Enron Mail

From:steve.walton@enron.com
To:richard.shapiro@enron.com
Subject:Re: Reliant Negawatt proposal
Cc:james.steffes@enron.com, jeff.dasovich@enron.com, paul.kaufman@enron.com,susan.mara@enron.com, tom.briggs@enron.com
Bcc:james.steffes@enron.com, jeff.dasovich@enron.com, paul.kaufman@enron.com,susan.mara@enron.com, tom.briggs@enron.com
Date:Mon, 16 Apr 2001 14:56:00 -0700 (PDT)

I may be too late, because I took a couple of days of vacation, but I will
still respond. I think with adjustments and broadening, there should be a
proposal that Enron and Reliant could both support.

1. Under Reliant's plan, the customer is selling a call option for
interruption, rather than a block of energy. This means the customer is not
planning ahead to shift production, but waiting for the call to be
exercised. This doesn't do much for forward planning and it makes it
difficult for an industry to plan ahead. Some customers who cannot live with
an interruption on call, can nevertheless move production on a planned basis
to another day, another factory, or even give up production for a period.
The best outcome is for the customer to be able to bid for either sale of a
preplanned block of energy or sale an interruptible call option. This is the
broadening of the proposal I suggest.

2. WSCC is the WRONG the absolutely WRONG place for the market to be
organized. They have no experience or infrastructure for handling market
activity. WSCC runs in terror whenever an economic issue is raised. The
utilities have way to much voting power. The list goes on. Under WSCC the
proposal will be talked to death. You need someone with infrastructure to
run a market. Why limit this to one market or marketer. The key is getting
the state tariff riders in place, then the utilities can place the orders
with whatever vendor offers the best price. If a neutral site for posting is
needed, use APX or maybe even the WSPP bulletin board. This centralization
in a single market is not helpful.

Steve



Richard Shapiro@ENRON
04/12/2001 01:30 PM

To: James D Steffes/NA/Enron@Enron, Steve Walton/HOU/ECT@ECT, Paul
Kaufman/PDX/ECT@ECT, Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron
cc: Tom Briggs/NA/Enron@Enron
Subject: Reliant Negawatt proposal

Comments?
---------------------- Forwarded by Richard Shapiro/NA/Enron on 04/12/2001
01:29 PM ---------------------------
From: Tom Briggs on 04/12/2001 11:46 AM
To: Richard Shapiro/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT
cc:

Subject: Reliant Negawatt proposal

I have attached a proposal prepared by Reliant. Reliant hopes that it is
something that Enron can support (with any modifications). Steve Walton has
concerns about the role of the WSCC. ELCON supports the concept with some
other modifications. I recognise that there are issues. Nonetheless, to
respond to Barton's short term emergency measures, it would be usefule to
know whther a negawatt program across the WSCC can be im[plemented by June.