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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: US Publishing <thg7667@restructuringtoday.com<@ENRON <IMCEANOTES-US+20Publishing+20+3Cthg7667+40restructuringtoday+2Ecom+3E+40ENRON@ENRON.com< X-To: RT Reader <thg7667@restructuringtoday.com< X-cc: X-bcc: X-Folder: \JSKILLIN (Non-Privileged)\Deleted Items X-Origin: Skilling-J X-FileName: JSKILLIN (Non-Privileged).pst Are you well informed? Restructuring Today readers got the story below last week. They've also read interviews with Salt River Project's Dick Silverman, Dennis Bakke from AES Corp, Williams' Keith Bailey and Erle Nye of TXU, to name just a few, in the last month. Interviews coming up include Chuck Watson from Dynegy, Sempra's Steven Baum and Alan Raymond of Shell Energy. Restructuring Today tells what the CEOs making the big decisions are thinking and planning on. FERC RTO bombshell Enron's Kean, Skilling see big impact on retail markets --- Wholesale grid to be 90% open in 2-3 years Enron Chief of Staff Steve Kean "has been actively involved in getting this stuff done," said CEO Jeff Skilling in introducing Kean to a conference call last week. Today's wholesale power market, Enron finds is only about 20-25% open. "This is going to push for something close to 100%," Kean forecast but he wants to see how FERC deals with public power first. "It's going to be a significant, a significant expansion of the industrial market," he predicted, "to 80 or 90% levels within a relatively short period of time." As Kean reads FERC, "they appear to be getting rid of pancaking of rates ... We're going to have 100 potential supply sources we're going to be able to put in touch with thousands of markets. "It's even more significant than simply getting open access tariffs across the individual utility systems. "We're going to be able to move power from where it is to where it's needed." Kean thinks the RTOs will facilitate the opening of retail markets. "As we get more workably competitive wholesale markets it's going to increase our ability to deliver away from traditional pooling points and serve retail energy markets as well. "A huge step forward and a dramatic increase, a multiple increase in the investible market," he told analysts. Skilling agreed with Kean's numbers and went a step farther predicting the 20% open shift to 90% open will happen in the next two or three years. "We're serving 30,000 sites," Skilling noted. "We can physically get power to only about 20% of those locations given the constrictions in the grid and the difficulty of moving across the grid. "This will make it much, much easier to get power much further out from the market centers where we've been operating today," Skilling forecast. Let Restructuring Today keep you informed. Restructuring Today provides you with news and analysis. RT is written by veteran energy news analysts. They don't just write what the news is, like most energy-communications newsletters, they tell you what the news means. Subscribe today and start benefiting from Restructuring Today's special, unique focus on the converging energy and communications industries, especially the opening of competitive markets. Simply fax the attached order form to 202-298-8210 and you won't miss another vital issue. Thank you, Season Hawksley Marketing Manager US Publishing 800-486-820 202-298-8201 PS -- Please do not hit reply. To subscribe, cancel, change your email address or ask questions please contact customercare@restructuringtoday.com. - orderform.pdf
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