FW: Short Payment Notice

forwarding.
-----Original Message-----
From: =09Day, Smith L. =20
Sent:=09Monday, October 15, 2001 3:28 PM
To:=09Portz, David
Subject:=09FW: Short Payment Notice
Importance:=09High

Hi David:

This note appears more alarming than it is because the impact is only $6,50=
0.00 for the entire Ercot wide system according to our ERCOT client represe=
ntative in a phone conversation. In light of this Kevin Presto wanted to g=
et ideas from the legal world of what the impact might be if the shortfall =
was 65,000,000. =20

In my reading of 9.4.4 of the protocols ERCOT would have had to go after th=
e credit line of the non-paying QSE before taking the step of reducing paym=
ent of other QSE's.

I have to assume that these steps were taken and if so, then I would have t=
o assume that the initial shortfall was greater than $6,500.00 to begin wit=
h. If the credit lines of the offending QSE were not reached for by ERCOT =
then my question is, why not. These steps are clearly outlined in the Prot=
ocol.

I have contacted Thane Twiggs who is in Austin now to find more facts and w=
ill let you know when I hear from him.

Regards,

Smith L. Day
Enron Power Marketing, Inc.
Ph. 713-853-4201
Fax: 713-646-8272
Pager: 877-306-9429

-----Original Message-----
From: =09"Hailu, Ted" <THailu@ercot.com<@ENRON =20
Sent:=09Monday, October 15, 2001 12:35 PM
To:=09Amie Jackson; Amy L. Pratka; Andy Mitrey; Angela Williams; Beth Garza=
; Bill Palmer; Bob Cooper; Brady Edwards; Brenda Green; Carl Smith; Carl Sm=
ith; Dan Carey; Dan Sarti; Dana Leger; David Wessels; Debbie Pawlik; Debra =
Bailey; Dennis Dyc; Eric Slover; Frances Nitschmann; Gary Herndon; Ginger G=
eissler; James Striedel; Janet Holland; Miller, Jeffrey; Jenny Doyas; Jerry=
Burt; Joe Barker; Joe Favalora; John Forney; Kathy Fitzmaurice; kelly Mine=
ar; Kim Koliba; Lee Star; Linda Le Master; Lisa Jones; Liz Ramirez; Lora Ki=
nner; Marc Rubenstein; Maria Colby; Maria Gardner; Marianne Deane; Marice N=
ealy; Mark Wright; Martha Murphy; Max Bulk; Jacobson, Michael; Mike Coyle; =
Mike Tejada; Pat Vogelei; Paul Krebs; Radous, Paul; Peter Pavluk; Phillip R=
obinson; Ramesh Ganesh; Rhonda Hager; Rick Rucker; Rick Vick; Rick Williams=
on; Rosalie Day; Sam Davis; Sandra Eubank; Shannon Wagner; Shonda McKnight;=
Sonya Francois; Stacy Schamel; Stephanie Mullen; Susan Potters; Tamila Nik=
azm; Thomas Ho; Allen, Thresa A.; Tom White; Troy Martin; Valentin Petrov; =
Walt Kuhn
Cc:=091 Client Service Reps; Grendel, Steven; Bojorquez, William \"Bill\"; =
Noel, Tom; Jones, Sam; Tindall, Heather; 1 SCS Leads; Buckles, Maxine; Saat=
hoff, Kent; 1 Settlements & Billing Department
Subject:=09Short Payment Notice
Importance:=09High

QSEs that are owed monies from ERCOT on invoices that are due today, Octobe=
r 15, 2001, will notice that the amount of funds transferred is short of th=
e balance due on the invoice. This is a notification that ERCOT will follow=
the "short payment" procedure stated in the ERCOT protocols for payments b=
eing made to QSEs today. Due to short payments by one or more QSEs, ERCOT =
is insufficient of funds to pay all amounts in full. As described in the E=
RCOT protocols, section 9.4.4, ERCOT will deduct ERCOT administrative fees =
and reduce payments to all invoice recipients that are owed monies. The red=
uctions will be based on a pro rata basis of monies owed to each ERCOT cred=
itor for this invoice to the extent necessary to clear ERCOT's accounts on =
the payment date to insure revenue neutrality for ERCOT. ERCOT will distrib=
ute past due funds on a pro rata basis of monies owed on the next business =
day after receipt of the monies.=20
If you have any questions, please call your ERCOT client service representa=
tive.=20
Ted Hailu=20
Client Relations Manager=20
Electric Reliability Council of Texas=20
E-mail: Thailu@ercot.com=20
Telephone: (512) 248-3873