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Enron Mail |
Cc: paul.dawson@enron.com, paul.hennemeyer@enron.com, nailia.dindarova@enron.com,
bruno.gaillard@enron.com, steven.kean@enron.com, mark.schroeder@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: paul.dawson@enron.com, paul.hennemeyer@enron.com, nailia.dindarova@enron.com, bruno.gaillard@enron.com, steven.kean@enron.com, mark.schroeder@enron.com X-From: Alfredo Huertas X-To: Peter Styles X-cc: Paul Dawson, Paul Hennemeyer, Nailia Dindarova, Bruno Gaillard, Steven J Kean, Mark Schroeder X-bcc: X-Folder: \Steven_Kean_Nov2001_4\Notes Folders\Discussion threads X-Origin: KEAN-S X-FileName: skean.nsf Italy This is not very illustrative example. Utilities (ENEL distcos and municipalities) will not be allowed to sign long-term supply contracts with producers (ENEL gensets or divested ENEL gensets). Even, according to the last draft of market design recently published by the regulator, the single buyer will also need to procure power for non-eligibles through the forthcoming pool. ENEL's divestiture has rather more to be with limiting market power and spurring competition than securing supplies. Portugal This could be more helpful. Here, the dominant SEP (public sector, ie, tied gencos and tied customers) security of supply is based on a rock-sodlid long-term power purchase agreements. The SEP is characterised by long-term contracts between REN (the TSO), public and private (vgr. Pego, owned by National Power, Endesa, EdF and EdP) gencos and the four EdP's distributors. Individual power purchase agreements are concluded for each plant, and cover the plant's entire economic lives and commit gencos to sell to REN exlcusively. New power plants to be dedicated to SEP will be open to tender, according to a central planning. REN buys power from these tied gencos at each plant's costs and sell to the distcos at a uniform rate, the bulk supply tariff (BST). Unfortunately, the record of the tendering process open to private investors is not either long or very transparent, and we could not draw many good lessons from this. For example, EdP has been trying in the last two years to build additional capacity for SEP without a tendering procedure. a. 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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