Today FERC issued the following draft orders: NYISO TEP and Bid Cap (ER01-3001): Commission granted NYISO's request to extend the currently effective $1000/MWh Bid Caps on certain NYISO adminstered markets, and to extend its Temporary Extraordinary Procedures for Correcting Market Design Flaws and Addressing Transitional Abnormalities, until the Northeastern RTO is operational. The Commission ordered NYISO to narrow the scope of the TEP, and to file tariff sheets doing so within 30 days. NYISO proposed virtual bidding procedures (ER01-3009; ER01-3153): Tariff changes to implement virtual bidding were approved. The changes would allow market participants to bid non-physical generation and load into the day-ahead market and settle the bids in the real-time market. Also accepted were NYISOs Market Mitigation Measures to address gaming or market power strategies that might emerge as a result of the virtual bidding. NYISO - Cost responsibility for new interconnections. (ER01-2967): Tariff changes allocating cost responsibility for interconnection facilities. The provisions allocate to developers 100% of the cost of facilities necessary to physically interconnect the project. Additionally, developers are allocated the coswts for transmission system upgrades that would not have been made "but for" the interconnection, minus the cost of any facilities that the NYISO's regional plan dictates would have been necessary anyway for load growth and reliability purposes. ISO-NE - Interim Bid Caps (ER01-3086): Commission approved extension of bid caps until the Northeastern RTO is operational. Calpine v. ISO-NE (EL01-124): Commission granted complaint by Calpine and Mirant, finding that ISO-NE has amended Market Rule 5 to exclude external contracts from setting the energy clearing price, in violation of a Commission order. If you need further information, please let me know. Susan Lindberg x30596
Answer: Orders issued today in NYISO and ISO-NE proceedings
Norma, Happy New Year. Look forward to working with you in 2001. Can you send the resume of L Xu to me in an electronic form? Thanks
Answer: L Xu
Mark and Greg, I hope that you are receptive to unsolicited advice. 1) Give a single officer the authority to say "no" to deals before they get to your Office of the Chairman. Rick Buy may not want the job, but it should be someone in a similar position with real authority. Perhaps, each business unit should have such a person. Key to making this work is to find a person who will try all ideas to make a deal "good" before killing it. 2) EIM may need a new CEO. If Bowen is not going to take the job, then you should strongly consider Shankman for the post. I think that he has done a fine job at EGM in the last 12 months, and this could be his chance to step up and run his own shop. 3) Stop paying a dividend!!!!!!! Given that we are not appealing to an institutional investor base that requires a dividend, we should keep the hundreds of millions of dollars. 4) We probably have too much metal in inventory in London. We should consider getting out of a business that requires that much physical inventory. Thank you for taking the time to read my suggestions. James C. Lewis VP Finance and Structuring EGM
Answer: General Suggestions
Here's what I have so far (who are we supposed to tell about this??) (i) Broker Margins Approx: $50mm Availability: End of Week Probability: 85% Current position (initial margin) $60mm out. John Arnold will tomorrow bring a large portion of this back by moving positions to our Paribas credit line (we have a $75mm line which we are only using $15mm of). I am working on the rest, which is spread across various other EGM books. (ii) Peoples JV Approx: $135mm Availability: Within month Probability: 50% We have (i) $10mm in the enovate bank account ($20mm in total, 50:50 Enron Peoples), (ii) $40mm storage inventory and (iii) $75mm in a pre-pay. (iii) Emmissions Reductions Credits (held by West Power). Approx: $25.5mm Availability: Dependent on whether financing Probability: 50% If the vehicle is rolled, then we could look to use the additional capacity. The vehicle will be rolled next week. (iv) Mariner - Zero ($2mm in bank) Deffner's group working on EGM's $400mm and Joe Gold is ready to go with his $300mm. So that's good, we should be able to get some of this off.
Answer:
Cash