Enron Mail

From:charles.yeung@enron.com
To:maureen'.'mcvicker@enron.com, steven.kean@enron.com
Subject:RE: Invitation to participate in CAEM's Grid Enhancement Evaluation
Cc:
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Date:Wed, 22 Aug 2001 04:43:05 -0700 (PDT)

Cc: james.steffes@enron.com, steve.walton@enron.com, rob.bradley@enron.com
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Steve
=20
I spoke with Phil Marsten on the phone to get more information as to the pu=
rpose of CAEM and its supporters.
As you know, Enron's attempt at implementation of these technologies a coup=
le of years ago (Randy Maffett's group) hit upon many obstacles, mostly res=
istance or reluctance by utilities to allow or sponsor such projects.
=20
There is some value to the CAEM approach - that is to help the vendors/prop=
rietors of the technology by educating regulators and policy makers to the =
value of these solutions.
=20
Presently, Phil is talking with some transmission companies - but none of t=
he major problem area names were mentioned.
=20
Phase I - evaluating technology, get a common understanding of these system=
s, technically THEN - analysis into the regulatory impacts
- includes hiring experts to evaluate the technologies, cost, commercialabi=
lity, etc.
=20
A CERTS (DOE) effort was technology focused, not focused on the policy side=
. I asked Phil if he was aware of any similar efforts at EPRI, EEI or IEEE =
to see if there is any duplication. He did not know. I will ask someone t=
o research whether these organizations are trying the same. If they are, t=
hen there is no need to reinvent the wheel.
=20
Phil mentioned that Rob Bradley has information on funding this effort that=
may allow Enron participation without financial contribution.
=20
I left it open to invite Phil to meet with Enron folks if we are interested=
in joining. =20
=20
In my opinion, RTOs will ultimately have to be on board from both a plannin=
g and operational perspective to implement these solutions. Policy makers =
are certainly important - but RTO endorsement can be just as effective of a=
catalyst for implementing these solutions. Regulators tend to defer to th=
e technical experts. So, would CAEM be effective or needed on the RTO front=
? Also in Steve Walton's opinion, much more ATC and TTC is left off the ta=
ble than what these technologies may be able to offer, so you can get more =
bang for the buck by pushing for better NERC rules, curbing regional counci=
l authority, getting more FERC action, etc. CAEM technologies could become=
a crutch for a bad-boy utility to not doing what is right in the first pla=
ce. We would not want a regulator to lose sight of the real problems at ha=
nd today.=20
=20
=20

-----Original Message-----
From: McVicker, Maureen=20
Sent: Monday, August 20, 2001 3:51 PM
To: Yeung, Charles
Subject: FW: Invitation to participate in CAEM's Grid Enhancement Evaluatio=
n Project
Importance: High


Charles:
=20
Steve Kean received this email on Aug. 10. I forwarded the information (vi=
a hard copy) to Jim Steffes last week at Steve's request. I understand tha=
t Jim has forwarded it to you.
=20
This man, Phil Marston is calling Steve to follow up. Please call Phil at =
703-548-0154 and let him know if you are interested in meeting with him. =
=20
=20
Please let me know what you decide, so I can mark my records on how we resp=
onded.
=20
Thanks.
=20
-----Original Message-----
From: Marston, Philip [mailto:pmarston@marstonlaw.com]
Sent: Friday, August 10, 2001 8:37 AM
To: McVicker, Maureen
Subject: Fw: Invitation to participate in CAEM's Grid Enhancement Evaluatio=
n Project


=20
----- Original Message -----=20
From: Marston, Philip <mailto:pmarston@marstonlaw.com<=20
To: skean@enron.com <mailto:skean@enron.com<=20
Cc: rbradley@enron.com <mailto:rbradley@enron.com<=20
Sent: Wednesday, July 25, 2001 5:15 PM
Subject: Invitation to participate in CAEM's Grid Enhancement Evaluation Pr=
oject


Steve Kean
Enron Corp.=20
Delivered via email to: skean@enron.com <mailto:skean@enron.com<=20
=20
Dear Steve:=20
=20
I'm wearing a somewhat different hat today, that of "Adjunct Scholar" to Ke=
n Malloy's Center for the Advancement of Energy Markets (CAEM). In that ca=
pacity, I am directing the Center's recently announced Grid Enhancement Eva=
luation Project. The full proposal is attached below as a PDF file. I've a=
lso included for your records an updated resume on my qualifications to dir=
ect the Project. =20
=20
You know better than any in the industry how the restructuring of the Natio=
n's electricity markets and regulatory infrastructure is continuing in the =
face of greater uncertainty than at any time since the oil price shocks of =
the 1970s. And as one of the major participants in the business as well as=
the policy debate over the future shape of the generation and transmission=
industries, Enron is also well aware that a key component of any regulator=
y outcome will be efforts to enhance the performance of the transmission gr=
id. The purpose of CAEM's Grid Enhancement Evaluation Project is therefor=
e to provide an independent assessment of the new grid debottlenecking and =
flow control and management technologies to provide the public - and policy=
makers - with a better understanding of how these new systems operate, what=
they will cost, how they may be deployed, and, in particular, how these po=
tentially disruptive technologies will "synch" with the currently evolving =
regulatory framework. This effort should be especially timely in light of =
the concern over the extent to which the current changes in the regulatory =
framework are really being created to address problems resulting from the c=
razy-quilt legacy transmission system, and may tend to institutionalize som=
e aspects of those legacy systems. =20
=20
The Center is proposing to bring together a blue-ribbon panel to evaluate o=
pportunities for enhancing the nation's electric transmission grid through =
the use of various new technologies, including in particular solid-state po=
wer electronics-based solutions ("FACTS" technologies), high voltage direct=
current ("HVDC") interconnectors across "seams" in the regional grids, an=
d superconducting-based technologies. The Grid Enhancement Evaluation Proj=
ect is the only effort of its kind to bring together a diverse group of sen=
ior executives to undertake the following: 1) Agree upon the appropriate m=
ethodology; 2) Using the methodology, authorize a panel of experts to indep=
endently evaluate the technologies on their state of development and curren=
t commercial viability; 3) Make policy recommendations on what changes may =
be required to integrate these new technologies into the existing regulator=
y framework and eliminate identified barriers to commercial deployment; and=
4) Conduct an educational campaign to raise public awareness and acceptanc=
e of these technologies. =20

The project will begin in the Fall of 2001 and a Final Report will be issue=
d January 2002. The project is expected to have a significant impact on de=
cisions made by regulators, financial analysts, utility executives, the med=
ia and potential customers. Consistent with the Center's usual practice, =
the Project will include public are as well as private sector participants,=
and will culminate in a public report.=20


We would welcome your participation Steve, or the appropriate Enron designa=
te to this effort. Perhaps I can call you in a few days, after you've had =
a chance to review the attached Project description (which is about 12 page=
s). As I'm currently out of the country, the best way to reach me is via e=
mail at pmarston@marstonlaw.com <mailto:pmarston@marstonlaw.com< and I will=
call you promptly at your convenience. =20
=20
On behalf of the Center, I thank you for considering participating in this =
timely Project.=20
=20
Sincerely,=20
Philip M. Marston, Esq.
Adjunct Scholar to the Center for the Advancement of Energy Markets
Tel: 703-548-0154
Fax: 419-715-0905
=20
PS. I've taken the liberty of cc'ing Rob Bradley as well, given his intere=
st in so many of the policy-oriented issues. And Rob, I'd appreciate your =
comments on the attached paper in any event! =20