postbot/aeslc_kw huggingface dataset:
Subject: California Update 07.26.01--Assembly Pulls Plug on Bailout

Just got a call from Hertzberg.
He pulled the plug last night on trying to get an Edison MOU finished by this  weekend.
Too complicated; too rushed; he couldn't pull it off, but intends to   continue working with folks.
He said that likelihood now is that the Assembly will recess, come back on  the 20th, and try again.
Since the Legislature has adjourned without resolving the Edison/energy  issue, the focus will now be at the CPUC, which is scheduled to rule on a  rate agreement between DWR and the CPUC, Direct Access suspension, etc.
at  its August 23rd meeting.
Best,
Subject: First Amended Complaint

Folks,  since many law firms have failed to exit the dark ages, they continue  to use wordperfect.
To open this, don't launch.
Instead, "detach."
Then  open the file that you've "detached" and it should convert from WP to word  and you should be able to open it.
Best,
Subject: Davis spokesman under fire for stock

FYI.
This is THE story out here today.
Given the repugnant things that  Maviglio has said about Enron over the past several months, it will be very  interesting to see whether he'll be able to withstand the fact that all the  time that he was saying those things, he owned our stock.
Gee, couldn't  happen to a nicer guy.
Best,
Subject: QF Ideas

Hi Mike: Parquet found me to talk about the QF ideas that you guys are bouncing  around.
I'll be in Portland tomorrow.
You have some time to sit and discuss  a bit?
Best,
Subject: Letter to Senators

Bear with me.
I want to work on it through the evening.
Will make sure that  it's out tonite, well in advance of tomorrow's 1 PM PDT conference call.
Best,
Subject: Letters to Senators--What Next?

I've just been informed that I'm being switched to Outlook tonite, which  means, I've been told, that I may not have access to my email later this  evening.
If that holds, I'll email the draft to everyone first thing in the  morning (hopefully by 8 AM Houston) time.
Otherwise, it'll land in your  email later tonite.
My apologies for all the machinations.
Best,
Subject: Getting the PUC off the Utilities Back for Purchases

Greetings:  We are getting considerable traction with the idea of using a "benchmark" to  judge utility purchases, similar in concept to what's in place on the gas  side.
To oversimplify it:    1) set the benchmark  2) the utility buys for consumers and tries to beat the benchmark  3) if (at the end of the year) the utility has beat the benchmark, it shares  the profits with consumers; if the benchmark wins, the utility shares the  losses with consumers  4) the PUC performs no "after-the-fact" reasonableness; no "second-guessing"  California likes the idea and is now looking to Enron to come up with what  the benchmark ought to be.
I talked to Calger a bit about it today and he  suggested that I get together with you guys.
As always, time's short.
Are  you available on Monday?
Thanks,
Subject: Reverse Auction

Got your message re: reverse auction all of the utility's demand.
Getting  (interestingly complicated), though.
Now, the utilities want to create a  "core/noncore" split in electricity, like in gas  (where large gas customers  can't take commodity from the utility).
With a core/noncore split, Edison  claims that QF contracts, nukes and other existing generation that it still  holds is sufficient to meet "core" needs and it therefore may not need  "contracts."
As you can imagine, large customers ain't clamoring to get  thrown into the market as "noncore" customers right about now.
But they may  find themselves without a choice.
I talked to Calger on Friday about reverse  auction versus benchmark and I'll be talking to the traders about it this  afternoon, and we'll be discussing further when Rick, Steffes et al are here  tomorrow.
Will let you know where it goes.
Best,
Subject: Vacation, Sweet Vacation

Hi Michelle:  Guess who?
Just went into Ehronline and noticed that under vacation it sez  that I'm entitled to 75 hours of vacation, and that I've used 48 hours,  leaving 27.
I think that I'm actually entitled to more than 75 hours.
Please tell me that I am.
Thanks very much.
Signed, Desperately in need of vacation  Also, I clicked on deferral enrollment, and by-golly if I couldn't find the  election form to download.
Am I just clueless, or is there another place  that I need to look for it?
Thanks a million.
Subject: Agenda for December 5 Meeting

Please keep this confidential at this point.
It's the agenda for the  California "subcommittee" meeting on Tuesday that I mentioned in an earlier  note.
They were unable to reschedule the meeting, which starts at 10 AM  tomorrow, but we're on the subcommitte and  will have very good access to the  final product, so I'm not too concerned about missing the "kickoff" meeting.
Folks in California are really looking to us to help figure out item #2  "forward contracting."
It would be very useful to discuss this outline  tomorrow while we're all together.
Best,
Subject: Possible Messages on Legislation in California

Here's an attempt at being frank about the legislation without jeopardizing  our relationships or commercial prospects.
Overall, we respect the effort, but California failed to get the ball over  the goal line:  On Siting Intentionally or not, California has designed power plant siting laws that  make it excruciatingly difficult to construct power plants in the state.
Folks seem to have lost sight of the need to balance growth and environmental  quality in California.
That's why nothing's been built in the state for a decade and developers are  going outside the state to build power plants.
Tinkering around the edges won't help; and (with all due respect) the  legislation passed yesterday tinkers.
Real reform is required if California hopes to build the supply necessary to  keep pace with Silicon Valley and a high tech culture and tame the price  spikes.
If developers continue to have to navigate through a maze of a half a  dozen--or more--state and local agencies, California's supply problems will
Subject: Distributed Power: The Next Big Investment?

Distributed Power: The Next Big Investment?
With today's electricity demand expanding beyond the reach of available  supply, and nationwide electric deregulation efforts providing inconsistent  results, distributed power just may be the next big thing, according to Bear  Stearns analyst Robert Winters.
With technology-laden, electricity-hungry companies popping up every time you  turn around, and blackouts and brownouts occurring more frequently as large  power grids are becoming less reliable, the analyst points towards  distributed energy services as a possible solution, and maybe the "next big  investment opportunity for the coming decade."
In Winters' 250 page report,  "Distributed Energy Services-The World's Power and Transportation Industries:  Set for a Revolution-Part 2," he examines technologies and companies within  the distributed energy services sector that might be able to take advantage  of the current situation.
"Thanks to major technological advances and energy deregulation, a wave of  new investment in the power industry has just begun.
We believe that this  coming era in the power industry could resemble the wave of investments which  flooded into the telecommunications industry following the breakup of AT&T in  the early 1980's," said Winters.
"Companies and municipalities need to find ways to ensure the availability of  high quality, reliable power," added Winters.
According to his research,  microturbines are the best positioned of the "new" technologies that would be  able to have an immediate impact on electric generation.
He based his recommendation on the fact that microturbines are small, quiet,  efficient and very versatile.
"They can be used as a main power source, a  back-up power source or as an alternative when there is a spike in  traditional energy prices," the analyst said.
"Microturbines can also be used  in remote locations, including developing countries, that do not have access  to electricity."
Another attractive feature of microturbines is their fuel  requirements.
The units often use natural gas, but can also use several other  fuels as well.
In the study, the analyst also examined fuel cells, flywheel technology, and  existing reciprocating engines technologies such as diesel engines and  Stirling engines, which he noted are enjoying a comeback.
In addition to the report, Winters initiated coverage on two distributed  energy companies.
He labeled Active Power, a company that is pioneering  flywheel technology, as a "buy" and Capstone Turbine Corp., a leading  manufacturer of microturbines, as "attractive."
The companies are in addition  to two fuel cell companies he currently follows.
Ballard Power is currently a  buy, and Plug Power is rated neutral.
Subject: First "Status Report" for California

Folks:  As you recall from out meeting on Tuesday, we decided that I'd pull together  a brief description of our key priorities and the actions underway to achieve  them.
The status report will be updated weekly.
We'll use the weekly update  as an important internal communication tool to keep folks abreast of  activities and developments in CA.
It will also serve as a a tool to help  identify the need to modify our priorities and/or actions in light of  ever-changing circumstances.
We were going to try to get the first report out this week, but with the  meeting in Houston, Sue's doctor appt and Karen's meetings with Marathon,  we'll get the first one out Monday.
My notes suggest that (today's) key priorities---understanding that
Subject: First Status Report for California

Rick, Jim, Harry:  You will have the first status report for California by COB on Monday.
We  will update that report weekly.
If there's anything you need between now and  Monday, please let me know.
Have a good weekend.
Best,
Subject: Letter to Loretta

Mike:  Please forward the letter to Jeff.
Jeff, we'll be signing the  letter.
Look like something TW can sign.
Give me a ring when you get a  chance to look at it.
Best,
Subject: CA ISO / CAL PX Information Related to 2000 Market Activity

Tim/Bob:  Attached is the letter that we sent to Lynch explaining the info we thought  ought to be made publicly available.
We're discussing how we can ensure that  the market has access to any and all information that FERC might use in its  "investigation" so that independent analyses might be undertaken.
Is there  anything in addition to the information we included in the letter to Lynch  (or that is already be publicly available) that FERC might use in its  investigation and that we ought to target for public release?
Thanks alot.
Best,
Subject: Pricing for CA IOU's Core Gas Customers

Paul:  Here's additional info for the "curtailment" data that we're pulling  together.
Utility Pricing for Core Gas Customers  Prior to the month in question, the utility forecasts gas prices based on  NYMEX monthly prices.
So for example, based on November's forecast, the  utility sets prices to be charged to core consumers in December.
When December's over, the utility compares forecast prices with actual  prices.
If the forecast was too low, and there's an undercollection, the  utility will increase January's price forecast by "just enough" to make up  for the December undercollection.
If prices were too high and there's an  overcollection, the utility will reduce January price forecast by just enough  to refund the overcollection.
If the overcollection/undercollection is very large, the utilities have  generally spread out the "true-up" over several months to avoid "rate shock"  one way or the other.
However, under the current circumstances, the  utilities may be less willing to spread it out, and may wish to recover the  entire undercollection in the following month.
In short, there's at least a  one-month lag in customer prices to account for differences in forecasts  versus actual.
Subject: Sponsoring Internships

Professor Berk:  Very interesting to hear the perspectives of a South African ex-pat last  evening.
Today's been very hectic, but I'll get back to you on the possibility of  having Enron sponsor internships for the financial engineering program.
Until we've had a chance to talk, could you wait before forwarding my name  along to anyone else in the fin eng group?
Much appreciated.
Best,
Subject: California Deregulation Summary

Jennifer:  I got a call from Chris Bailey (sp?)
needing a summary of  California dereg for a presentation(s) that Harold's assembling.
Attached is  summary that Mona pulled together for Harold a couple of months ago.
I don't  have Chris' email address (I've left him a message).
Could you forward this  along to him?
Thanks a bunch.
Best,
Subject: Illustrative Portfolios

FYI.
As you know, we're attempting to find a solution to the "reasonable  review" morrass that's impeding utility forward contracting.
For that  effort, we've worked with the Portland desk to pull together some educational  materials to use with a subset of California stakeholders that's trying to  devise a solution to California's melt down.
The attached graphs show 3 scenarios for the state as a whole.
1) "do nothing"   2) for 60% of IOU short position, split the amount 50-50 and 1cover half the  amount with 10-year  fixed priced power and the other half with 5-year fixed  priced power.
3) create a portfolio with a) 25% of short position covered by 10-year fixed  priced power, b) 20% of short position covered by 5-year fixed price power,  c) 15% covered by 1-year fixed price power, d) 20% covered by May-Sept  fixed-price power, and e) 15% from the PX.
The term of each scenario is 5 years.
Because each is priced off our our curves, the average price is roughly  equivalent for each of the three portfolios.
However, the graph shows (as  one would expect) that exposure to price volatility is significantly higher  under scenario 1 compared to 2 and 3.
The goal is to use the illustrative scenarios to persuade the industry that  in the short run (i.e., immediately) the utilities should be permitted to buy  a modest amount of power under 5 and 10 terms, and those purchases (if  undertaken using a "DealBench-like" tool) ought to be "per se" reasonable.
Subject: Conference Call

Could you please set up a conference call and send the information to the  list below?
Please set it up for tomorrow, Wednesday, at 9 AM PDT, for one  hour.
Thank you very much.
Jeff Dasovich/SFO/EES@EES, Steven J Kean/NA/Enron@Enron, James D  Steffes/HOU/EES@EES, Rob Bradley/Corp/Enron@ENRON, mpalmer@enron.com, Karen  Denne/Corp/Enron@ENRON, Mona L Petrochko/SFO/EES@EES, Susan J  Mara/SFO/EES@EES, Paul Kaufman/PDX/ECT@ECT Dave Parquet, Samuel  Wehn/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Sandra McCubbin/SFO/EES@EES
Subject: Industry Group Likes Our Portfolio Approach

Just met with the industry group trying to come up with a solution for  California.
The group liked our portfolio approach.
In sum:   A portfolio approach is the right long-term solution.
In the short run, our illustrative portfolios show that the utilities ought  to immediately fill a modest portion of their requirements via fixed-price,  long term contracts, and those contracts should be found reasonable, up  front, so long as the utility uses a competitive auction.
To stimulate  discussion we proposed that the utility fill 5% of its net short position  with 5-year, fixed-price contracts and 5% from 10-year, fixed-price contracts.
Everyone on the call liked the proposal.
After some discussion about whether  5%-5% was the right one, Edison agreed to come to Friday's meeting with its  proposal for price/term/quantity that it ought to contract for immediately.
(Edison may want the number to be higher, and the baskets to be different.)
Anything can happen between now and Friday, but thus far looks positive.
Thanks to everyone for the help in getting the proposal together, Steve Swain  in particular.
(Steve:  We may get asked to run a few more illustrative  portfolios for the group.)
I'll report back on what happens at the meeting  on Friday.
If there are any questions, etc., just let me know.
Best,
Subject: California Update--12.12.00

As we discussed, attached is a brief description of ENA's and EES' key goals  in California and the actions underway to achieve them.
We'll update the  status report weekly.
We hope that the weekly update will serve as a useful  internal communication tool to keep folks abreast of activities and  developments in CA.
It can also serve as a tool to help identify the need to  modify our goals and/or actions as circumstances change.
Comments on the form and/or substance of the document and how we can make it  more useful are welcome.
Best,
Subject: Final Exam for E220

Professor Aceves:  Attached are a word and an excel file.
Both are formatted for easy print  out.
Note that the excel file has two work sheets:  "balance sheet" and  "income statement."
I'd be happy to provide you with a hard copy, too, if  you would prefer a hard copy.
Just let me know.
Thanks for a great course.
All the best,
Subject: Please forward to the group

Here it is.
And I have JUST been informed that I have to be on a conference  call tomorrow from 1-2.
Could we do our call at noon or 2 pm California  time?
Sorry for the inconvenience.
Best,
Subject: Email Introductions

Everyone, meet everyone else's email address.
Thanks to one and all for the  taking the time to discuss the issues.
Seems that the conensus is that the  meeting was useful.
Have a great weekend.
Best,
Subject: Rick's Panel on Wholesale/Retail Market Power Issues

Lara:  I have rather hastily put this list together.
For that I apologize.
Hope it is helpful.
The things on the list are ones that you've likely  already considered.
Nevertheless, some of the issues we face in California  include:  1.
POWER PLANTS The utilities' subs are building power plants; competitors (like Enron) are  also trying to develop plants to sell power into both wholesale and retail  markets.
The utilities control the interconnection of plants to the grid.
The interconnection rules are currently so vague and ambiguous, that the  utility could quite easily favor its generation sub over competitors.
This would have an effect on prices at both the wholesale and retail level  (i.e., how do we know we've gotten the best generation deal if the utility  can favor its subs plants via interconnection?).
2.
DISTRIBUTED GENERATION And the same goes for DG:  in California many are pointing to DG as a viable  solution to the price spikes.
If the utility loses sales because a customer has installed DG on her  premises as a hedge against price spikes, the utility will have an incentive  to thwart interconnection of the DG unit.
(Recall that in many places,  recovery of distribution costs is derived from kwh sales; and if sales go  down, so can recovery of the utilities' distribution-related costs).
In addition, if someone attempts to install DG at the grid level (as opposed  to on-site DG) and sell the DG power in wholesale and retail markets, the  utility has the ability to frustrate the DG project via interconnection.
This permits the utility to retain bundled service customers.
Utility  control of DG Interconnection can also permit the utility to favor its DG  subs.
3.
INTERCONNECTION/VOLTAGE BUY-UP And the same goes for the retail level---remember how SDG&E used
Subject: Still beached

Dear Ms Leisure:  If you're still tanning, and still up for lunch, I'm game.
Besides, I owe  you a beer.
Let me know.
Don't work too hard,  Best,
Subject: Jessie Knight an Aggregator?

Please keep the following confidential.
Jessie Knight called.
Here's the latest.
Seems the Chamber of Commerce is going to launch a campaign with the  following messages:  1) Deregulation must go forward, not back.
2) The  transition will continue to be a bit bumpy.
3) The best option businesses  and families have is to switch to an alternative service provider.
The Chamber has cut deals with ESPs (I didn't get all the details, but sounds  like an exclusive) according to which the Chamber will aggregate customers  and deliver them to the ESPs.
I believe that The New Power Company will be  one of those ESPs.
Ray McNally's sister, who is one of our very satisfied rez customers in S.D.,  will appear at the press conference with the Chamber to announce the  program.
They are attempting to launch the program and have the press  conference this week.
The Chamber is also launching a program to educate S.D.
politicians and  business leaders on the benefits of retail choice and how to benefit from it.
The Chamber is still looking for a business customer to appear with them at  the press conference.
Subject: DRAFT message points for FERC hearing in San Diego

Attached are the draft message points.
As always, all comments, suggestions,  etc.
are encouraged and welcome.
I have five minutes.
Consequently, based  on what other panelists say, and general tenor of the hearing, may end up  emphasizing some points more and others less in opening, and use any Q & A to  round things out.
Joe/Mary:  any final word on format/participants?
Thanks.
Best,
Subject: Valuation of GA Activities

John/Gia:  You asked that we attempt to evaluate our activities.
Working with TW, I've  valued this one.
The California Commission ruled that the "Hector Road" natural gas recent  point in California ought to be made a primary receipt point.
This would  have had the effect of TW losing access right to 200 MMcf/d of capacity at  SoCalGas' Needles receipt point.
Best case scenario:  Under SFV rates, loss to TW is commodity rates (wash)  and the fuel margin.
TW calculates the fuel margin to be $5.8MM/yr.
Bad case:  If shippers on TW try to make the case that TW is at fault for  losing the primary access rights, then TW is at risk for the demand component  of the contracts associated with the 200 MMcf/d.
TW calculates the demand  charges loss to be $16.5 MM/yr.
Worse case:  In addition to actual damages listed above, shippers face  performance penalties and other contractual damages (from their customers)  and they try to pass those costs on to TW.
I discussions with TW, we concluded that the most likely case fell between  "best" and "bad," somewhere in the $12-15MM/yr range.
TW believes that without the assistance of CA Gov't Affairs in the case, the  $12-15 MM/yr would have been lost.
Be happy to discuss with you further.
Best,
Subject: DJ Freeman Sees Cal/ISO, PX Merger, Lower Price Cap

I'd say, "What next?
", but I'm afraid to ask....
Regarding our California strategy, preventing the merger would seem to be  right up there with "end the price caps" in our list of priorities.
At  today's FERC hearing, a hair-brained consumer advocate called for merging the  PX and the ISO.
During the panel I was on, I made the point that a merger  would make California's problems worse than they are today.
The FERC  Commissioners seemed somewhat responsive to my concerns.
P.S.
After the panel, Heber lobbied me hard to support transcos.
DJ Freeman Sees Cal/ISO, PX Merger, Lower Price Cap  Copyright , 2000 Dow Jones & Company, Inc.   By Jason Leopold       Of DOW JONES NEWSWIRES       SAN DIEGO (Dow Jones) -- David Freeman, seen a likely replacement for
Subject: Summary of Congressional/FERC Hearings in San Diego

Forgive the length, but it was a long couple of days.
Apologies in advance,  since I'm sure I've missed something.
Hopefully, it hits the highlights and  gives a good flavor.
Please foreward to anyone I've inadvertently missed.
Don't hesitate to contact me if you have any questions.
Best,