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Enron Mail |
Jeff,
Marty Sunde asked me to get ahold of you as soon as possible to discuss likely exit fee scenarios. Could we talk today? Thanks, Kevin Keeney 713-345-3724 ---------------------- Forwarded by Kevin Keeney/HOU/EES on 06/15/2001 08:24 AM --------------------------- Enron Energy Services From: Marty Sunde 06/14/2001 08:05 PM Phone No: 713-853-7797 To: Kevin Keeney/HOU/EES@EES cc: Lamar Frazier/HOU/EES@EES Subject: Re: Core/Non-Core - California Kevin, You may want to connect with Jeff Dasovich re: his belief on the three most likely alternatives for the exit fee issue and the probabilities of each. Mike Day, Dasovich will have the most current info. Lets see if we can't get this info quickly. Thanks ---------------------- Forwarded by Marty Sunde/HOU/EES on 06/14/2001 08:04 PM --------------------------- From: Harry Kingerski@ENRON on 06/12/2001 11:09 AM To: Marty Sunde/HOU/EES@EES cc: Dennis Benevides/HOU/EES@EES, James D Steffes/NA/Enron@ENRON, Kevin Keeney/HOU/EES@EES, Lamar Frazier/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, Richard Shapiro/NA/Enron@Enron Subject: Re: Core/Non-Core - California Marty - the latest - 2 Direct Access bills (Bowen, Kelly) are still on the table. Have not changed much since my earlier e-mail to you, except that Bowen bill now includes a fee to the alternate provider when a customer is "involuntarily returned" to the utility. Language is attached. - SB 27xx - mockup.doc Right now, this legislation is awaiting the outcome of negotiations involving SCE and other parties (Jeff Dasovich is our rep). Speaker Hertzberg and Senator Burton both have endorsed these negotiations and promised to support agreements the parties reach. Jeff tells me this morning they are getting close to agreement on core/non-core and direct access issues but there are still major stumbling blocks, mostly surrounding the going forward DWR costs and contracts, and the issuance of bonds to pay for them. The bond guys see direct access as possible undermining the bonds. If or once agreement is reached, the expectation is that enabling legislation would be crafted that would apply California-wide. The general structure in the SCE discussion is this - By Jan 1, '03, 500 kW+ customers decide to go to market or stay with utility for a long (5 yrs+) period. Re-entry from market would be with up to 12 month notice and could require customer to pay spot market price under utility default. 20-500 kw customers would have voluntary direct access. Under 20 kw customers would have green-only voluntary direct access. Recovery for past undercollections is being negotiated, but will likely require large customers (20 kw+) to pay a disproportionate share of the costs. This may be less than definitive, but as usual, the situation is fluid. Marty and Jeremy, are you available for a Wednesday morning call with Jeff Dasovich? Also, just in case you didn't hear, the Commission is scheduled to vote on Thursday the 14th on an order that would suspend direct access under the AB1x. The expectation is that the vote will be delayed. Best information says there are not enough votes to approve direct access suspension. Marty Sunde@EES 06/12/2001 09:29 AM To: Harry Kingerski/NA/Enron@Enron cc: James D Steffes/NA/Enron@Enron, Kevin Keeney/HOU/EES@EES, Lamar Frazier/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Dennis Benevides/HOU/EES@EES Subject: Core/Non-Core - California Harry (or anyone else that might know), Can you help me understand what has gone on in the last week re: 1) definitive view of exit fees and how they will be administered. What is the probability of one proposed approach vs. others? 2) definitive view of core / non core decisions? when are they coming? How might they influence our actions with the existing contracts. Probability of one proposal passing and when? ---------------------- Forwarded by Marty Sunde/HOU/EES on 06/12/2001 09:13 AM --------------------------- David W Delainey 06/11/2001 06:02 PM To: Lamar Frazier/HOU/EES@EES, Marcus Dotson/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Gayle W Muench/HOU/EES@EES, Don Black/HOU/EES@EES, Jeff Richter/HOU/ECT, Sean A Holmes/HOU/EES@EES, James M Wood/HOU/EES@EES, Richard L Zdunkewicz/HOU/EES@EES, Greg Sharp/HOU/EES@EES, Scott Gahn/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES cc: Janet R Dietrich/HOU/EES@EES Subject: Core/Non-Core - California Guys, I assume that we are managing all new and old California contracts with this potential issue in mind. This plus the exit fees could be a significant issue. Let me know if we need a broader discussion. Regards Delainey
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