RE: MG Load Curtailment Option

Thanks for the info. We need to push for other good load programs in PJM a=
nd New England.

Jim

-----Original Message-----
From: =09Fromer, Howard =20
Sent:=09Thursday, September 20, 2001 8:04 AM
To:=09Steffes, James D.
Cc:=09Brown, Jeff
Subject:=09RE: MG Load Curtailment Option

Jim: I have participated in a number of calls with Jeff and his team over t=
he past few weeks regarding this deal, goving over the details of how NY's =
demand response programs work, reviewing draft contracts, and putting him i=
n touch with appropriate ISO staff when even more detailed followup was nee=
ded. I see little likelihood of NY's demand response programs being elimina=
ted over the next few years given the increasingly tight supply situation t=
he state faces and the long lead time for permitting and bulding new genera=
tion, and the great success these programs achieved this past summer. (Most=
folks credit the 600 MW produced by NY's day-ahead and emergency demand re=
sponse programs with keeping the lights on in the northeast during the earl=
y August heat wave.) Only the day-ahead incentive program has a risk of not=
being continued beyond October 2003, it's current expiration date. However=
, even there, there is likely to be pressure to extend it for an additional=
year or two. With respect to potential RTO impacts, in our discussions wit=
h PJM, they have stated that at a minimum they would allow NY to continue i=
ts demand response programs in the new Northeast market on day 1, even if t=
hey differed from the rest of the region.Further, PJM would even consider m=
aking the NY programs applicable throughout the region on day 1 if that was=
what the market participants in the region wanted to do.=20

-----Original Message-----
From: =09Steffes, James D. =20
Sent:=09Wednesday, September 19, 2001 9:25 AM
To:=09Fromer, Howard
Subject:=09MG Load Curtailment Option

Howard -

Have you and Jeff Brown talked about the MG deal? I want to make sure that=
you understand fully and appreciate any issues / concerns.

Thanks.