Enron Mail

From:herndon@enron.com
To:mallik.avs@enron.com
Subject:Consumption Premium
Cc:don.black@enron.com, kevin.presto@enron.com, john.lavorato@enron.com,c..aucoin@enron.com, ress.young@enron.com, narsimha.misra@enron.com, sean.holmes@enron.com
Bcc:don.black@enron.com, kevin.presto@enron.com, john.lavorato@enron.com,c..aucoin@enron.com, ress.young@enron.com, narsimha.misra@enron.com, sean.holmes@enron.com
Date:Mon, 21 May 2001 20:31:15 -0700 (PDT)

Mallik -

How are we accounting for the consumption risks associated with the fact that we have in most cases no real time meter reading capabilities necessary to accurately forecast and serve load physically.

As I see it, our consumption premiums appear to be very simplistic calculations (100 basis point type calcs on generic rate class profiles) and do not take into acount the aforementioned metering shortfalls. This issue is exacerbated when trying to reconcile/prove DSM performance.

I would like to think about and discuss in more detail to ensure appropriate risk capture.

Rogers