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Enron Mail |
Peter, just a follow-up to your email.
1. I would agree that OPG is mistaken. After the meeting, Chris and I and others started the process of explaining to Joel Sheinfied, a contract administrator, why deliveries in a pool situation were not just financial settlements but involved a physical commitment to deliver or cause to be delivered power. On this issue I think it would be helpful to present OPG w/ a product definition that works with the physical master. I know Chris is already working on this. From what it sounds like, the Ontario pool is not that different from NEPOOL. In UI, Chris worked on a product definition that you could incorporate into the physical master. 2. I also agree that in pools, a fm will only exist when the pool fails and there are no deliveries capable of being made (not a single MW flowing). This is what we did in UI. This is what we do in the California pool. This is what we attempt to do in NEPOOL. I think the EEI fm gets you to the same place (nobody could call fm if the pool were making deliveries) but agree that the language could be more direct. With the California product (CAISO energy) we expressly modify the EEI fm since there are so many other things we also have to fix. We likely in the future will also modify fm for the NEPOOL product but we are still trying to introduce so many other products in the US that this is a change for the near future. In general, fm is unique to the product and I believe will change with each product. When Chris and I were talking to OPG we told them that the fm we would be proposing for the Ontario product would be just as you stated: Fm is only possible if the pool fails. Just FYI, the god awful "Into"product in the US was created by Enron for the very reason you stated: we wanted to eliminate fm risk in a non-pool market - we did this by obligating the seller to continuously be required to change delivery points (and not be allowed to call a fm) within the defined control area if for any reason the prescheduled delivery point was unavailable.
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