Enron Mail

From:steven.kean@enron.com
To:cynthia.sandherr@enron.com
Subject:Re: Stand-alone Reliability Legislation
Cc:joe.hartsoe@enron.com, richard.shapiro@enron.com, dwatkiss@bracepatt.com,cingebretson@bracepatt.com, joe.hillings@enron.com, ed@buckham.com, jeff.brown@enron.com
Bcc:joe.hartsoe@enron.com, richard.shapiro@enron.com, dwatkiss@bracepatt.com,cingebretson@bracepatt.com, joe.hillings@enron.com, ed@buckham.com, jeff.brown@enron.com
Date:Mon, 17 Jul 2000 09:01:00 -0700 (PDT)

I believe it is timely to discuss this again and I agree with Cynthia that
stand alone legislation does nothing to address the essential transmission
structural issues.

I am open minded on the issue if someone can make a compelling case to
support stand alone legislation, BUT my gut reaction is that it would be a
serious mistake. Congress would happily put off dealing with this issue for
years if it passes reliability only legislation. I think the legislation
itself makes little or no progress on our issues and may even set us back on
making progress at FERC and in other fora.

I realize that if this gets going it may be hard to stop, but it would be
such a cynically ineffective approach to the real reliability problems that
we should help whomever we can to put a stop to it. If it gets through
committee, I have no confidence in this Congress to actually amend it into
something better and broader, so, again, I have difficulty seeing why we
should go that route.

I look forward to the discussion.



Cynthia Sandherr@ENRON
07/17/2000 02:20 PM


To: Joe Hartsoe/Corp/Enron@ENRON
I
cc: Richard Shapiro/HOU/EES@EES, Steven J Kean/HOU/EES@EES,
dwatkiss@bracepatt.com, cingebretson@bracepatt.com, Joe
Hillings/Corp/Enron@ENRON, ed@buckham.com, Jeff Brown/HOU/EES@EES
Subject: Re: Stand-alone Reliability Legislation

Joe: thanks. Allison is arranging a brief (thirty minutes) Conference Call
for sometime tomorrow so we can assure that we are all on the same page on
this issue. Although we had supported the policy agreement, we had been on
record to oppose for political reasons the bill's movement on a stand-alone
basis since policing the grid does nothing to address the essential
transmission structural changes the market is crying to have addressed in
order to provide reliability. However, given Jeff Brown's efforts, the
political need for inoculation and other political developments, it is timely
to once again discuss Enron's position. I look forward to our call sometime
tomorrow. Cynthia



Joe Hartsoe
07/17/2000 03:09 PM
To: Richard Shapiro/HOU/EES@EES, Cynthia Sandherr/Corp/Enron@ENRON
cc:

Subject: Stand-alone Reliability Legislation

FYI. Thoughts? JOE
---------------------- Forwarded by Joe Hartsoe/Corp/Enron on 07/17/2000
03:01 PM ---------------------------


janderson <janderson@elcon.org< on 07/17/2000 12:34:47 PM
To: jhartso@enron.com
cc: myacker@elcon.org, dwatkiss@bracepatt.com

Subject: Stand-alone Reliability Legislation


Joe,

It is my understanding that you were on the call for a short time this
morning of the group dealing with reliability language. The discussion
covered the chances of stand-alone reliability legislation.

Where do you stand on this issue?

As you are aware, ELCON has been opposed to any kind of stand-alone
legislation -- including reliability. At first, we were not strongly
opposed to the stand-alone reliability piece. However, we have become more
opposed as time has passed and we have seen how the vertically-integrated
recalcitrant utilities have been able dominate NERC and stifle any
progressive market-oriented movement. We think things would be as bad --
if not worse -- with the stand-alone creation of NAERO. The establishment
of NAERO -- alone -- would not be good for the development of markets.

Given this, we are concerned about how things are going. However, we
aren't doing much on our own since we would be very ineffective. We are
open to ideas.

John