RE: ICC Meeting

Janine --

Good job.

On the hourly market price index, until we have LMP dispatch, the best we can do is a public index. Let's not ask for too much. Just something we can hedge against. Can you talk with the EWS folks for the best index option???

Also, if the default is a monthly public index, why do the customer's need any "parking"? They can move directly to the new option.

What is your definition of "functioning wholesale market"? Are we stating that unless an RTO is running, we can't get rid of the PPO? Maybe just resolve the Imbalance issue. More specifics would be helpful.

Thanks,

Jim

-----Original Message-----
From: Migden, Janine
Sent: Monday, October 29, 2001 3:42 PM
To: Ader, Jeff; Allegretti, Daniel; Baughman, Edward D.; Bernstein, Mark; Boston, Roy; Burrows, John; Clynes, Terri; Courtney, Mark; Decker, Charles; Detina, Ken; Frazier, J Ryan; Gahn, Scott; Hueter, Barbara A.; Kingerski, Harry; Letke, Eric; Lewis, James; Mastrangelo, Lino; Merola, Jeff; Migden, Janine; Nicolay, Christi L.; Persson, Roger; Roan, Michael; Sewell, Doug; Shapiro, Richard; Sharfman, Guy; Sharp, Greg; Snyder, Brad; Steffes, James D.; Stoness, Scott; Landwehr, Susan M.; Ulrich, Marc; Whalan, Jubran; Wood, James; Young, Ress
Subject: ICC Meeting

The ICC Energy Committee held a meeting to discuss ComEd's proposal to drop the PPO. We argued that this should not be allowed until the wholesale market/delivery issues are dealt with because otherwise customers will have no choice but to return to ComEd at the higher bundled rate. The good news is that a rather lengthy discussion on this issue ensued as a result. The industrial customer group and Mid American Energy supported our views; however AES New Energy said that this was not a problem for them.

We also commented that once the PPO goes away it should not be resurrected due to the uncertainty it would create in the market. ComEd responded that under the statute they can not offer to waive the PPO but could negotiate an arrangement on the CTC if approached by the customer. This would mean that we could negotiate on behalf of all our customers regarding the CTC.

We have the opportunity to file comments to the Commissioners before the actual filing. A draft is attached.

<< File: Commissioner Terry Harvill.doc <<

If you have any comments, please respond by the end of the week.