From: jeff.dasovich@enron.com
To: susan.mara@enron.com, james.steffes@enron.com
Date: 2001-03-13 09:54:00+00:00
Subject: Re: FW: Adjustment Bid Market Update

Are we supporting this (at least conceptually)?  Seems important to have a 
tangible alternative to the horrible plan that the ISO Board/Staff is 
contemplating.

Best,
Jeff



	Jacqlynn Wu <jwu@apx.com>
	03/12/2001 06:45 PM
		 
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		 cc: Ed Cazalet <ed@apx.com>, John Stremel <jstremel@apx.com>, Michael 
Heinrich <mheinrich@apx.com>
		 Subject: FW: Adjustment Bid Market Update


> -----Original Message-----
> From:   Michael Heinrich 
> Sent:   Monday, March 12, 2001 4:17 PM
> To:   Jacqlynn Wu
> Subject:   Adjustment Bid Market Update
> 
>  <<...>> 
> 
> 5201 Great America Parkway, Suite 522
> Santa Clara, CA 95054
> 408 517-2100
> 408 517-2985 fax
> 
> 
> March 12, 2001
> 
> 
> Dear Colleague,
> 
> Thank you for your participation and support in resolving our problems
> this summer regarding congestion management in the California market.  As
> we have indicated, we believe that this problem is costing us millions of
> dollars today and continued pro rata schedule cuts as a method of
> congestion management will continue to reduce energy supply this summer
> and escalate substantially to well over $100,000,000 in replacement energy
> costs.
> 
> As you suggested, we presented our solution of operating an adjustment bid
> market to manage congestion to the CAISO Board of Governors on February
> 28, 2001.  Following that meeting we were requested to work with the CAISO
> staff to develop a resolution to be presented at the next Board meeting on
> March 15, 2001.  The CAISO staff will be presenting their solution
> described as "Market Stabilization Plan/Interim Market Redesign" in a
> effort to resolve this and other problems.  
> 
> While the CAISO plan may have long-term benefits, it has been brought
> forward without the benefit of full stakeholder airing and we believe that
> it will be difficult to complete all software and systems work in time to
> have benefit this summer.  In addition, it will require significant
> participant re-education.  We are also very concerned about the amount of
> time remaining to complete this process along with the risks and costs
> associated with its implementation.  Therefore, APX will finalize its
> offer for the solution that we described to you on February 21 as an
> alternative to the CAISO staff plan during the upcoming CAISO Board of
> Governors meeting.  We know that our solution can be implemented in time,
> that it will improve adequate supply and that it will save millions of
> dollars this summer. 
> 
> We have heard from many of you that you support this market as a viable
> way of mitigating the high cost of congestion in the coming months. WE ARE
> ASKING FOR YOUR SUPPORT OF THIS PLAN WITH the CAISO Board of Governors on
> March 15, 2001.
> 
> 
> Sincerely,
> 
> 
> 
> Michael L. Heinrich         John Stremel
> Vice President            Vice President
> Automated Power Exchange      Automated Power Exchange
> 
> 
> Mike
> Michael L. Heinrich
> Vice President
> Automated Power Exchange
> 5201 Great America Parkway
> Suite 522
> Santa Clara, CA  95054
> 408-517-2100
> Direct: 408-517-2159
> Mobile: 408-393-1092
> e-mail: mheinrich@apx.com
> www.apx.com
> 
>