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From:jeff.dasovich@enron.com
To:james.steffes@enron.com
Subject:Re: QUANTIFICATION OF BENEFITS OF OPEN ACCESS ON ELECTRIC
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Date:Wed, 11 Apr 2001 11:02:00 -0700 (PDT)

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You got it. I'll put my thinking cap on and start pondering.

Best,
Jeff



James D Steffes
04/11/2001 05:51 PM

To: hahnr@erols.com
cc: Richard Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Steven J
Kean/NA/Enron@Enron, Tom Briggs/NA/Enron@Enron, Rob Bradley/Corp/Enron@ENRON,
Margaret Carson/Corp/Enron@ENRON, tabors@tca-us.com, Jeff
Dasovich/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Christi L
Nicolay/HOU/ECT@ECT
Subject: QUANTIFICATION OF BENEFITS OF OPEN ACCESS ON ELECTRIC TRANSMISSION
NETWORK

In discussions with the Administration, it has become clear that there would
be great political value in being able to demonstrate (a) the economic value
of open access for the US and (b) the impact open access would have on the
current energy crisis.

Enron has developed historical analysis of the impact of deregulation on
natural gas. Margaret Carson is putting together some slides that show (1)
throughput improvements, (2) expansion in pipeline capacity, and (3) cost
reductions in the industry. While not exactly identical, there are some good
reasons to assume that the same would occur in the electricity industry.

It would be great if you could develop a general qualitative framework that
would outline why open access is preferable in the very short-term and work
on a larger quantitative framework over the medium-term.

To that end, Richard Tabors of TCA had earlier analyzed the economic loss
from AEP's abuse of its transmission network last year. He may have
additional insights into developing this concept.

Please call me with further questions at 713-853-7673.

Jim Steffes