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Enron Mail |
Cc: peter.styles@enron.com, mark.schroeder@enron.com
Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: peter.styles@enron.com, mark.schroeder@enron.com X-From: Paul Dawson X-To: Steven J Kean X-cc: Peter Styles, Mark Schroeder X-bcc: X-Folder: \Steven_Kean_Nov2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf I'm not sure the RECs provide an example of an auction supply process. In the first few years after privatisation, many RECs signed long-term PPAs and took equity in Independent Power Producers. They were allowed to pass the associated purchase costs through to consumers. Apart from that I believe their purchasing was via a mix of longer-term and shorter term purchases mainly off the major generators. The RECs individual purchasing decisions were at their discretion and I'm not aware of any centralised, public auction that has been used in the form anticipated in California. The only example I can think of an "auction" was in the other direction: Nuclear Electric used to sell off its power via an auction style route while in public ownership. I also can't think of any international examples which fit the Californian idea, but I'll rack my brains further. Paul Peter Styles 01/10/2000 17:31 To: Paul Dawson/Govt. Affairs/LON/ECT@ECT, Paul Hennemeyer/LON/ECT@ECT, Alfredo Huertas/LON/ECT@ECT cc: Nailia Dindarova/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Steven J Kean/NA/Enron@Enron, Mark Schroeder/LON/ECT@ECT Subject: RUSH RUSH: Examples of power supply auction processes [that worked] See note from Steve Kean below. Examples might occur to the three of you, even from your NERA days. Alfredo: The statutory obligation for ENEL to sell off generating capacity to independent third parties is more or less the opposite of the process suggested to Governor Davis, but might be worth describing anyway. Paul D.: You are a direct recipient of the note. Also worth describing the previous longer term contracting practices of the E&W RECs? Bruno: EFET has suggested to the Paris Bourse that the only way to kick start a traded power market in France would be for EdF to auction packages of generation output to new entrants; again this is really the opposite of the California situation, but may be of interest. Get details from Nailia (in London tomorrow.) In view of tight deadline please e-mail or call Steve (cc Mark , and let me know beforehand) on Monday by noon Houston time (currently only 5 hours behind, thus 5pm London time) with any relevant descriptions. I am in London all day. ---------------------- Forwarded by Peter Styles/LON/ECT on 01/10/2000 17:15 --------------------------- From: Steven J Kean@ENRON on 29/09/2000 15:47 CDT Sent by: Steven J Kean@ENRON To: Mark Schroeder/LON/ECT@ECT, Tom Briggs/NA/Enron@Enron, Robert Hemstock/CAL/ECT@ECT, Peter Styles/LON/ECT@ECT, Daniel Allegretti/HOU/EES@EES, Steve Montovano/DUB/EES@EES, Janine Migden/DUB/EES@EES, Aleck Dadson/TOR/ECT@ECT, Paul Dawson/Govt. Affairs/LON/ECT@ECT cc: Subject: examples of auction processes that worked Jeff Skilling proposed a solution to Gov Davis to solve the supply and pricing problems in the California market. In summary, the proposal would have a neutral party conduct an auction wherein the utilities would seek bids for 5-10 year packages of power from suppliers. The gov asked if anyone had successfully conducted such an auction in the industry already. I need your help to identify and describe any such examples (European or North American) by mid day Monday. Jeff and I will have a follow up call with the governor on Monday. Thanks
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