HE 14 sale to CERS

Keoni,

Here are the details on our sale to CERS for HE 14 at Palo Verde devers.

I spoke with Linus at CERS at approximately 11:50--At that time I sold him 90 mws at $29 delivered at PV for HE 14, I told him the energy was coming from the CAISO.

I then called Mike at SRP marketing after speaking with Linus. For HE 13 I had sold Mike 75 mws. I told him the schedule would be going to a zero for HE 14.

I called the CAISO to notify them my export EPMI_CISO_SALSA would be going to CERS at PV devers and not SRP.

I began speaking with Bhavin at the Palo Verde desk at 12:20 regarding scheduling of the energy to CERS at PV devers.

I told Bhavin the export -EPMI_CISO_SALSA- would be going to CERS and that it was effectively a net schedule(90 mws out at PV devers/90 mws in at PV devers).Bhavin asked that I call a counterparty with a control area interest at PV and show the schedule going to and coming from a control area.

I acknowledged this request and called El Paso Electric to attempt to show the schedule to them and from them. I was not comfortable with this step as I viewed it as unnecessary and told EPE I would call them back. I then called SRP transmission to discuss the schedule with them. At approximately 12:40 I discussed the 90 mw net schedule with SRP transmission. SRP control said a net schedule would show as zero.

I then spoke with EPE and told them to forget the schedule.

I called Bhavin back and told him SRP was aware of the schedule.
Bhavin told me that he would make a note of the schedule and show it as net scheduled.

At 13:02 Bhavin called me back and told me he was not checking out with SRP at PV devers.
I called SRP transmission and went over the schedule one more time. SRP transmission still showed the 75 mw schedule from HE 13. I told SRP transmission that the 75 mw schedule was no longer flowing to him. He told me he would call his marketer.

While transacting for HE 15, I again spoke with Mike at SRP marketing and Mike told me he had missed telling his transmission to pull out the 75 mw schedule.

I believe the original problem was the net scheduling and that it was compounded by miscommunication on SRP's end. It should be noted that Bhavin was polite and professional throughout my conversations with him.

I think the ability to net schedule at tie points is important. My feeling is that the CAISO schedulers should have the same scheduling capabilities at the tie points as those schedulers outside the CAISO. Please let me know what you find out regarding this practice. If you have any questions for me please let me know.

Thank you for your help.

Bill