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Enron Mail |
Rick,
Barbara and Kerry are traveling to Missouri tommorrow to negotiate with Ameren. This bill which will be an industrial buy-through only (due to complications with Constitutional Amendments in Missouri involving a requirement for a referendum for any tax law changes). The bill applies to industrials greater than 1 MW in Ameren and 2 MW everywhere else. In speaking to EES, they want us to try and get the threshold reduced to 500kw to 1mw. ENA wants load following in order to sell blocks of power to large industrials. In addition, there are a host of other issues, including, insufficient regulatory review for shifting generation into a genco, no code of conduct for that genco and Illinois-styled stranded cost recovery. Kerry and Barbara have a tough assignment to get anything here. We thought it would be best to see how these negotiations go before formulating what kind of message we would like Ken Lay to deliver if he is willing. To make matters worse, the industrial group has already caved on the bill. Kerry and Barbara, I believe are also meeting with the consumer advocates office and the Commission staff who have not signed off on the bill. We should know more in the next day or two. Nothing will happen at the legislature until next week. Janine Richard Shapiro@EES 03/17/2001 03:11 PM To: Laurie Knight/NA/Enron cc: Janine Migden/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James D Steffes/NA/Enron@Enron Subject: Re: Missouri Legislation and Request for Assistance from Ken Lay Janine - what is status of this? Laurie Knight 03/15/2001 10:56 AM To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron cc: Janine Migden/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James D Steffes/NA/Enron@Enron Subject: Missouri Legislation and Request for Assistance from Ken Lay FROM: BARBARA HUETER KERRY STROUP The Missouri Senate Commerce and Environment Committee is expected to pass Sub.SB455 when it returns from spring break during the week of March 26th or the following week. Senate President Pro Tem Peter Kinder introduced the bill for AmerenUE. AmerenUE is controlling the process. We must go through Ameren for changes - and they are not very willing to concede. We would like to arrange for Ken Lay to call Senator Kinder to express Enron's concerns about the bill (market structure, lack of benefits for customers). Our local lobbyist, Roy Cagle, could let Senator Kinder know that Ken Lay would like to speak with him and arrange an appropriate time for the call to take place. It would be most helpful if the call could take place by March 26th. Senator Kinder graduated from the U of Missouri-Columbia in the 1970's. He was a member of the same fraternity as Ken Lay. Peter also met Ken at the Republican Convention last summer -- and seemed very excited about it. Also, being a Republican, Peter seems very impressed by Ken Lay's relationship with the President. We think this is a good opportunity for Enron to gain some leverage over Ameren via Senator Kinder. Kerry and I are analyzing the various drafts and suggestions for changes to the bill. We are working with numerous other stakeholders -- so the actual contents of the deal/bill are in constant flux. We would prepare a briefing for Mr. Lay but would wish to do so closer to the time of the call so that Mr. Lay will have the most up-to-date information. In a nutshell -- the bill allows a utility to spin off generation assets to a genco at historic net book value. The utility would then sign a PPA with the genco to provide for the full requirements of its captive customers as well as eligible customers who have not chosen an alternative supplier. Customers over 1MW in Ameren's service territory and those over 2MW in other service territories (munis and coops excluded) would be able to arrange buy-through type arrangements with registered suppliers. The bill does not contain adequate transmission access language, a code of conduct, appropriate unbundling language nor does it address a host of other market structure issues that are key to developing robust competition.
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