Enron Mail

From:john.malowney@enron.com
To:bill.williams@enron.com
Subject:Montana Power Company (MPC) Energy Imbalance
Cc:shift.portland@enron.com
Bcc:shift.portland@enron.com
Date:Thu, 21 Jun 2001 15:37:30 -0700 (PDT)

Bill; Mike Cashell (MPC's Transmission Mgr.) just phoned me concerned, beca=
use MPC's Real-Time group requested EPMI purchase energy for them under our=
existing Energy Imbalance structure, and was notified by our Real-Time gro=
up that due to the newly implemented FERC price cap, we were have difficult=
y securing any resources. Just to clarify things, we are settling MPC's Ch=
oice customers Energy Imbalance position, and PP&L Montana has the right to=
any length resulting from MPC's "domestic" load Energy Imbalance. In othe=
r words MPC is settling two separate Energy Imbalance accounts, so during t=
he hour they may be turning energy back to PP&L Montana, while at the same =
time finding themselves short for the Choice loads. During the recent bull=
ish pricing conditions, Choice customer were leaving themselves long, as of=
late, MPC is experiencing the Choice customers doing the opposite, positio=
ning themselves short. The net result is that MPC will most likely be expe=
cting us to fill a short position from this point on, so I'd really like to=
see what we can do to honor their requests, mindful of the favorable posit=
ion we've enjoyed over the last several months. Let me know if you'd like t=
o discuss this further, or better yet if you've got a workable solution to =
the problem. In the meantime, thanks again to you and your staff for the o=
utstanding performance thus far in dealing with MPC. John