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Enron Mail |
FYI
-- -------------------- Forwarded by Andrea Bertone/ENRON_DEVELOPMENT on=20 07/14/99 05:39 PM --------------------------- Luiz Maurer 07/02/99 08:56 AM To: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Lindolfo Ernesto Paixao/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT=20 Subject: Your participation in the Wholesale Market Implementation (MAE) Andrea Voc pode conversar hoje . tarde???Antecipando, segue um resumo do assunto. = Estamos vislumbrando sua ?participa??o principalmente no Grupo Legal??LM?--= -------------------- Forwarded by Luiz Maurer/ENRON_DEVELOPMENT on 07/02/99= ?09:03 AM ---------------------------???Luiz Maurer?06/24/99 04:51 PM?To: = Lindolfo Ernesto Paixao/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT?cc: ??Subject:= Your participation in the Wholesale Market Implementation (MAE)??REVISADO?= ---------------------- Forwarded by Luiz Maurer/ENRON_DEVELOPMENT on 06/24/= 99 ?05:24 PM ---------------------------???Luiz Maurer?06/24/99 02:46 PM?To= : Lindolfo Ernesto Paixao/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, ?sassad@elek= tro.com.br, joaoalb@elektro.com.br@ENRON_DEVELOPMENT?cc: ??Subject: Your p= articipation in the Wholesale Market Implementation (MAE)??MAE detailed imp= lementation is gaining momentum. Given the breadth and scope ?of the requir= ed efforts, several Task Forces have been created or are about ?to be creat= ed. ??The Task Forces are in general responsible for further detailing the= market ?rules and/or project management of specific implementation efforts= . Some of ?those task forces are joint ONS-MAE efforts.?? Regulatory Affair= s from both Enron and Elektro has participated in some of ?the Task Forces,= but many of them are not being covered. We think Enron ?should have a broa= der coverage in more ot the workstreams. However, ?Regulatory Affairs does = not have sufficient resources to participate more ?actively in all the requ= ired workstreams.??Broader participation is important for three reasons:??a= ) It is easier to influence and change directions at the early stages of th= e ?process?b) The Technical Commitee does not have a good coordination mech= anisms across ?all Task Forces. Unless one participates directly, we lose= touch with the ?subjects being discussed?c) It is an opportunity to get in= close contact with ONS - Enron does not ?have a seat at the ONS Board??The= refore, we are requesting your support to help Enron participate more ?acti= vely, by assigning specific professionals from your departent to the Task ?= Forces more related to your current or future responsibilities. We assume ?= that the average workload is about 1 day a week for each Task Force.??The P= roject Charters and responsibilities are described as follows. As an ?initi= al thought, we think the most relevant groups are: ??1) Trading - "b", "l"?= 2) Legal - "d", "m"?3) Integrated Projects - "a", "f", "n"?4) Elektro - "b"= , "f", "g"??Once we have a few suggested names, Regulatory Affairs will be = in charge of ?making sure the participants "hit the ground running" and for= coordinating ?the efforts across teams. ??a) Optimization and Pricing Mode= ls (led by Sheilly Contente - Coelba) - It is ?a joint task force (MAE-ONS)= , examining in detail all existing and future ?optimization models (most of= them "black boxes" produced by CEPEL). Those ?models will also be key to s= et the MAE spot price on a half-hourly basis. ?Jos, Lucio Reis is participa= ting. ??b) AMPs (Authorized Market Procedures) - (led by Alexandre Magno - = Cachoeira ?Dourada) - it is a Task Force working with PriceCoopers to detai= l all future ?procedures to be used by the MAE. Those procedures include Co= ntract Register, ?Data Submission, Energy Accounting, and many others. This= group is also ?examining the interim procedures to be adopted as soon as t= he MAE starts to ?develop the settlement and accounting functions (formerly= developed by GCOI). ?this Task Force is responsible for updating the GCOI = rules, taking into ?acount the breakdown of the supply contracts into T and= G components (Initial ?Contracts) and some other recommendations on settle= ment being made by ANEEL. ?Enron has had an ad hoc participation in some me= etings. This is an area ?particularly important to the Trading activities.?= ?c) Implementation - (led by Jean Thebault - Light) - This Task Force is ?= examining the overall work plan to implement the MAE, to make sure all the = ?pieces fit together. MAE implementation requires a good orchestration betw= een ?MAE Rules, ONS System Development, Metering and Metering Protocols, ?A= ccounting and Settlment Systems and many others. There is a general feeling= ?that many of those pieces are dangling. Dates and responsibilities are al= so ?very fragmented. No one from Enron is participating.??d) Legal (led by = Rosane Magalh?es - CERJ) - this task forces examines all ?legal and tax as= pects on the MAE implementation. It also supports other task ?forces, when = legal issues are involved. Currently, no one from Enron ?participating. We = think that having a lawyer from Enron or Elektro engaged in ?this Task Forc= e is essential.??e) Capacity Fee (led by Luiz Maurer - Enron) - this Task F= orce is further ?detailing the implementation of this subject, already appr= oved by COEX. Work ?involves the setting of a capacity fee for peaking plan= ts, as well as the ?establishment of criteria on who should pay, who and ho= w should receive. ?CEPEL and PSRI have been hired to support the quantitati= ve analysis. Fred ?Sampaio (Elektro) has also participated ??f) MAE Algebr= aic Rules (led by Sureck - Gerasul) - this Task Force has ?examined in deta= il the MAE algebraic rules proposed by Price Coopers and ?proposed some mod= ifications. This task force is now also involved in ?proposing how the Init= ial Contracts energy should be profiled on a ?half-hourly basis. Luiz Maure= r has participated in the initial phased, in ?charge of examining the propo= sed the rules for International ?Interconnections. Fred Sampaio is now the = Enron representative.??g) Allocation of Transmission Surplus - (led by Paul= o Born - Metropolitana) - ?this Task Force need to quantify the US$ volumes= involved in the surplus and ?propose ways to distribute it. Some general g= uidelines have already been ?proposed while the Initial Contracts are effec= tive. No guidelines exist ?afterwards. Initial analysis revealed that a lot= of money may be at stake, ?and generators are eager to use those funds to = limit their contract risk ?exposure. No one from Enron is participating.??h= ) MRE (Energy Reallocation Mechanism) - (led by Sylvia Celestino - Furnas) = - ?The purpose of this Task Force is to work on the details of the MRE. For= ?example, how the assured energy and the secondary energy will be profiled= ?over time and compared to the Initial Contracts. Subject is important for= ?hydro generators (or to assess the value of hydro generation). No one fro= m ?Enron is participating in this Task Force.??i) Demand Side Bidding - (l= ed by Ana Pimenta - Light) - the purpose of this ?Task Force is to evaluate= and expand the proposals made by Price Coopers ?regarding the participatio= n of large users in the MAE price setting process. ?The Task Force has als= o considered the possibility of creating additional ?market rules to foster= the demand side management. No one from Enron is ?participating.??j) Cost = of Capital - (led by Danilo Dias - BNDES) - this Task Force is ?reviewing t= he traditional 10% discount rate used by the electric sector, and ?developi= ng sensitivity analysis on the impact of higher rates on the ?optimization = decisions. Kleinworth Benson and CEPEL have been hired to ?support the effo= rt. Luiz Maurer is participating.??k) Cost of Rationing - (led by Wellingto= n - ANEEL) - this Task Force is ?reviewing the traditional cost of energy d= eficit used by electric sector, ?which is currently US$ 540/MWh. Studies ar= e being developed to define the ?energy deficit as a step function, whose c= ost of deficit will depend on the ?magnitude of the energy rationing. CEPEL= has been hired to support the ?quantitative analysis. The group will also = tangencially revisit the Value of ?Lost Load (VLL) which is a key parameter= to calculate the capacity fee. No ?one from Enron is currently in this tas= k force.??l) Financial Settlement - (led by Gilberto Pimenta - CEMIG) - thi= s Task Force ?has to make interim and definitive recommendation on how the = financial ?settlement should occur. The possibility to use financial instit= utions as ?clearing agents has been examined and in principle the idea look= s attractive. ?Special efforts are being assigned to the interim period - a= s of Oct 01, all ?the accounting and settlement has to be developed by ANEE= L. This Task Force ?is related to Task Forces "b" and "c". Therefore, it ma= y be relevant to ?Trading as well??m) Chain of Accountability - (led by Fre= d Sampaio - Elektro) - this joint ?Task Force, involving ABRADE, MAE, ONS, = ABRAGE and others has the ?responsibility to better define accountability i= ssues in case of failure. It ?has provided inputs to the Initial Contracts = and to the Transmission ?Contracts as well.??n) Optimization and Pricing Pr= ocedures (led by Miranda - Chesf) - this Task ?Force has the objective of a= nalyzing and double checking the assumptions used ?to run the optimization = and pricing models. Discount Rate, expansion plan, ?plant comissioning date= s and expected delays are being revised. This group ?has a strong interface= with Task Force "a" ???In additon to those Task Forces (I hope I did not m= iss any), there are also ?some ad-hoc efforts, such as MAE Budget, a Task F= orce to hire consultants to ?develop MAE processes and systems, and a few o= thers. Those are important ones ?as well, but they have basically being dis= cussed at the Technical Commiitte ?level - (Where both Enron and Elektro ha= ve participated)????LM???????
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