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Enron Mail |
cheers.
-----Original Message----- From:=09Mainzer, Elliot Sent:=09Wed 8/29/2001 5:13 PM To:=09Steffes, James D.; Bolton, Stacey; Thome, Jennifer; Dasovich, Jeff Cc:=09Bryson, Jesse; Schoen, Mary Subject:=09RE: SBX2 78 - Update We are in the process of calculating EWS's potential short position on gree= n power that could result from an RPS in California. We should have definit= ive numbers by mid-day tomorrow. We are working with Steve Swain and Jeff R= ichter to assess the exposure, running our commodity short against $1.50, $= 3.00 and $7.00 green curves. Numbers will eventually be adjusted for contra= cts with pass-through clauses. We can discuss the results on our conference= call tomorrow. EM -----Original Message----- From: Steffes, James D.=20 Sent: Wednesday, August 29, 2001 2:44 PM To: Mainzer, Elliot; Bolton, Stacey; Thome, Jennifer; Dasovich, Jeff Cc: Bryson, Jesse; Schoen, Mary Subject: RE: SBX2 78 - Update -----Original Message----- From:=09Mainzer, Elliot Sent:=09Wed 8/29/2001 4:02 PM To:=09Bolton, Stacey; Thome, Jennifer; Dasovich, Jeff Cc:=09Bryson, Jesse; Steffes, James D.; Schoen, Mary Subject:=09RE: SBX2 78 - Update I want to make sure that Jeff Richter from the power desk knows about this = potential increased cost. Jim -----Original Message----- From:=09Mainzer, Elliot Sent:=09Wed 8/29/2001 4:02 PM To:=09Bolton, Stacey; Thome, Jennifer; Dasovich, Jeff Cc:=09Bryson, Jesse; Steffes, James D.; Schoen, Mary Subject:=09RE: SBX2 78 - Update How about tomorrow afternoon at 4:00 Houston time? =09 -----Original Message----- =09From: =09Bolton, Stacey =20 =09Sent:=09Wednesday, August 29, 2001 1:55 PM =09To:=09Mainzer, Elliot; Thome, Jennifer; Dasovich, Jeff =09Cc:=09Bryson, Jesse; Steffes, James D.; Schoen, Mary =09Subject:=09RE: SBX2 78 - Update =09I think that's a good idea -- particularly w/ respect to the likelihood = of passage. If we could arrange for tomorrow afternoon after 2:00 p.m. CDT= that would be great. I've got a 4:00 and a 5:00 this afternoon. =09Thanks, =09Stacey Bolton =09Environmental Strategies =09Enron Corp =09713-853-9916 direct=20 =09713-303-2632 cell=20 =09sbolton@enron.com <mailto:sbolton@enron.com< =09=20 =09=09 -----Original Message----- =09=09From: =09Mainzer, Elliot =20 =09=09Sent:=09Wednesday, August 29, 2001 3:23 PM =09=09To:=09Thome, Jennifer; Dasovich, Jeff =09=09Cc:=09Bryson, Jesse; Steffes, James D.; Bolton, Stacey; Schoen, Mary =09=09Subject:=09RE: SBX2 78 - Update =09=09Jenny -- I would appreciate you setting up a call with relevant folks= to discuss this. Later this afternoon or tomorrow afternoon work well for = me. =09=09Thx, =09=09Elliot =09=09=09 -----Original Message----- =09=09=09From: =09Thome, Jennifer =20 =09=09=09Sent:=09Wednesday, August 29, 2001 1:10 PM =09=09=09To:=09Dasovich, Jeff =09=09=09Cc:=09Bryson, Jesse; Mainzer, Elliot; Steffes, James D.; Bolton, S= tacey; Schoen, Mary =09=09=09Subject:=09FW: SBX2 78 - Update =09=09=09Jeff: =09=09=09As you may know, at Jim's request, Stacey Bolton reviewed the rene= wables language in SBX2 79 and SB 532 and identified some important issues.= =20 =09=09=09In a memo she sent out yesterday, she detailed her concerns about = these bills (copied below, for your reference). =20 =09=09=09How do you suggest we proceed? Shall I arrange a brief call for u= s with Stacey, Elliot, Mary and Jesse to discuss where we stand and strateg= y going forward? =09=09=09Jennifer =20 =09=09=09*************** =09=09=09Overall Concerns: =20 =09=09=09=091.=09The requirement for retailers to enter into a direct bilat= eral for the power from renewable energy and schedule it into the CA grid p= resents limitations and could drive up costs. =09=09=09=092.=09It?s unclear if the REC is truly separate instrument from = the underlying commodity. The above requirement indicates that it is not. = This would negatively impact, and even negate the main reasons to have a R= EC trading program - to provide flexibility and act as verification for the= RPS. =09=09=09=093.=09The biomass definition is too limiting. Would be difficul= t to detail this amount of information on a REC. Need to have language tha= t distinguishes whether the REC is RPS eligible or not. =09=09=09=094.=09Utilities are given preferential treatment in proposed lan= guage in that utilities can recover costs through rate base and the Departm= ent of Water Resources (SB 532 only) is instructed to purchase renewables o= n their behalf if it is cost prohibitive for the utilities. =09=09=09=095.=09While the cost cap is positive from a retail perspective, = it might be out of the market from a wholesale perspective to cover the ren= ewable premiums for new sources. =09=09=09 -----Original Message----- =09=09=09From: =09Bolton, Stacey =20 =09=09=09Sent:=09Wednesday, August 29, 2001 2:39 PM =09=09=09To:=09Thome, Jennifer =09=09=09Cc:=09Mainzer, Elliot; Bryson, Jesse =09=09=09Subject:=09RE: SBX2 78 - Update =09=09=09The concerns that I listed at the end of the memo are the ones tha= t I believe need to be addressed and clarified if it appears one of these b= ills are moving forward at a rapid pace. Thanks! =09=09=09Stacey Bolton =09=09=09Environmental Strategies =09=09=09Enron Corp =09=09=09713-853-9916 direct=20 =09=09=09713-303-2632 cell=20 =09=09=09sbolton@enron.com <mailto:sbolton@enron.com< =09=09=09=20 =09=09=09=09 -----Original Message----- =09=09=09=09From: =09Thome, Jennifer =20 =09=09=09=09Sent:=09Wednesday, August 29, 2001 2:22 PM =09=09=09=09To:=09Bolton, Stacey =09=09=09=09Cc:=09Mainzer, Elliot; Bryson, Jesse =09=09=09=09Subject:=09RE: SBX2 78 - Update =09=09=09=09Stacey: =09=09=09=09As Jim has asked me to follow more closely CA legislation, I su= ggest you let both Jeff and me know what your issues are, etc. and we can d= etermine the best way to proceed. =09=09=09=09Thanks,=20 =09=09=09=09Jennifer =09=09=09=09=09 -----Original Message----- =09=09=09=09=09From: =09Bolton, Stacey =20 =09=09=09=09=09Sent:=09Wednesday, August 29, 2001 2:04 PM =09=09=09=09=09To:=09Thome, Jennifer =09=09=09=09=09Cc:=09Mainzer, Elliot; Bryson, Jesse =09=09=09=09=09Subject:=09RE: SBX2 78 - Update =09=09=09=09=09Thanks. The changes in combination are okay, though it woul= d be better to get the date as Sept '96 for eligibility and interconnected = to CA grid. Also, we still need to work on the REC language (i.e. not mand= atorily tied to output power contracts). What's the best way to approach? = Discuss w/ Jeff Dasovich? =09=09=09=09=09Stacey Bolton =09=09=09=09=09Environmental Strategies =09=09=09=09=09Enron Corp =09=09=09=09=09713-853-9916 direct=20 =09=09=09=09=09713-303-2632 cell=20 =09=09=09=09=09sbolton@enron.com <mailto:sbolton@enron.com< =09=09=09=09=09=20 =09=09=09=09=09 -----Original Message----- =09=09=09=09=09From: =09Thome, Jennifer =20 =09=09=09=09=09Sent:=09Wednesday, August 29, 2001 11:40 AM =09=09=09=09=09To:=09Bolton, Stacey =09=09=09=09=09Subject:=09FW: SBX2 78 - Update =09=09=09=09=09FYI - see Scott's message below for an update on SBX2 78. = =20 =09=09=09=09=09Also, I wanted to make sure that you have on your radar scre= en the most recent versions of the bills you analyzed. I noticed, for exa= mple, that in the most recent version of SB 532 (amended on 8/27) there wer= e some important revisions (for example, see highlighted text). This bill= is avaiable at: http://info.sen.ca.gov/pub/bill/sen/sb_0501-0550/sb_532_bi= ll_20010827_amended_asm.html =09=09=09=09=09Jennifer =09=09=09=09=09CHAPTER 5.6. CALIFORNIA RENEWABLES PORTFOLIO STANDARD PROGRA= M 25465. For purposes of this chapter, the following terms have the followi= ng meanings. (a) "Eligible renewable energy resource" means an electric gen= erating facility or solar thermal energy system that reduces the consumptio= n of electricity through the use of renewable resources and generating faci= lity that meets all of the following criteria: (1) Uses wind, solar, geothe= rmal, or biomass as its primary fuel. (A) A solar thermal energy system tha= t reduces the consumption of electricity may be considered an eligible rene= wable energy resource. (B) Fuel cells using renewable fuels are an eligible= renewable energy resource. (2) Improves the resource diversity in the elec= tricity market that serves the state, and increases the reliability of the = state's electricity system. The commission shall deem an electric generatin= g facility or solar thermal energy system to satisfy this requirement if it= meets any one of the following criteria: (A) It is located within or inter= connected to the control area of the California Independent System Operator= , the Los Angeles Department of Water and Power, or the Imperial Irrigation= District. (B) Its power is sold under a direct bilateral contract to a ret= ail seller and its energy is scheduled into the control area of the Califor= nia Independent System Operator, the Los Angeles Department of Water and Po= wer, or the Imperial Irrigation District. (C) It meets other fact-based cri= teria established by the commission. seller and its energy is delivered to = end-use customers within the state. (b) "Eligible existing renewable energy= resource" means an electric generating facility that satisfies all criteri= a in subdivision (a) and is in existence before January 1, 2001 September 2= 6, 1996 . Any facility that sells its output to an electrical corporation u= nder a contract entered into prior to 1996 under the federal Public Utiliti= es Regulatory Policies Act of 1978 (P.L. 95-617) shall be considered an eli= gible existing resource. © "Eligible new renewable energy resource" means= output from an electric generating facility that satisfies all criteria in= subdivision (a) and meets at least one of the following criteria: (1) The = facility commenced initial operation on or after January 1, 2001. September= 26, 1996. (2) The output represents incremental production from repowered = or refurbished existing facilities and project additions completed on or af= ter January 1, 2001 September 26, 1996 , as measured by the production of k= ilowatthours above the five-year average of the kilowatthours delivered fro= m the project during the five-year period ending December 31, 2000. kilowat= thours previously delivered from the project. Incremental output from repow= ered or refurbished facilities sold to an electrical corporation under a co= ntract entered into prior to January 1, 2001, that specifies fixed capacity= payments for the incremental output may not be considered an eligible new = renewable energy resource. (3) The output represents incremental output abo= ve levels specified in contracts for facilities defined in subdivision (b). =09=09=09=09=09Also: © "Eligible new renewable energy resource" means out= put from an electric generating facility that satisfies all criteria in sub= division (a) and meets at least one of the following criteria: (1) The faci= lity commenced initial operation on or after January 1, 2001. September 26,= 1996. (2) The output represents incremental production from repowered or r= efurbished existing facilities and project additions completed on or after = January 1, 2001 September 26, 1996=20 =09=09=09=09=09 -----Original Message----- =09=09=09=09=09From: =09"Scott Govenar" <sgovenar@govadv.com<@ENRON [mailto= :IMCEANOTES-+22Scott+20Govenar+22+20+3Csgovenar+40govadv+2Ecom+3E+40ENRON@E= NRON.com]=20 =09=09=09=09=09Sent:=09Tuesday, August 28, 2001 8:43 PM =09=09=09=09=09To:=09Sharma, Ban; Leboe, David; Eric Letke; Thome, Jennifer= ; Ken Smith; Bev Hansen; Hedy Govenar; Buster, Miyung; Guerrero, Janel; Rob= ert Frank; Mike Day; Lawner, Leslie; Kingerski, Harry; Karen Denne; Kean, S= teven J.; Alan Comnes; Susan J Mara; Kaufman, Paul; Jeff Dasovich; Steffes,= James D.; Rick Shapiro =09=09=09=09=09Subject:=09SBX2 78 - Update =09=09=09=09=09The Assembly Energy, Costs and Availability Committee heard = and voted on =09=09=09=09=09amendments to SBX2 78 proposed by many interested parties. = Some passed, =09=09=09=09=09some failed and most of them served to further confuse the c= ommittee =09=09=09=09=09members. Eventually the committee stalled on detailed propo= sals made by =09=09=09=09=09TURN and other consumer groups. =09=09=09=09=09During the hearing Hedy had the opportunity to speak to Nanc= y McFadden and =09=09=09=09=09Richard Katz from the Governor?s office regarding a couple o= f issues =09=09=09=09=09highlighted by Jeff and Mike Day. Richard said he is willin= g to make more =09=09=09=09=09technical amendments when the bill gets to Appropriations. = Subsequently, =09=09=09=09=09Hedy and I spoke to D.J. Smith at Jeff?s request. D.J. agre= ed that the bill =09=09=09=09=09needs to use the August 24th date as a grandfather date for = executed DA =09=09=09=09=09contracts, but specifically asked that we (Enron) not speak = to Richard about =09=09=09=09=09it. He said he will have the business entities request it a= s a clarifying =09=09=09=09=09amendment. If we request it, he thought Richard would be le= ss likely to =09=09=09=09=09believe it's clarifying since he believes our motives to be = too =09=09=09=09=09self-serving. Also, we spent some time with Lenny Goldberg = on direct =09=09=09=09=09access. We suggested that ?shall? be changed to ?may? in or= der to give more =09=09=09=09=09leeway to the PUC on direct access suspension. He didn?t ne= cessarily oppose =09=09=09=09=09the policy, but his position is not to amend a bad bill unle= ss you can =09=09=09=09=09totally rewrite it (which he later attempted to do). =09=09=09=09=09A lobbyist for a significant generator told us that they are= prepared to =09=09=09=09=09push Edison into bankruptcy (along with the Canadian governm= ent) if this =09=09=09=09=09bill passes. =09=09=09=09=09There is no consensus that this measure will ever get to the= Governor?s =09=09=09=09=09desk. =09=09=09=09=09The committee will meet again tomorrow at approximately 1:30= p.m. to vote on =09=09=09=09=09additional amendments and ultimately to vote on the complete= bill.
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