Enron Mail

From:luiz.maurer@enron.com
To:d..steffes@enron.com
Subject:RE: Alliance
Cc:
Bcc:
Date:Tue, 6 Nov 2001 08:56:56 -0800 (PST)

Jim

As per your request, I examined the attached doc (Response of National Grid=
US to Questions posed by the comission)

My initial reaction is:

1) The simple answer to your question is: yes, I think the proposed governa=
nce and organization structure can live with an LMP model. I am not familia=
r with other MISO CM model, but at least in terms of LMP, my feeling is tha=
t those are not mutually exclusive. It may be worth asking Ashley Brown

2) National Grid and other proponents of For-Profit-Transcos may have other=
ideas on how to manage congestions (e.g. different reliability level produ=
cts by customer segment). However, the attached paper makes no allusion to =
avoid LMP and to introduce other congestion management models. The paper do=
es not imply a physical model either. Your feeling may be right, but it doe=
s not surface from the paper per se.

3) National Grid proposal is, in fact, an expanded version of the Southeast=
Model proposed at the Mediation. It reinforces the role of the Transco Com=
pany, preempting, to some extent, the role of the System Admininstrator. Th=
is was a very controversial topic in the mediation: the System Adminstrator=
was in charge of some functions to avoid potential bias. (particularly fr=
om transmission companies who are not willing/able to transfer their T asse=
ts)

4) National Grid will face a lot of resistance when selling this idea; Your=
concerns on generation redispatch and long term transmission planning are =
"surfaced" in the paper, by creating a concept of "core vs. additional" fun=
ctions and a chinese wall, if necessary. But the perception of potential b=
ias does exist. National Grid will probably face a lot of difficulty in " s=
elling" this idea. Particularly when we get to the details

LM


-----Original Message-----
From: =09Steffes, James D. =20
Sent:=09Monday, November 05, 2001 4:50 PM
To:=09Maurer, Luiz; Stroup, Kerry; Roan, Michael; Nicolay, Christi L.
Subject:=09FW: Alliance

FYI. If we were to ask NG, could they live with the MISO CM/market model??

Thanks.

-----Original Message-----
From: =09Steffes, James D. =20
Sent:=09Monday, November 05, 2001 12:40 PM
To:=09Nicolay, Christi L.; Roan, Michael; Novosel, Sarah
Cc:=09Shapiro, Richard
Subject:=09FW: Alliance

NG proposal for "splitting" work between Transco and other parties. Don't =
think they do a great job of managing the key fears - (1) generation redisp=
atch and (2) long-term transmission plant over generation investments. =20

As I read this document, I get the strange feeling that NG is a physical-ri=
ght player. Meaning, NG needs to build a model based on physical flows so =
they can control (a) TTC/ATC and (b) use of non-firm transmission. =20

While the NG letter states that the "functions related to energy markets ca=
n be performed by a disinterested third-party", NG specifically reserves as=
a Core Function the "Ability to propose congestion pricing methodology". =
Sure APX could go in and operate the balancing and CM system, but NG has th=
e right to design subject to FERC procedures.

Not sure what you guys think? =20

I will probably get back to Ashley Brown later this week.

Jim

-----Original Message-----
From: =09"ASHLEY BROWN" <ACBROWN@LLGM.COM<@ENRON =20
Sent:=09Monday, November 05, 2001 9:18 AM
To:=09dennis.flaherty@cinergy.com; david.a.svanda@cis.state.mi.us; gary.r.k=
itts@cis.state.mi.us; greg.r.white@cis.state.mi.us; janet.c.hanneman@cis.st=
ate.mi.us; laura.chappelle@cis.state.mi.us; michael.a.fielek@cis.state.mi.u=
s; michel.l.hiser@cis.state.mi.us; robert.b.nelson@cis.state.mi.us; william=
.j.celio@cis.state.mi.us; harvey.reed@constellation.com; Mfgildea@dukeenerg=
y.com; rfahey@edisonmission.com; Steffes, James D.; airobbins@gkase-law.com=
; rrismill@icc.state.il.us; Snaumer@icc.state.il.us; tharvill@icc.state.il.=
us; diane.munns@iub.state.ia.us; gforman@mail.state.ky.us; gwgillis@mail.st=
ate.ky.us; rgraff@mail.state.ky.us; rsphillips@mail.state.ky.us; rkind01@ma=
il.state.mo.us; wsmith@max.state.ia.us; skelly@mbolaw.com; Jim.mayhew@miran=
t.com; mina.turner@mirant.com; susann.felton@mirant.com; Srandazzo@mwncmh.c=
om; ervin@ncuc.net; richard.doying@neg.pge.com; clane@psc.state.wv.us; dell=
is@psc.state.wv.us; don.howard@puc.state.oh.us; judy.jones@puc.state.oh.us;=
Kim.wissman@puc.state.oh.us; nicci.crocker@puc.state.oh.us; eckenrod@puc.s=
tate.pa.us; levin@puc.state.pa.us; jcrowley@pwrteam.com; jorr@reliant.com; =
cwalker@scc.state.va.us; boyntonh@state.mi.us; bborum@urc.state.in.us; Bpau=
ley@urc.state.in.us; dhadley@urc.state.in.us; dziegner@urc.state.in.us
Cc:=09Paul Connolly; nick.winser@us.ngrid.com; paul.halas@us.ngrid.com
Subject:=09Alliance

Attached please find a copy of the paper entitled "Response of National Gri=
d USA to Questions Posed by the Commission" for your review.




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- National Grid Transco White Paper.doc << File: National Grid Transco Whi=
te Paper.doc <<