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Actually Thane you are hitting on exactly what I was referring too. While this impacts the REC program, it's really a transmission issue. Given our forward sale of RECs from the Pecos facility, I want to make sure that we don't get hit w/ unexpected costs associated with transmission. The Renewable Coalition is preparing for meeting with the Commissioners to propose solutions and try to mitigate any unforeseen fees associated with transmission (i.e. if lines are overloaded and trip/congestion etc.). Depending upon how Doug and Mike determine this would affect us, I wanted to make sure we have a strategy/plan to respond if necessary. Transmission is not my issue, but I'm certainly glad to facilitate us working through the renewable coalition to ensure our issues are being represented. Thoughts?
Stacey Bolton Environmental Strategies Enron Corp 713-853-9916 direct 713-303-2632 cell sbolton@enron.com <mailto:sbolton@enron.com< -----Original Message----- From: Twiggs, Thane Sent: Wednesday, September 19, 2001 8:58 AM To: Bolton, Stacey; Curry, Mike; Gilbert-smith, Doug Cc: Ryall, Jean; Ring, Richard; Mainzer, Elliot Subject: RE: REC fees/TX transmission I have not followed the REC program, but I have heard in the ERCOT CSC determination meeting that they (ERCOT) have concerns in west Texas due to the large amount of wind generation. It is my understanding that last Friday a line tripped, due to the wind generation according to John Adams at ERCOT. When you say keep an eye on transmission, what do you mean? -----Original Message----- From: Bolton, Stacey Sent: Tuesday, September 18, 2001 3:41 PM To: Curry, Mike; Gilbert-smith, Doug Cc: Twiggs, Thane; Ryall, Jean; Ring, Richard; Mainzer, Elliot Subject: REC fees/TX transmission I'm hearing that ERCOT is backing off from ever invoking a fee for the REC program. If you recall, ERCOT was going to take up this issue again at the end of year -- after initially suspending invoking any fees. With the REC program up and going, ERCOT has determined that the fees to operate the program are not as high as initially projected. We're hearing that in January they will likely permanently roll all the fees associated with running the REC program in with the overall market administration fees. This is good news. We need to keep a close eye on the transmission, though. If there are transmission constraints and congestion getting the wind power from West Texas, this will likely bump up the cost. Stacey Bolton Environmental Strategies Enron Corp 713-853-9916 direct 713-303-2632 cell sbolton@enron.com <mailto:sbolton@enron.com<
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