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Enron Mail |
Rick -- per my voicemail -----Original Message----- From: =09Shapiro, Richard =20 Sent:=09Monday, September 24, 2001 9:37 AM To:=09Kean, Steven J. Subject:=09FW: FW: ERCOT Residential/Industrial Service Mix Requirements FYI -----Original Message----- From: =09Kingerski, Harry =20 Sent:=09Monday, September 24, 2001 9:18 AM To:=09Shapiro, Richard Cc:=09Keene, Patrick Subject:=09FW: FW: ERCOT Residential/Industrial Service Mix Requirements ... some recent history. I had left the message with Rogers Herndon. -----Original Message----- From: =09Keller, James =20 Sent:=09Thursday, August 23, 2001 11:12 AM To:=09Castano, Marianne Cc:=09Kingerski, Harry; Ogenyi, Gloria Subject:=09Re: FW: ERCOT Residential/Industrial Service Mix Requirements You are correct! This is not a new issue, but it seems to resurface on a r= egular basis. The issue has been pointed out regularly (the first time in = connection with the license and regularly thereafter) and each time the bus= iness has said not to worry, if they can't cut a deal with New Power they w= ill just pay the $1/MW. EES has assumed it will pay the $1/MW since day on= e! =09Jim =20 Marianne Castano 08/23/2001 08:33 AM To:=09Harry Kingerski/ENRON@enronXgate @ ENRON, Gloria Ogenyi/Enron@EnronXG= ate cc:=09James E Keller/HOU/EES@EES=20 Subject:=09Re: FW: ERCOT Residential/Industrial Service Mix Requirements = =20 Harry and Gloria: Jim Keller and I have indeed dealt with this issue in the past (it actually= came up at the time we were applying for our TX marketer license).=20 It is my understanding, and Jim, please comment if my information is "stal= e", that we were going to choose the option set forth in Sec. 39.352(g)(3),= which allows us to make a payment into the System Benefit Fund. This appr= oach was discussed with Dennis Benevides, and then, I believe, with Don Bla= ck, and they were OK with our pursuing this course, in lieu of having TNPC = provide service to residentials on our behalf.=20 Please call me if you have any questions: 814-835-0793. =20 Marianne From:=09Harry Kingerski/ENRON@enronXgate on 08/22/2001 04:06 PM To:=09Marianne Castano/HOU/EES@EES cc:=09=20 Subject:=09FW: ERCOT Residential/Industrial Service Mix Requirements Marianne - per my voicemail. -----Original Message----- From: =09Ogenyi, Gloria =20 Sent:=09Wednesday, August 22, 2001 12:06 PM To:=09Hamb, Edward Cc:=09Blachman, Jeremy; Gahn, Scott; Letke, Eric; Wood, James; Presto, Kevi= n M.; Curry, Mike; Wagner, Joseph; Misra, Narsimha; Dietrich, Janet; Collin= s, Patricia; Keene, Patrick; Kingerski, Harry; Steffes, James D.; Ryall, Je= an; Shapiro, Richard; Herndon, Rogers; Nicolay, Christi L. Subject:=09ERCOT Residential/Industrial Service Mix Requirements Ed, Residential Obligation Section 39.352(g) of Senate Bill 7 provides that for any REP serving an agg= regate load in excess of 300 MW, 5% of the load must consist of residential= customers. A REP can fulfil this requirement by: 1. Demonstrating that it directly serves residential load amounting to 5% o= f its total load 2. That another REP serves the residential load on its behalf, or 3. It pays 1 dollar per MWH of required 5% load into the System Benefit Fun= d. EES can fulfil its obligation by entering into an agreement with New Power= to serve residential load on its behalf, or can pay the 1$ per MWH penalty= . There is an annual compliance reporting requirement and EES can demonstrate= compliance if it has an agreement with New Power. EES Contract, For price to beat customers, the utilities have by Commission rule, the obl= igation to allow customers to come and go without restraint for the 5 year = period conmmencing 1/2/02. The Commission concern may be that Enron will ab= use this provision by gaming the system. The Enron contracts as currently w= ritten are within the rules as approved by the Commission. Until the utilit= ies move to amend the relevant rules, the Commission can only exercise its = displeasure by appropriate oversight and enforcement to determine what cond= uct amounts to abuse and gaming. I think it will ultimately be a question o= f degree and pattern of switching. The onus will be on the affiliated REPs = to prove abuse and gaming. Fundamentally, it is in the best interest of the= market to allow customers to come and go. Customer mobility is the best cu= stomer protection in a competitive market. Besides, a restraint on customer= mobility could have a chilling effect on competition as it will increase c= ustomer inertia. The Commission will carefully weigh any course of action t= o insure that they achieve a reasonable balance. For larger than 1MW custom= ers, they can agree to long term contracts and a restriction on their abili= ty to come and go. Please call with any questions, Gloria -----Original Message----- From: =09Hamb, Edward =20 Sent:=09Wednesday, August 22, 2001 10:32 AM To:=09Ogenyi, Gloria Subject:=09Re: Update: Enron Direct Telesales Initiative in NY, NJ and TX To:=09ehamb@enron.com cc:=09=20 Subject:=09ERCOT Residential/Industrial Service Mix Requirements get on this. we need to discuss ---------------------- Forwarded by James M Wood/HOU/EES on 08/22/2001 10:2= 0 AM --------------------------- From:=09Rogers Herndon/ENRON@enronXgate on 08/22/2001 09:27 AM To:=09Jeremy Blachman/HOU/EES@EES, Scott Gahn/HOU/EES@EES, Eric Letke/HOU/E= ES@EES, James M Wood/HOU/EES@EES cc:=09Kevin M Presto/ENRON@enronXgate, Mike Curry/ENRON@enronXgate, Joseph = Wagner/ENRON@enronXgate, Narsimha Misra/ENRON@enronXgate, Janet R Dietrich/= HOU/EES@EES=20 Subject:=09ERCOT Residential/Industrial Service Mix Requirements Everyone - =20 I was just informed by EPMI that there may be a requirement for Retail Ener= gy Providers in ERCOT to serve a certain mix of residential rate class/indu= strial rate class customers once a certain industrial threshold is crossed = (300 Mw of industrial rate class load). =20 EWS has not set it itself up to monitor such requirements. Therefore, I ca= nnot comment on the accuracy or details of this requirement. However, it i= s something we definitely need to look into. In addition, we (EPMI/EWS) ar= e getting feedback from the TX PUC that they are not pleased with how they = see the pilot and the market structure unfolding. Specifically, they are n= ot pleased with retail energy providers' contracts that contemplate the rig= ht to switch between direct access and tariff (and visa-versa). We will mo= nitor and need to get more clarity on how the PUC intends to address their = displeasure. On the residential requirement front, someone needs to address this. Speci= fically, is this true. If so, what rate classes are considered industrial = vs. commercial? Is there a similar requirement for commercial load? Is TI= considered industrial? Do we already have industrial customers in our por= tfolio? Who in EES tracks and monitors issues like these as we enter marke= ts? Mike Curry is in the process of tracking this info down from an EPMI perspe= ctive as they are focusing on more of the pure, large industrial customers.= We will share any information Mike receives with the EES group.=20 RH <Embedded Picture (Device Independent Bitmap)< <Embedded StdOleLink<
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