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Enron Mail |
I spoke with Phil Harris today.
My key messages - 1. Commercial interest does not appear high on partnering / investing with PJM Technologies right now. Doesn't mean that this is forever, but probably will want to gauge the markets reaction to your activities before . 2. We've drafted a Stipulation for Enron and PJM that gets most of Enron on board that I'm happy to send to your lawyers, but I want to be realistic about its chances of success - a) appointment of a Settlement Judge (not Technical Staff) to oversee the consolidation process with quarterly updates and right to comment from all parties; b) PJM will agree to modify its system including 1) FTR system, 2) eliminate ICAP obligation, and 3) discussion about central market making functions (day ahead markets). c) a more specific obligation to move forward with the ability for Enron file at FERC on Nov.1.02 to repeal this status with PJM pre-approval on our filing (I went beyond the agreeing not to oppose such a filing). He agreed with me that PJM wouldn't be able to sign. We talked a little about a middle ground, but he and I did not see any real options. Given the time commitments for his lawyers, he is going to file something that would (a) agree to a Settlement Judge, (b) ask FERC not to predetermine any outcomes, especially a merger, and © don't hold his RTO hostage to our demands. I think that given the Alliance RTO and GridSouth RTO language, he'll get his Order. We agreed to keep talking. I told him that we are trying to enter into discussions with the PA PUC about moving their market further ahead and I'd keep him in the loop. He told me that he would be on C-SPAN this Wed am to discuss competition. He really is a big believer in this market. Finally, and most interestingly, he did not oppose the idea of minimizing the central market making functions of PJM. He does not have a philosophy that the Sys Op must manage all of the markets (I specifically asked about Day Ahead). He does see a need for a workable solution that can shore up public confidence right now. He would like to migrate to a more market driven environment in a reasonable timeframe. He fully agrees that the market is better than a Sys Op in determining what happens - his limitations are technology and systems. Ultimately the Sys Op should do nothing more than manage the network within the last 10 minute interval.
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