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Enron Mail |
The following 4 excerpts from AB1890 make a pretty compelling case that:
1) The DA customers should not pay more than bundled rates and 2) This should be accomplised through forcing utilties to participate in th= e=20 Px 3) Px should reflect market value 367 e 2, page 33 says=20 "(2) Individual customers shall not experience rate increases as a result o= f=20 the allocation of transition costs. However, customers who elect to purchas= e=20 energy from suppliers other than the Power Exchange through a direct=20 transaction, may incur increases in the total price they pay for electricit= y=20 to the extent the price for the energy exceeds the Power Exchange price." Says that DA customers cannot pay more than bundled if they buy from=20 supplier at market prices. 365. confirms that the legislation intended that the utility be forced to= =20 sell to the Px as follows: "The actions of the commission pursuant to this chapter shallbe consistent= =20 with the findings and declarations contained in Section330. In addition, th= e=20 commission shall do all of the following: (a) Facilitate the efforts of the state=01,s electrical corporations to dev= elop=20 and obtain authorization from the Federal Energy Regulatory Commission for= =20 the creation and operation of an Independent System Operator and an=20 independent Power Exchange, for the determination of which transmission and distribution facilities are subject to the exclusive jurisdiction of the=20 commission, and for approval, to the extent necessary, of the cost recovery mechanism established as provided in Sections 367 to 376, inclusiv= e.=20 The commission shall also participate fully in all proceedings before the= =20 Federal Energy Regulatory Commission in connection with the Independent=20 System Operator and the independent Power Exchange, and shall encourage the= =20 Federal Energy Regulatory Commission to adopt protocols and procedures that=20 strengthen the reliability of the interconnected transmission grid, encourage all publicly owned utilities in California to become full= =20 participants, and maximize enforceability of such protocols and procedures = by=20 all market participants. Says they intend that utilities buy and sell from the Px 390 c page 49 confirms that Px is market based as follows:=20 "© The short-run avoided cost energy payments paid to nonutility power=20 generators by electrical corporations shall be based on the clearing price paid by the independent Power Exchange....." Confirms that they intended that Px be short run avoided costs or market= =20 value 367 © page 33 confirms that Px is market based as follows: " Be limited i= n=20 the case of utility-owned fossil generation to the uneconomic portion of th= e=20 net book value of the fossil capital investment existing as of January 1,= =20 1998, and appropriate costs incurred after December 20, 1995, for capital= =20 additions to generating facilities existing as of December 20, 1995, that the commission determines= =20 are reasonable and should be recovered, provided that the additions are necessary to maintain such facilities through December 31= ,=20 2001. All =01+=01+going forward costs=01,=01, of fossil plant operation, including operation and maintenance, administrative and general, fuel and= =20 fuel transportation costs, shall be recovered solely from independent Power Exchange Revenues or from contracts with the Independent= =20 System Operator, provided that for the purposes of this chapter, the following costs may be recoverable pursuant to this section:" Supports that the legislation intended utility generation to be sold to Px
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