What next?

Doug

I just sent this to Lloyd. Appreciate your confidence on the matter...as you
can see not everybody is onside with things. Unbalanced schedules go hand in
hand with LMP - logically we won't/can't get unbalanced schedules in ERCOT
without admitting we favor LMP for dispatch. We can and will minimize this
point during the discussion about balanced/unbalanced schedules but
eventually one leads to the other. Anyway the way in which LMP uses price
signals to clear congestion is in our commercial interests.

I really don't understand what is going on...how can this possibly be just a
case of not understanding how things work?

Regards, Ron
----- Forwarded by Ron McNamara/NA/Enron on 03/02/2001 07:50 AM -----

Ron McNamara
Sent by: Ron McNamara
03/02/2001 07:45 AM

To: Lloyd Will/HOU/ECT@ECT
cc:
Subject: What next?

Lloyd

Yesterday I was at a meeting of the Protocol Review Committee in ERCOT. At
lunch, Brad Jones from TXU approached me with some shock and surprise.
Apparently there is a fairly strong rumor going around that Enron has
retrenched back to the no "pool" zonal model, that I have been completely
marginalized, and that Robin Kittel resigned in response to this reversal. I
assured him that this was not the case. Then I receive a note from Bill
Hogan this morning (see below) which indicates what Rick Shapiro is saying
publically. I know that I am prone to overreacting, but I don't see how his
statements help our efforts in ERCOT or SPP (or Florida for that matter) all
they do is allow other market participants to think we (I?) don't know what
is going on. Why couldn't Rick have simply said that, as a general rule, for
the real time aspects of the market, we favor PJM? He could have indicated
that we think there are problems with the FTRs, ancillary services and the
scale/scope of the RTO but for real time dispatch we think PJM has some real
benefits. This would have been consistent with what we have been saying in
ERCOT and SPP - and what we will eventually have to say in the Alliance if we
are to be successful in changing that RTO. Lloyd I really don't know what
else I can do...

Regards, Ron

Ron,

I was on a panel yesterday with Rick Shapiro at an AEI Conference
in DC. In response to a question about Enron's position regarding PJM
type models, he said that there had been a filing in Texas which might have
created the impression Enron was now in support of a PJM
approach. However, he said, it was more complicated than that, and in any
event that Enron had "withdrawn the filing in Texas."

Has the filing been withdrawn? What happened here?

Bill