Enron Mail

From:christi.nicolay@enron.com
To:richard.ingersoll@enron.com
Subject:Re: Update on PFTF IMPORTANT
Cc:bill.rust@enron.com, james.steffes@enron.com, richard.shapiro@enron.com,kevin.presto@enron.com, joe.hartsoe@enron.com, charles.yeung@enron.com, sarah.novosel@enron.com, lloyd.will@enron.com
Bcc:bill.rust@enron.com, james.steffes@enron.com, richard.shapiro@enron.com,kevin.presto@enron.com, joe.hartsoe@enron.com, charles.yeung@enron.com, sarah.novosel@enron.com, lloyd.will@enron.com
Date:Mon, 30 Apr 2001 21:57:00 -0700 (PDT)

Dick -- I totally agree with you that allowing the TPs to work in some
"credit" for adjustments that can only be made to their generation (and that
by definition will not be transparent to anyone) is bad. Can you send me a
paper, email, etc. where they have said this and we can pursue it (whether by
alerting FERC, etc.) Thanks.


From: Richard Ingersoll on 04/30/2001 07:45 PM MST
To: Bill Rust/ENRON@enronXgate@ENRON, James D Steffes/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Kevin M Presto/HOU/ECT@ECT, Joe
Hartsoe/Corp/Enron@ENRON
cc: Charles Yeung/HOU/ECT@ECT, Christi L Nicolay/HOU/ECT@ECT

Subject: Re: Update on PFTF IMPORTANT

Bill, Charles, Keep in mind that the system physically operates
automatically with the actual flow effected by the net schedules thus we
should come up with a way to net schedules for the IDC and TLR process. I
have one major concern in the netting dialog and in the current TLR
discussions. The providers are proposing that they be given credit for not
only netting of unit generation which is probably OK but also they want
credit in the TLR process for units whose generation has been adjusted prior
to the TLR being called. They say they sometimes adjust generation before
calling a TLR to try and prevent the need for a TLR. Sounds good and it is
good that some of them try to do this but to give them credit for adjusting
generation that was adjusted prior to a TLR being called after the TLR is
then implemented will be a source of abuse that will be dificult to police.
It is the Native Load issue again, though they never bring Native Load into
the discussions. I am looking for a solution that will encourage them to
adjust generation prior to calling a TLR and would not then be abused in the
TLR process. Anyone have any IDEAS let me know.



Bill Rust/ENRON@enronXgate
04/30/2001 08:50 AM

To: Charles Yeung/HOU/ECT@ECT, Richard Ingersoll/HOU/ECT@ECT
cc: Christi L Nicolay/HOU/ECT@ECT
Subject: Update on PFTF

Dick/Charles,

Here's a very brief update of the PFTF conference call held on Friday 27 APR.

Tom Mallinger opened the call by briefly going over our seven alternatives
for the inclusion of netted effects in the TLR 5 relief assignment. We talked
about the presentation Tom gave before the SCS. Tom said that the SCS shot
down any alternative that did not give credit to the PSE. That left our most
complicated alternative as the only solution. I asked if the complexity was
worth the benefit.

At this point Tom said (emphatically) that both Dick and Lydia Volmer
insisted that the PFTF come up with a solution other than the existing
solution and that the new solution be one which gives PSEs incentive to
create counter flows.

Our call settled on the PFTF selecting our seventh alternative, which is also
the most complex. This alternative will give the PSE credit for counter flows
(by PSE) and will also give control areas credit for counter flows (by CA).
Details are to be worked out.

COMMENTS:

The existing method looked at positive contributions to the flow gate and
ignores negative contributions (netting effects).

Dick - what is your position on sticking with the existing procedure vs.
creating a new procedure which allows netting? Did Tom characterize your and
Lydia's opinion correctly above? My concern is that the CAs will always have
netted affects available and thus will always benefit from the new procedure
(at the expense of point-to-point). We will have to predict when and where
the TLR 5 will occur and then create a transaction, before the fact, to
benefit from the new netting procedure. This procedure will not be useful
after the fact.

My real question - Is the SCS insisting on a netting procedure, or does Tom
just not want to go back empty handed? In each PFTF meeting he is adamant
that we reach consensus on a new solution that includes netting. If this is
really what the SCS wants, the we'll push for the complex solution. I just
think this is another NERC band-aid approach that is unnecessarily complex
and may not benefit Enron.

Let me know your thoughts.

Bill Rust