FW: A/S inter-SC trade

-----Original Message-----
From: Almeida, Keoni [mailto:KAlmeida@caiso.com]
Sent: Monday, October 08, 2001 2:20 PM
To: Williams III, Bill
Subject: A/S inter-SC trade

Scenario 1
EPMI makes a forward deal with Duke to provide its "obligation" for A/S.
Essentially EPMI is trading off its "obligation" to Duke using inter-SC
template which references the SC (Duke) that is taking on the obligation.
No energy is scheduled by EPMI, just the indication that the obligation is
going to Duke. The energy curve is scheduled by Duke only. EPMI can not
schedule the energy. Duke is responsible for providing the energy and
receiving the payment or No Pay. Although, Duke has various options as to
how they will take care of the traded obligation. Suffice it to say EPMI
only has to trade their obligation and it is then Duke's obligation to deal
with as they choose. If Duke chooses to let the ISO provide for that
obligation then there would not be any energy or No-Pay issues.

Scenario 2
EPMI has a resource within its portfolio that will self provide the
obligation for A/S. EPMI puts in a schedule indicating which resource, the
capacity that will be self provided, and the energy that will be bid in.
EPMI recieves the payment for the energy and any No Pay charges.

Hope this helps.

Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager: 916/814-7352
alpha page: 9169812000.1151268@pagenet.net
e-mail: <mailto:kalmeida@caiso.com<