Message-ID: <11734710.1075852513875.JavaMail.evans@thyme> Date: Fri, 10 Aug 2001 06:00:07 -0700 (PDT) From: d..steffes@enron.com To: daniel.allegretti@enron.com, richard.shapiro@enron.com, michael.roan@enron.com, donna.fulton@enron.com, kerry.stroup@enron.com Subject: Meeting with N. Grid - KEY ISSUES Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Steffes, James D. X-To: Allegretti, Daniel , Shapiro, Richard , Roan, Michael , Fulton, Donna , Stroup, Kerry X-cc: X-bcc: X-Folder: \JSTEFFE (Non-Privileged)\Steffes, James D.\Sent Items X-Origin: Steffes-J X-FileName: JSTEFFE (Non-Privileged).pst A few thoughts before the NG meeting -- 1. Maybe we should (as a team) call Transelect (Paul Buckman) before our NG meeting. You may remember that Transelect sent an initial letter into Skilling to try and solicit our support for stopping the NG application to be managing member of the ARTO. I think that it would be good to call Buckman and ask if he has a better idea than NG. We are right now stuck between two very bad answers - let AEP and FE construct a managing member or have NG. Maybe Transelect has a better solution. 2. Chief Issues with NG -- a. are they "really" independent? having a short position in NY and owning generation in NE effectively makes NG into a "market participant" - I think that Enron should make as a hold firm position that to operate an RTO there can be no agreement with anything less than almost perfect independence. b. who do they feel the customer is? maybe we want to get Paul Dawson's take on their business model from the UK. it is critical that the new RTO operators across the country view traders/marketers and generators as their key customers. what form of regulation for cost recovery of their operating expenses do they want - pass thru, PBR, etc.? c. who writes the tariff? I would make a strong argument that the problem with most of the RTO work to date has been that FERC has allowed the current incumbents to first write a bad tariff and then assign the provision of service under that tariff to someone who has very little (if any) control over future changes. the RTO operator must be free to make changes to the tariff with only two constraints - (1) must not restrict the ability to pay facility revenue reqts and (2) must not damage the assets. d. do they intend to build/own transmission and how does this impact the energy markets? will their planning and construction processes impact any long term positions that EPMI may take in the energy market. how do they manage to allow other merchant transmission into the business? e. how do they intend to provide balancing energy? the flip side of our fight on congestion management involves the pricing of energy imbalances. what is NG intending to do on this issue? does NG believe that multiple control areas makes sense for a single RTO? does NG support unbalanced/uncovered schedules day-ahead? Also, just to let people know, Kerry Stroup will also be working on the Midwest RTO efforts going forward. Please keep him included on the e-mails. Jim -----Original Message----- From: Allegretti, Daniel Sent: Thursday, August 09, 2001 12:30 PM To: Steffes, James D.; Shapiro, Richard; Roan, Michael Subject: Meeting with N. Grid Meeting confirmed with National Grid for 10:00 am, Tuesday, August 13, 2001 at National Grid's office, 633 Pennsylvania Avenue, Washington, D.C. Attendees from Grid will include some or all of the following people: Nick Windsor (UK) Phillip Johnson (UK) Tony Hill (Business Dev) Peter Flynn (US Transmission) Masheed Rosenquist (US Transmission) Paul Halas (US Transmission)