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Enron Mail |
Below is a summary of my SWPTF, CAISO and SW IOU's meeting 10 days ago. The
meeting was very positive and it looks like we are getting traction on getting the SW IOU's to join the CAISO as an option to continuing with DSTAR. Call me if you have questions Tom Delaney 602-321-5017 ---------------------- Forwarded by Tom Delaney/Corp/Enron on 06/21/2000 02:45 PM --------------------------- Carl Imparato <cfi1@tca-us.com< on 06/19/2000 02:37:50 AM Please respond to cfi1@tca-us.com To: zalaywan@caiso.com, eschmid@caiso.com, crobinson@caiso.com, vkasarjian@caiso.com, tom.delaney@enron.com, marcie.milner@enron.com, smara@enron.com, scott.miller@gen.pge.com, curt.hatton@gen.pge.com, dcn@netwrx.net, rreilley@coral-energy.com, steve.huhman@southernenergy.com, mike.meclenahan@southernenergy.com, rlamkin@seiworldwide.com, lebarrett@duke-energy.com, sslavigne@duke-energy.com, john_r_orr@reliantenergy.com, gkelly@bdrnet.com, jmpa@dynegy.com, kewh@dynegy.com, mbochotorena@calpx.com, tfitchitt@newenergy.com, cmiessner@newenergy.com, marceline_otondo@apses.com, bob_anderson@apses.com, barbara_klemstine@apses.com, lcampbell@csllp.com, locb@rt66.com, reickley@ci.scottsdale.az.us, cary.deise@aps.com, joel.spitzkoff@aps.com, david.rumolo@pwenergy.com, tdelawder@tucsonelectric.com, ebeck@tucsonelectric.com, mflores@tucsonelectric.com, gmiller@pnm.com, dbrown1@pnm.com, dmalone@epelectric.com, rick.y.ito@us.pwcglobal.com, tanuj.khandelwal@us.pwcglobal.com, ptaylor@rwbeck.com cc: Subject: Update on Discussions between CAISO and DSW Parties The purpose of this e-mail is to update the recipients on the status of the discussions that have been taking place, between the CAISO and Desert Southwest market participants and transmission owners, on the possible merger of the California and Desert Southwest regions into a single RTO. On June 5, a meeting was held in Phoenix to discuss the terms under which various parties would seriously consider a proposal for consolidation of California and the DSW under a single RTO operated by the CAISO. This was the second meeting that was held to discuss this idea. Represented were the CAISO, APS, PNM, TEP, EPE, TNP, APSES, NewEnergy, Enron, Calpine, PG&E Gen, Southern, Duke, Cal PX, and DOE. The issues that were discussed included the CAISO's ability to implement the major components of the DSTAR commercial model, the changes that would need to be made in the CAISO's governance and internal structure, and costs. The parties at the meeting were generally in favor of: (i) consolidating the existing control areas into a single control area as soon as possible, (ii) migrating to a common set of market protocols on a fairly rapid basis, (iii) creating a single, independent, RTO governing board with no bias in favor of either California or the Desert Southwest region, and (iv) migrating from a regional advisory committee structure to a single advisory committee structure as soon as possible, to avoid balkanization and accelerate convergence. Most parties felt that there were, at this time, no "show-stoppers" on most of the issues. For many of the participants, the most significant outstanding questions were: (i) the costs (both $/MWh and cost shifts) that Desert Southwest parties would incur under the consolidation scenario, and (ii) timing - i.e., whether the necessary implementation, governance and organizational changes could be put into place by a target date of June 2001. It was agreed that the next step was for the CAISO, working with interested parties, to provide a tentative implementation cost (both with and without consolidation of DSW control areas, but in both cases with independent procurement and operation of ancillary services). The agreed-upon Action Plan was as follows: June 9: CAISO to develop list of questions which need to be answered to enable it to develop a cost estimate June 16: CAISO to respond to the list of questions generated at the June 5 meeting June 16: CAISO to be provided with responses to the CAISO's list of questions June 16: Transmission owners to provide to the CAISO their definition of the scenario(s) that they desire the CAISO to consider in developing its cost estimate July 10: CAISO to provide cost estimate July 20: Meeting in Phoenix to discuss the cost estimate, address any additional questions, and discuss the viability and possible contents of a Memorandum of Understanding (MOU) July 31: Decision from all interested parties regarding their desire to move forward August 15: Assuming a positive outcome on July 31, meeting to discuss finalization of an MOU which would address the commitments of the parties, market structure, changes in governance, organizational goals, priorities and structures, etc. Status: The first four items above are close to completion. The CAISO has sent a list of technical questions to Carl Imparato and he is completing a response. The CAISO is completing its response to the list of questions it received on June 5. The interested transmission owners have defined the scenarios that they wish to see considered by the CAISO. When all of these documents are finalized, which I expect to occur in the next 2-3 days, I will forward them to all of the addresses. If you have any questions, please give call me at 510-558-1456. Carl Imparato
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