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It was derated by 3200 MW, raising Mid-Columbia prices by $50-75/MWh. It's
not effecting Cal ISO's return of power because that power is flowing on different transmission, from the Nevada Oregon Border north, not from the California Oregon border North. ---------------------- Forwarded by Mary Hain/HOU/ECT on 01/26/2001 10:56 AM --------------------------- Enron Capital & Trade Resources Corp. From: "Gannett, Craig" <CraigGannett@DWT.COM< 01/26/2001 10:53 AM To: "'Mary.Hain@enron.com'" <Mary.Hain@enron.com< cc: James.D.Steffes@enron.com, csandhe@enron.com, Sean.Crandall@enron.com, Tim.Belden@enron.com Subject: RE: COB Exports denied I like the idea alot, and I'll call you later this morning. In the meantime, do we have any idea how much power is being kept in CA by the transmission derating? How much is it affecting the market price in the NW? Is it also affecting CA's ability to return power to BPA pursuant to the one-for-two exchange agreement? I know these are probably tough questions to answer, but the staff of NW members will want our best estimate. Craig -----Original Message----- From: Mary.Hain@enron.com [mailto:Mary.Hain@enron.com] Sent: Friday, January 26, 2001 10:27 AM To: Gannett, Craig Cc: James.D.Steffes@enron.com; csandhe@enron.com; Sean.Crandall@enron.com; Tim.Belden@enron.com Subject: COB Exports denied From an operational perspective, during a Stage 3 Emergencies, the ISO has three options available to keep the lights on. It can (1) buy more power (under its DOE granted Section 202© authority), (2) cut scheduled power transactions, or (3) derate transmission capacity used to export power from its system. The Cal ISO has recently been derating to zero transmission capacity to the Northwest (option 3). Because transmission users can't get capacity to sell their power outside California, the effect is that the ISO gets cheaper power over customers in the NW. I was thinking of a political approach to solving this problem. I was wondering if you could work with your contacts to mobilize NW Senators (?) to write a letter to the California ISO and the Governor; you might even get Steve Wright to sign on given that this situation must make it more difficult for him to balance his budget. The central theme of the letter would point out what a hue and cry there would be if BPA engaged in such actions and that California is simply trying to get cheaper power than the rest of the region. It could also point out that the Cal ISO already has the mechanism of the Secretary of Energy's Section 202© orders to get the power it needs for an emergency and that this order is fairer because it allows market participants to have a just and reasonable rate determined (albeit after the fact) for the power. I wouldn't bring up the ISO's authority to cut scheduled power transactions. I don't think we want to encourage that. What do you think? Call me.
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