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Enron Mail |
By agreeing to pay only for "reasonable" offers, DWR left itself a loophole
big enough to drive a truck through: "DWR will assume financial responsibility for all purchases by the ISO in its ancillary services and imbalance energy markets based bids or other offers determined to be reasonable. Such determination of reasonableness will be made by DWR on a case by case basis and communicated to the ISO." (Emphasis added.) Susan J Mara@ENRON 04/16/2001 09:06 AM To: Christian Yoder/HOU/ECT@ECT, gfergus@brobeck.com, jalexander@gibbs-bruns.com, James D Steffes/NA/Enron@Enron, Ray Alvarez/NA/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Michael Tribolet/ENRON@enronXgate, Steve C Hall/PDX/ECT@ECT, Jubran Whalan/HOU/EES@EES, Neil Bresnan/HOU/EES@EES, Tim Belden/HOU/ECT@ECT, Harry Kingerski/NA/Enron@Enron cc: Subject: CAISO Notice: Market Notice re: Credit Issues FERC finally got resolved what CA could not. I believe this also takes care of our credit issue on the ISO's demand response programs. Sue Mara Enron Corp. Tel: (415) 782-7802 Fax:(415) 782-7854 ----- Forwarded by Susan J Mara/NA/Enron on 04/16/2001 08:47 AM ----- "Fuller, Don" <DFuller@caiso.com< Sent by: "Happ, Susan" <SHapp@caiso.com< 04/13/2001 04:21 PM To: ISO Market Participants <IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI CIPANTS@caiso.com< cc: Subject: CAISO Notice: Market Notice re: Credit Issues Market Notice re Credit Issues In response to the FERC order of April 6, 2001 re the issue of creditworthiness, the California Department of Water Resources (DWR) has authorized the ISO to make the following statement. To the extent (and only to the extent) that a purchase is not otherwise paid by any party or payable by another party meeting the credit standards set forth in the ISO Tariff (another "Qualified Party"), DWR will assume financial responsibility for all purchases by the ISO in its ancillary services and imbalance energy markets based on bids or other offers determined to be reasonable. Such determination of reasonableness will be made by DWR on a case by case basis and communicated to the ISO. All bids into the ancillary services and imbalance energy markets will be deemed to be contingent on the acceptance of financial responsibility by DWR, to the extent not paid or payable by another Qualified Party. Unless a supplier is otherwise notified, any bid accepted by the ISO will be deemed to have the financial support of another Qualified Party or DWR as specified in this notice. In addition to the foregoing, DWR will assume financial responsibility for all purchases resulting from the issuance by the ISO of emergency dispatch instructions, to the extent not paid or payable by another Qualified Party. Payment for such purchases shall be made according to the rate specified in the ISO Tariff for emergency dispatch instructions. The ISO and/or DWR reserve the right to rescind or modify the foregoing arrangements at any time and for any reason, including a successful rehearing or appeal from the April 6 order. As the FERC determined in its February 14 order that DWR is a creditworthy counterparty, the ISO believes that the foregoing arrangements meet the requirements of FERC's April 6 Order. Accordingly, the ISO expects that suppliers will honor their obligations under the ISO Tariff and related agreements to respond to ISO dispatch instructions. Don Fuller Director, Client Relations California ISO Phone: 916-608-7055 E-Mail: dfuller@caiso.com
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