Message-ID: <26415790.1075853199449.JavaMail.evans@thyme>
Date: Fri, 29 Dec 2000 01:16:00 -0800 (PST)
From: alan.comnes@enron.com
To: susan.mara@enron.com
Subject: Re: There is No Christmas for CA -- NEW FERC Filings
Cc: richard.shapiro@enron.com, james.steffes@enron.com, joe.hartsoe@enron.com, 
	sarah.novosel@enron.com, mary.hain@enron.com, tim.belden@enron.com, 
	jeff.dasovich@enron.com, sandra.mccubbin@enron.com, 
	donna.fulton@enron.com, david.parquet@enron.com, 
	christopher.calger@enron.com, gfergus@brobeck.com, 
	christian.yoder@enron.com, richard.sanders@enron.com, 
	robert.badeer@enron.com, jeff.richter@enron.com, 
	chris.foster@enron.com, dennis.benevides@enron.com, 
	jubran.whalan@enron.com, neil.bresnan@enron.com, 
	roger.yang@enron.com, rcarroll@bracepatt.com
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Here is another hefty ISO  filing that came in this week.  Please let Sue o=
r=20
I know if you believe we should intervene/protest.

Alan Comnes

Summary of ISO Amendment 34:

Filed: December 28

Effective Date: 1/1/01 (expedited treatment requested)

Protests Due: January 17? (need to confirm this)

Filing in a Nutshell: The ISO states that the purpose of the amendment is t=
o=20
clarify certain issues associated with implementation of the new transmissi=
on=20
Access Charge methodology it orginally proposed in Amendment No. 27.=20
(According to the ISO, Amendment 27 has been accepted for filing, suspended=
,=20
and set for hearing.  Settlement negotiations are ongoing.  (Is Enron a par=
ty=20
to these settlements?)) In addition, the ISO provides new transmission Acce=
ss=20
Charge (TAC) rates that will be in effect if the Commission approves the Ci=
ty=20
of Vernon joining the ISO effective January 1, 2001 and the amount of Firm=
=20
Transmission Rights that will be given to Vernon in accordance with the ISO=
=20
Tariff.

Specific Proposed Changes

Clarification of Wheeling Access Charge Quantity

The ISO proposes that these provisions be clarified to specify that in the=
=20
determination of the Wheeling Access Charge, the proper calculation is to u=
se=20
transmission facility ownership and Entitlements less all Encumbrances. =20
Encumbrances include transmission used to meet demands of existing=20
contracts.  This is how the ISO is currently calculating this charge and th=
e=20
ISO appears to be using this filing to codify this method.

New HV TAC Rates Using Year-1 of the ISO=01,s Proposed Transmission Methodo=
logy

The current Access Charge methodology consists of three separate zone rates=
=20
based on the Transmission Revenue Requirement of the Original Participating=
=20
TO.  Because each zone corresponds to the service territory of the TO, they=
=20
are known as =01&license plate=018 rates.  Under Amendment No. 27, this met=
hodology=20
continues in effect until a New Participating TO joins the ISO.  Once that=
=20
occurs, the Access Charge for High Voltage Transmission Facilities will be=
=20
assessed based on the combined High Voltage Transmission Revenue Requiremen=
ts=20
of all the Participating TOs in each TAC Area.

The filing claims to implement an already-approved transition formula where=
in=20
new members of the ISO will pay a rate that is a mix license place and syst=
em=20
average embedded costs.  The goal is that after 10 years there will be only=
 1=20
high voltage access charge. The following table shows that under the curren=
t=20
method, which would be a 90/10 split of license-plate/system-average charge=
s,=20
PG&E and SCE TO access charges would rise approximately $3.2 million and=20
Vernon would be subsidized approximately $7 million.

Calculation of the net (benefits)/burdens from Access Charge and GMC Impact=
. =20
 PG&E and SCE have a $32 Million cap annually and=20
SDG&E has a $8 Million cap annually; Vernon is held harmless; I
OUs pay muni cost increases in proportion to their cap relative to the tota=
l=20
cap.=09Adjusted
=09Net
=09(Benefit)/
=09Burden
=09($1000)
=09[37]
PG&E=09$3,283=20
SCE=09$3,283=20
SDG&E=09$821=20
Vernon=09($7,051)
  Total=09$336=20
=09
=09
=09Note: a positive number means the TAC is going up.  A negative number me=
ans=20
the TAC is going down (or will be lower than would be the case under 100%=
=20
license plate ratemaking)


Vernon=01,s Existing Transmission Rights Converted to FTRs

Veron, by joining the ISO effective 1/1/01, agrees to convert existing=20
transmission rights to FTRs of presumably an equivalent amount.  The propos=
ed=20
FTRs to allocate to Vernon are in the filing.  These FTRs will expire when=
=20
the underlying contract right expires or 10 years, whichever is sooner.







Susan J Mara@ENRON
12/28/2000 03:57 PM
To: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Joe=20
Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Mary=20
Hain/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Jeff Dasovich/NA/Enron@Enron,=20
Sandra McCubbin/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT, Donna=20
Fulton/Corp/Enron@ENRON, David Parquet/SF/ECT@ECT, Christopher F=20
Calger/PDX/ECT@ECT, gfergus@brobeck.com, Christian Yoder/HOU/ECT@ECT, Richa=
rd=20
B Sanders/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Jeff Richter/HOU/ECT@ECT,=
=20
Chris H Foster/HOU/ECT@ECT, Dennis Benevides/HOU/EES@EES, Jubran=20
Whalan/HOU/EES@EES, Neil Bresnan/HOU/EES@EES, Roger Yang/SFO/EES@EES
cc: rcarroll@bracepatt.com=20

Subject: There is No Christmas for CA -- NEW FERC Filings

Here we go:

12/20/00 - PG&E files emergency request for rehearing of 12/15 order.  It=
=20
seeks refunds, cost of service rates, elimination of market-based rate=20
authority and more.

12/20/00 - CA Bureau of Audit opposes the emergency motion of the generator=
s=20
to require FERC-like confidentiality provisions to apply to data requested=
=20
from the ISO.

12/22/00 -  Dynegy files complaint - EL01-23-000 - alleging discriminatory=
=20
use of OOM by the ISO against in-state generators.  Seeks pricing above=20
short-run marginal costs plus 15% on a temporary basis and to prohibit the=
=20
ISO from using OOM for non-emergency conditions (I thought we won that one =
a=20
while ago).  And more ...

12/22/00 - Dynegy seeks clarification on FERC's 12/15 order -- wants FERC t=
o=20
clarify that standard commercial practices will be used to deal with the=20
utilties' creditworthiness problems, wants to avoid the IOUs somehow claimi=
ng=20
the FERC order obviates their need to be credit worthy. (huh?)

12/26/00 - CalPX files to request for rehearing of FERC's 12/15 order to sa=
ve=20
itself.  It asks to stay the prohibition for the IOUs to sell to the PX, st=
ay=20
the termination of the CTS rate schedule, and stay the $150 "breakpoint"=20
applied to the PX day-ahead market.

12/?/00 - Cal PX also institutes new pricing method (plus and minus $125 fo=
r=20
constrained areas), but claims it's only a software change and does not=20
require a Board vote or a FERC filing

Note:  There were no filings made on Christmas Day, as far as we can tell.

regards,
Sue
 =20

