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Enron Mail |
Mary says the traders in Portland want to get involved and want to resurrec=
t=20 discussions about a reverse auction mechanism for forward contracts to smoo= th=20 out the price spikes. I think we ought to press on this issue and see if= =20 Kari can help us elevate the profile of this solution and start getting=20 specific. =09Jeff Dasovich =09Sent by: Jeff Dasovich =0911/30/2000 11:19 AM =09=09 =09=09 To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Pa= ul=20 Kaufman/PDX/ECT@ECT, Sandra McCubbin/NA/Enron@Enron, Susan J=20 Mara/NA/Enron@ENRON, James D Steffes/NA/Enron@Enron, Karen=20 Denne/Corp/Enron@ENRON =09=09 cc:=20 =09=09 Subject: Re: Options the Governor's Considering FYI: Set up a meeting with Kari Dohn for next Wednesday. =09Steven J Kean =0911/27/2000 09:22 PM =09=09 =09=09 To: Jeff Dasovich/NA/Enron@Enron =09=09 cc: Alan Comnes/PDX/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Joe=20 Hartsoe/Corp/Enron@Enron, Karen Denne/Corp/Enron@Enron, Mary=20 Hain/HOU/ECT@ECT, Mona L Petrochko/NA/Enron@Enron, mpalmer@enron.com, Paul= =20 Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Sandra=20 McCubbin/NA/Enron@Enron, Sarah Novosel/Corp/Enron@Enron, skean@enron.com,= =20 Susan J Mara/NA/Enron@Enron, Tim Belden/HOU/ECT@ECT, David Parquet/SF/ECT@E= CT =09=09 Subject: Re: Options the Governor's Considering Jeff Dasovich and I, along with several IEP members, met with Gov Davis'=20 staff today, including his Chief of Staff, his Staff Director and two polic= y=20 advisors on energy issues. They made the following points: The Governor is personally spending a great deal of time on electricity=20 issues (and is forcing them to spend their time on it as well). The Governor recognizes that part of the problem is a supply shortage, but= =20 they put special emphasis on the view that in addition to supply shortfalls= ,=20 a big part of the problem is a "dysfunctional market" -- a thinly veiled=20 reference to price manipulation by people sitting in the room. The Governor's view is that all participants (regulators, utilities,=20 customers and generators) must "behave responsibly". Everyone must "share the pain". The legislative battles are likely to start as soon as the legislature=20 returns next week, and the Governor will be putting forth several legislati= ve=20 proposals in the next couple of weeks. While staff went out of its way to say that the list of proposals (in the= =20 attached e-mail) were unofficial and for discussion purposes only, it was= =20 fairly clear that they defined much of what the governor plans to propose. The meeting was not very encouraging nor did it provide much in the way of= =20 new information. The IEP group was on message, making the usual arguments= =20 about the need for forward contracting, expedited generation and transmissi= on=20 siting, a real retail market to promote demand side responses, etc. The=20 staff is clearly focussed on forward contracting as part of the solution bu= t=20 remains committed to the idea that generators have to cough up some money a= nd=20 remain subject to rate caps, possible restrictions on sales outside the sta= te=20 (at least at peak times), etc. One approach they appear to be toying with = is=20 a "share the pain" proposal which would have utilities absorbing some of th= e=20 deferred costs and consumers absorbing some of the deferred costs in the fo= rm=20 of higher rates. That leaves generators ... who they might want to either= =20 agree to some refunds or provide power at lower going-forward prices. The staff says that they remain open to proposed solutions, but the Davis= =20 administration appears unwilling to spend any political capital to fix the= =20 problem. =20 I think we are in for a lengthy legislative and PUC fight. We should, as= =20 always, provide consistent and reasonable solutions. I think we should=20 prepare a document for distribution to staff, legislators (and anyone else)= =20 that takes the factual background and proposed solutions we have put forwar= d=20 (eg in Belden's presentation and the Seabron Adamson whitepaper) and wraps= =20 them in a more political context. In other words, we have already=20 articulated the right answers; we now need to put a political rationale=20 around our proposals -- a set of arguments which responds directly to the= =20 political opposition those answers are likely to encounter. Jeff will foll= ow=20 up with one of the staff members in particular (Kari Dohn) and I would=20 suggest that Jeff and Sandi work together on putting the necessary politica= l=20 rhetoric around the solutions we have proposed. =09Jeff Dasovich =09Sent by: Jeff Dasovich =0911/22/2000 04:00 PM =09=09=20 =09=09 To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, Paul=20 Kaufman/PDX/ECT@ECT, Sandra McCubbin/NA/Enron@Enron, Mona L=20 Petrochko/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Joe=20 Hartsoe/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Sarah=20 Novosel/Corp/Enron@ENRON, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON,= =20 Alan Comnes/PDX/ECT@ECT =09=09 cc:=20 =09=09 Subject: Options the Governor's Considering Steve: FYI. Don't worry about the conference call, but thought it might b= e=20 useful to review the proposals prior to Monday's meeting. See you Monday. Happy Thanksgiving to all. Best, Jeff ***************************************************************************= *** ************************************** Several IEP companies have been invited to a meeting with the Governor=01,s= =20 staff next Monday, November 27th. The following are some options, which the Governor=01,s office is consideri= ng. =20 IEP is doing some preliminary research on some of these topics. IEP would= =20 like to arrange a teleconference call around noon on Monday, November 27th = to=20 discuss the Governor=01,s meeting. Please advise us as to whether your hav= e=20 been invited, and who you are sending. California=01,s electricity supply situation has two inter-related problems= =01)=20 (1) high wholesale electricity costs, and (2) marginally adequate supply of= =20 generation =01) both have combined to create a dysfunctional wholesale=20 electricity market. The goals should be: To assure reliable electricity to California consumers for the lowest=20 reasonable cost. o Consider requiring that all in-state generation be sold in state. o Consider re-asserting state authority over the operation, maintenance and= =20 safety practices of all in-state generating facilities=01, for public healt= h and=20 safety purposes. o Consider developing a state power authority to build generation and=20 own/operate transmission. o Consider requiring utilities both to retain existing and to build new=20 generation. o Consider providing utilities with authority to stabilize retail prices to= =20 be paid by consumers through development of an energy portfolio that reduce= s=20 exposure to spot markets, including contracting forward for much more of=20 their unmet power needs. o Consider extending consumer rate freeze. o Consider centralizing power plant dispatch like the other ISOs in the res= t=20 of the country. o Consider eliminating the ISO and assigning its functions to either a stat= e=20 or private entity that can acquire the transmission facilities, and control= =20 the electricity transmission grid (MUNIs have proposed this). o Consider sponsoring/supporting legislation to change the ISO and PX board= s=20 to increase accountability. o Expand energy conservation programs focused both on immediate peak demand= =20 reduction and on longer term, broader-based programs. o Aggressively work to site new generation and transmission facilities, to= =20 streamline permitting, and to develop renewable resources. o Call for/sponsor federal FERC reform legislation that would: o Impose a regional price cap that varies by time of day and year; o Set requirements for FERC to use its retroactive refund authority; o Improve FERC enforcement over price gouging practices; o Affirm the role of states to protect their customers from unjust prices. o Pressure the FERC to do its job to (1) bring about responsible seller=20 behavior in wholesale electric markets through price controls and other=20 market interventions as necessary, and (2) provide refunds to affected=20 consumers. ----- Forwarded by Jeff Dasovich/NA/Enron on 11/22/2000 03:44 PM ----- =09Susan J Mara =0911/22/2000 03:05 PM =09=09 =09=09 To: "CHUDSON" <carol@iepa.com< =09=09 cc: "Andy Brown \(E-mail\)" <abb@eslawfirm.com<, chudson@iepa.com, "= Curtis=20 Kebler \(E-mail\)" <curtis_l_kebler@reliantenergy.com<, "Delaney Hunter=20 \(E-mail\)" <dhunter@smithandkempton.com<, "Greg Blue \(E-mail\)"=20 <gtbl@dynegy.com<, "Jack Pigott \(E-mail\)" <jackp@calpine.com<, "Jeff=20 Dasovich \(E-mail\)" <jdasovic@enron.com<, "Joe Ronan \(E-mail\)"=20 <joer@calpine.com<, "John Stout \(E-mail\)" <John_H_Stout@reliantenergy.com= <,=20 jparker@HMOT.com, "Katie Kaplan \(E-mail\)" <kaplan@iepa.com<,=20 kelly@hnks.com, "Kelly Norton \(E-mail\)" <knorton@mcnallytemple.com<, "Lyn= n=20 Lednicky \(E-mail\)" <lale@dynegy.com<, marie_moretti@msn.com,=20 mrmonagan@aol.com, "Bob Weisenmiller \(E-mail\)" <rbw@mrwassoc.com<, "Bob= =20 Escalante \(E-mail\)" <rescalante@riobravo-gm.com<, "Rob Lamkin \(E-mail\)"= =20 <rllamkin@seiworldwide.com<, "Jan Smutny-Jones \(E-mail\)" <smutny@iepa.com= <,=20 "Steven Kelly \(E-mail\)" <steven@iepa.com<, "Susan J Mara \(E-mail\)"=20 <Susan_J_Mara@enron.com<, "McNally Temple Assn. Inc. \(Business=20 Fax\)"@mail.cwo.com =09=09 Subject: Re:=20 Jeff Dasovich and Steve Kean are attending. Someone can be on a call -- me= =20 if no one else -- if Jeff and Steve are travelling at the time. Hey, does t= he=20 Governor have to fly coach? =09"CHUDSON" <carol@iepa.com< =0911/22/2000 12:47 PM =09=09=20 =09=09 To: "Katie Kaplan \(E-mail\)" <kaplan@iepa.com<, "Jeff Dasovich \(E-= mail\)"=20 <jdasovic@enron.com<, "Kelly Norton \(E-mail\)" <knorton@mcnallytemple.com<= ,=20 "John Stout \(E-mail\)" <John_H_Stout@reliantenergy.com<, "Curtis Kebler=20 \(E-mail\)" <curtis_l_kebler@reliantenergy.com<, "Rob Lamkin \(E-mail\)"=20 <rllamkin@seiworldwide.com<, "Bob Weisenmiller \(E-mail\)"=20 <rbw@mrwassoc.com<, "Susan J Mara \(E-mail\)" <Susan_J_Mara@enron.com<, "An= dy=20 Brown \(E-mail\)" <abb@eslawfirm.com<, "Bob Escalante \(E-mail\)"=20 <rescalante@riobravo-gm.com<, "Greg Blue \(E-mail\)" <gtbl@dynegy.com<, "Ja= ck=20 Pigott \(E-mail\)" <jackp@calpine.com<, "Jan Smutny-Jones \(E-mail\)"=20 <smutny@iepa.com<, "Joe Ronan \(E-mail\)" <joer@calpine.com<, "Lynn Lednick= y=20 \(E-mail\)" <lale@dynegy.com<, "McNally Temple Assn. Inc. \(Business=20 Fax\)"@mail.cwo.com, "Steven Kelly \(E-mail\)" <steven@iepa.com<, "Susan J= =20 Mara \(E-mail\)" <Susan_J_Mara@enron.com<, <mrmonagan@aol.com<,=20 <marie_moretti@msn.com<, "Delaney Hunter \(E-mail\)"=20 <dhunter@smithandkempton.com<, <kelly@hnks.com<, <jparker@HMOT.com<,=20 <chudson@iepa.com< =09=09 cc:=20 =09=09 Subject:=20 Jan Smutny-Jones, Exec Dir Independent Energy Producers Assn. 1112 I Street, Suite 380 Sacramento, CA 95814 PH: 916-448-9499 FX: 916-448-0182 iepa@iepa.com - Govs meeting Conf Call.doc
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