Message-ID: <28008913.1075844245002.JavaMail.evans@thyme> Date: Tue, 29 May 2001 02:31:00 -0700 (PDT) From: jgallagher@epsa.org To: acomnes@enron.com, bhawkin@enron.com, carin.nersesian@enron.com, christi.l.nicolay@enron.com, donna.fulton@enron.com, janelle.scheuer@enron.com, jhartso@enron.com, john.shelk@enron.com, jsteffe@enron.com, linda.j.noske@enron.com, ray.alvarez@enron.com, rshapiro@enron.com, sarah.novosel@enron.com, sscott3@enron.com, susan.j.mara@enron.com, tom.hoatson@enron.com Subject: FERC Clarification of Market Mitigation Procedures Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Jackie Gallagher" X-To: , , , , , , , , , , , , , , , X-cc: X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\Discussion threads X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf MEMORANDUM TO: Regulatory Affairs Committee Power Marketers Working Group FROM: Jim Steffes, Regulatory Affairs Committee Chair Bob Reilley, Power Marketers Working Group Chair Julie Simon, Vice President of Policy Mark Bennett, Senior Manager of Policy Erin Perrigo, Manager of Policy DATE: May 29, 2001 RE: FERC Clarification of Market Mitigation Procedures On Friday afternoon, the Commission issued an Order clarifying certain aspects of its April 26th Order on mitigation measures. While not addressing the rehearing requests or the CAISO compliance filing, the Commission established procedures for the CAISO to use alternative information from a comparable unit for generators that refuse to provide heat rate and emission data to the CAISO. If an alternative source of data doesn't exist, the CAISO can assume the generator is a price-taker and use a bid of $0/MWh for all available capacity from that unit. Second, the Commission rejected the CAISO'a approach to calculating the proxy gas price and directed the CAISO to calculate the price using the published daily price for Malin, PG&E CityGate, Southern California Border (Kern River Station), SoCalGas large packages and PG&E large packages. Third, the Commission rejected the CAISO's decision to apply price mitigation only to the Imbalance Energy Market and not to Ancillary Service spot markets or Adjustment Bids. Finally, the Commission granted a request by several California cities to require that a creditworthy buyer be in place for all must offer power. The order is attached. If you have any questions, contact Julie Simon at EPSA at 202-628-8200 or jsimon@epsa.org. - el00-95-031.pdf.pdf