ISO To Participate in Super Peak Market

Check this out. I think that we need to be signed up for this.
---------------------- Forwarded by Tim Belden/HOU/ECT on 08/28/2000 06:14 AM
---------------------------

Enron Capital & Trade Resources Corp.

From: Gary Ackerman <foothi19@idt.net< 08/26/2000
02:21 PM

Please respond to foothi19@idt.net
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cc:
Subject: ISO To Participate in Super Peak Market

Folks,

Late Friday afternoon Ziad called me. The ISO Governing Board earlier
the same day turned down the ISO management's request to force SCs to
place 95% of their scheduled load in the DA market. That leaves the ISO
little choice but to venture into the energy markets to procure power to
cover their peak hours on hot days.

Terry gave Ziad the OK to proceed with placing both the APX and
California PX screens for this new product/matching-service. I am
working with the two vendors and the ISO to make this happen quickly.
We anticipate that the market will open on Tuesday, September 5, or
earlier.

Key people who you may need to contact:
ISO - Ziad Alaywan 916-351-2140 (Nancy Traweek and Jim McIntosh are
also in the loop)
PX - Ken Czarnecki 626-537-3123
PX - John Yurkanin 626-537-3124
APX - Denice Cazalet 408-517-2123
APX - Michael Heinrich 408-517-2159

Please feel free to contact me with your questions. Several of you have
not had the opportunity to attend the pre-design meetings we had at the
California PX and APX a few weeks ago, nor were you aware of the joint
WPTF/ISO meeting held last week. But in essence, what this
product/matching-service will allow you to do is post bids to sell, or
buy a 6-hour block of capacity at a firm energy price across the hours
of HE13 to HE18. You can bid at COB, Mead, PV, SP15 or NP15. You can
utilize either the CalPX or APX to post your bids, because the ISO will
be watching both screens. The block sizes are (supposed to be) 25MW.
The seller is responsible for arranging transmission to the delivery
point, and the buyer (e.g., ISO) is responsible for arranging
transmission service from the delivery point. The ISO will make its
purchase decisions for the day-of at or before 8:00 a.m. The ISO will
send out a general notice when it needs offers to sell on the super-peak
market. I expect that bids for either buy or sell will be able to be
posted at any time, 24 hours. The screens should allow parties to post
buy or sell bids at least 60 days forward of the trade day.

You are not limited to a price cap in these markets, but the ISO as a
buyer has the right to not purchase at prices above it's price cap.

I think WPTF members should be very proud that we were able to quickly
work together, and with the ISO to create this market. I have no doubt
the ISO will be offering bids to purchase starting Sept 5, and going
forward 60 days. However, who among you will be willing and able to
post bids to sell?

gba