 2001 13:55:41 -0700 (PDT) From: legal <.hall@enron.com> To: richard.shapiro@enron.com, alan.comnes@enron.com, susan.mara@enron.com, pr <.palmer@enron.com> Subject: RE: PwC Operational Study: A golden opportunity to expose ISO manipulation of real-time markets and scheduling Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Hall, Steve C. (Legal) X-To: Shapiro, Richard , Comnes, Alan , Mara, Susan , Palmer, Mark A. (PR) X-cc: X-bcc: X-Folder: \RSHAPIRO (Non-Privileged)\Shapiro, Richard\Deleted Items X-Origin: Shapiro-R X-FileName: RSHAPIRO (Non-Privileged).pst We have a call set up with the PwC auditors for Friday September 7 at 10:30 a.m. The call-in number is (877) 661-1222 and the passcode number is 921065. Richard, Mark, and Sue: Any suggestions for increasing the likelihood that the auditors will pursue our questions? I was thinking that we could get the names of the auditors and send them a confirming letter thanking them for meeting with us, reiterating our questions and concerns, and stating that we look forward to and relying on their review of these critical matters because so much money is at stake. PwC will be less likely to blow us off with a letter like that in the file---if the ISO blows up, that letter would be Exhibit A in a negligent misrepresentation case against PwC. Alan, Would you like to meet on Thursday afternoon for a bit to outline and frame our questions? Steve -----Original Message----- From: Shapiro, Richard Sent: Wednesday, September 05, 2001 1:02 PM To: Comnes, Alan; Hall, Steve C. (Legal); Mara, Susan; Palmer, Mark A. (PR) Subject: RE: PwC Operational Study: A golden opportunity to expose ISO manipulation of real-time markets and scheduling Go for it! -----Original Message----- From: Comnes, Alan Sent: Wednesday, September 05, 2001 2:53 PM To: Shapiro, Richard; Hall, Steve C. (Legal); Mara, Susan; Palmer, Mark A. (PR) Subject: RE: PwC Operational Study: A golden opportunity to expose ISO manipulation of real-time markets and scheduling Importance: High Rick, I talked with Sue and Steve and also talked to Karen Shea with Dynegy (formerly with PG&E). PWC has showed little spine in the past. The tariffs are usually vague enough for PWC to find to-the-letter compliance where clear violations in spirit exist. Also, issues raised over 2 years ago have yet to be resolved. However, Sue and I agree that there would be no harm to lodge some issues with PWC. I think the issues we should raise are: CAISO has still not brought forth a creditworthy buyer (Terry Winter's letter said as much) CAISO appears to be taking OOM calls in violation of its tariff as a way to launder DWR power. I told Steve to go ahead and schedule a call with PWC and I offered to be on it with him. Rick or Mark: please let me know if you have a problem pursuing this. Finally, FYI, Dynegy expects to lodge issues with PWC. Alan -----Original Message----- From: Shapiro, Richard Sent: Tuesday, September 04, 2001 7:23 PM To: Hall, Steve C. (Legal); Mara, Susan; Comnes, Alan; Palmer, Mark A. (PR) Subject: RE: PwC Operational Study: A golden opportunity to expose ISO manipulation of real-time markets and scheduling By this e-mail, I'm soliciting input from Sue and Alan on whether we should engage with PWC( I know Sue thinks PWC is captive to ISO).Thanks. -----Original Message----- From: Hall, Steve C. (Legal) Sent: Tue 9/4/2001 5:31 PM To: Mara, Susan; Comnes, Alan; Palmer, Mark A. (PR); Shapiro, Richard Cc: Subject: PwC Operational Study: A golden opportunity to expose ISO manipulation of real-time markets and scheduling PriceWaterhouse is seeking confidential input from ISO market participants about the ISO's hour-ahead, day-ahead and real-time operating practices performed by ISO personnel in its Folsom and Alhambra control rooms. This would be a great opportunity to bring up dubious schedule adjustments, CDWR sweetheart deals (OOM purchases), CDWR access to ISO confidential data, suspected manipulation of ex post prices, and ISO board independence. However, we need to act fast. Meetings with PwC are scheduled for tomorrow and Friday. If there is interest in presenting some questions/data to PwC, I would be available to help pull together information and formulate questions on short notice. Steve -----Original Message----- From: CRCommunications [mailto:CRCommunications@caiso.com] Sent: Tuesday, September 04, 2001 2:32 PM To: ISO Market Participants Subject: CAISO Notice - PwC Operational Study The ISO is re-sending this message, previously sent on August 29, due to technical difficulties. If you received the original message, please disregard this one. ISO Market Participants: In past years, the California Independent System Operator (ISO) has evaluated its operating practices through an independent review. PricewaterhouseCoopers (PwC) plans to commence the ISO's 2001 Operational Study during September 2001. As in past years, the Operational Study will be focused on hour-ahead, day-ahead and real-time operating practices performed by ISO personnel in its Folsom and Alhambra control rooms. PwC is seeking input from ISO market participants prior to conducting its Operational Study. Consistent with prior studies, the scope of the 2001 Operational Study will not include active settlement disputes which are being addressed in other forums. If you would like to meet with PwC (via conference call) to discuss the scope of this Operational Study, please call Ms. Ericia Berti at (916) 351-4453 or e-mail her at eberti@caiso.com . You can schedule a meeting for Wednesday, September 5th or Friday, September 7th. Market participants will be given the opportunity to have a member of ISO Operations management, Vicken Kasarjian, present during all or a portion of their meetings if they so desire. Information conveyed by market participants to PwC during these meetings will be treated in the strictest confidence at the request of the market participants. When scheduling a meeting, please advise Ms. Berti whether you prefer to: 1. Meet with PwC only; 2. Meet with PwC and Vicken Kasarjian; or 3. Meet first with PwC only, followed by a session including Vicken Kasarjian to cover certain matters addressed in the first meeting that you wish to communicate directly to ISO management. If you have any questions regarding the PwC Operational Study or the interviews, please contact Ericia Berti. Client Relations Communications CRCommunications@caiso.com Byron B. Woertz, Jr. Director, Client Relations Phone: (916) 608-7066 Pager: (800) 481-7037