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Enron Mail |
Jim, I agree - lets put a plan in place to ensure appropriate representation
at these ISO's (not unlike PAC) and ensure that FERC is not abdicating their responsibilities. The three of us probably need to get together and discuss tactics around a number of issues. Jim, I am also curious where you are in your thoughts and plans given your new role. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 06/29/2000 06:48 PM --------------------------- James D Steffes@EES 06/29/2000 04:06 PM To: David W Delainey/HOU/ECT@ECT cc: Richard Shapiro/HOU/EES@EES Subject: Re: california Dave -- To your direct question of should Enron take a more active role in supporting or nominating Board members, I agree fully. I would add the following thoughts: First, I think that Enron's key position in terms of ISO / RTO governance should be that Boards (or the leadership and staff of transmission providers) should be indifferent to the price at which the commodity trades. ISOs and RTOs should only worry about transmission, not the price of the commodity they are transmitting. Winning on this issue will be critical as RTOs are proposed throughout the country to meet Order 2000 obligations. Also, Enron needs to really go after FERC for abdicating its wholesale market authority to ISOs, especially ISOs like in California that are dominated by state political figures. FERC is responsible for ensuring just and reasonable rates, not some stakeholder Board established by state legislation. We need to argue strongly that FERC must take back this authority in the near term and utilize its administrative procedures to impose any market changes. Finally, given that it will be some period of time before there is truly a "financially indifferent" transmission provider under Order 2000, Enron must take an active role in working within and through the Boards of the current ISOs. A good example is the way that Dan Allegretti works within the NE-ISO. These Boards and the ISOs are fundamentally political organizations. Our representatives must take the time to get to know the people so that when key issues arise, we are able to influence the decisions. Thanks, Jim David W Delainey@ECT 06/29/2000 12:22 PM To: Richard Shapiro/HOU/EES@EES, David Parquet/SF/ECT@ECT cc: John J Lavorato/Corp/Enron@Enron, Tim Belden/HOU/ECT@ECT, James D Steffes/HOU/EES@EES, Kevin M Presto/HOU/ECT@ECT Subject: california Guys, good job with the California issues - we didn't get everything but we managed the position in a very effective manner. Jim, given our view to support the growth of the ISO structures as a necessary evil and given the socio-political leaning of these entities, should we be more actively or aggressively supporting or nominating directors on these boards? Jim/Rick, we need a full court press on this NEPool ICAP issue - Allegretti is putting plan in place. Regards Delainey
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