Enron Mail

From:jeff.dasovich@enron.com
To:susan.mara@enron.com, james.steffes@enron.com
Subject:Re: FW: Adjustment Bid Market Update
Cc:
Bcc:
Date:Tue, 13 Mar 2001 01:54:00 -0800 (PST)

Are we supporting this (at least conceptually)? Seems important to have a
tangible alternative to the horrible plan that the ISO Board/Staff is
contemplating.

Best,
Jeff



Jacqlynn Wu <jwu@apx.com<
03/12/2001 06:45 PM

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cc: Ed Cazalet <ed@apx.com<, John Stremel <jstremel@apx.com<, Michael
Heinrich <mheinrich@apx.com<
Subject: FW: Adjustment Bid Market Update


< -----Original Message-----
< From: Michael Heinrich
< Sent: Monday, March 12, 2001 4:17 PM
< To: Jacqlynn Wu
< Subject: Adjustment Bid Market Update
<
< <<...<<
<
< 5201 Great America Parkway, Suite 522
< Santa Clara, CA 95054
< 408 517-2100
< 408 517-2985 fax
<
<
< March 12, 2001
<
<
< Dear Colleague,
<
< Thank you for your participation and support in resolving our problems
< this summer regarding congestion management in the California market. As
< we have indicated, we believe that this problem is costing us millions of
< dollars today and continued pro rata schedule cuts as a method of
< congestion management will continue to reduce energy supply this summer
< and escalate substantially to well over $100,000,000 in replacement energy
< costs.
<
< As you suggested, we presented our solution of operating an adjustment bid
< market to manage congestion to the CAISO Board of Governors on February
< 28, 2001. Following that meeting we were requested to work with the CAISO
< staff to develop a resolution to be presented at the next Board meeting on
< March 15, 2001. The CAISO staff will be presenting their solution
< described as "Market Stabilization Plan/Interim Market Redesign" in a
< effort to resolve this and other problems.
<
< While the CAISO plan may have long-term benefits, it has been brought
< forward without the benefit of full stakeholder airing and we believe that
< it will be difficult to complete all software and systems work in time to
< have benefit this summer. In addition, it will require significant
< participant re-education. We are also very concerned about the amount of
< time remaining to complete this process along with the risks and costs
< associated with its implementation. Therefore, APX will finalize its
< offer for the solution that we described to you on February 21 as an
< alternative to the CAISO staff plan during the upcoming CAISO Board of
< Governors meeting. We know that our solution can be implemented in time,
< that it will improve adequate supply and that it will save millions of
< dollars this summer.
<
< We have heard from many of you that you support this market as a viable
< way of mitigating the high cost of congestion in the coming months. WE ARE
< ASKING FOR YOUR SUPPORT OF THIS PLAN WITH the CAISO Board of Governors on
< March 15, 2001.
<
<
< Sincerely,
<
<
<
< Michael L. Heinrich John Stremel
< Vice President Vice President
< Automated Power Exchange Automated Power Exchange
<
<
< Mike
< Michael L. Heinrich
< Vice President
< Automated Power Exchange
< 5201 Great America Parkway
< Suite 522
< Santa Clara, CA 95054
< 408-517-2100
< Direct: 408-517-2159
< Mobile: 408-393-1092
< e-mail: mheinrich@apx.com
< www.apx.com
<
<