The PPO - Power Purchase Option - is a unique program based on the IL restructuring law.  Texas has no analogous service.  

I agree with your statement that we don't need an RTO, we need to fix the physical retail transmission rules.  It's important to keep consistent messages.

Jim

 -----Original Message-----
From: 	Nicolay, Christi L.  
Sent:	Thursday, November 01, 2001 4:28 PM
To:	Steffes, James D.
Cc:	Migden, Janine
Subject:	FW: ICC Meeting

Jim -- Would Entergy in Texas have a PPO?  In your testimony at the Texas PUC we argued that a retail program doesn't necessarily need an RTO -- it does need the ability to go physical on a fair basis, including rational imbalance provisions of the TP OATT--not punitive.  Here we are stating that there should be a continuation of ComEd's PPO until there is a functioning wholesale market, including a good imbalance provision.  Should the argument go more toward that retail physical could work if ComED changed certain tariff provisions now, even without a PPO?  

 -----Original Message-----
From: 	Migden, Janine  
Sent:	Monday, October 29, 2001 3:42 PM
To:	Ader, Jeff; Allegretti, Daniel; Baughman, Edward D.; Bernstein, Mark; Boston, Roy; Burrows, John; Clynes, Terri; Courtney, Mark; Decker, Charles; Detina, Ken; Frazier, J Ryan; Gahn, Scott; Hueter, Barbara A.; Kingerski, Harry; Letke, Eric; Lewis, James; Mastrangelo, Lino; Merola, Jeff; Migden, Janine; Nicolay, Christi L.; Persson, Roger; Roan, Michael; Sewell, Doug; Shapiro, Richard; Sharfman, Guy; Sharp, Greg; Snyder, Brad; Steffes, James D.; Stoness, Scott; Landwehr, Susan M.; Ulrich, Marc; Whalan, Jubran; Wood, James; Young, Ress
Subject:	ICC Meeting

The ICC Energy Committee held a meeting to discuss ComEd's proposal to drop the PPO.  We argued that this should not be allowed until the wholesale market/delivery issues are dealt with because otherwise customers will have no choice but to return to ComEd at the higher bundled rate.  The good news is that a rather lengthy discussion on this issue ensued as a result.  The industrial customer group and Mid American Energy supported our views; however AES New Energy said that this was not a problem for them.

We also commented that once the PPO goes away it should not be resurrected due to the uncertainty it would create in the market.  ComEd responded that under the statute they can not offer to waive the PPO but could negotiate an arrangement on the CTC if approached by the customer.  This would mean that we could negotiate on behalf of all our customers regarding the CTC.  

We have the opportunity to file comments to the Commissioners before the actual filing.  A draft is attached. 

 << File: Commissioner Terry Harvill.doc >> 

If you have any comments, please respond by the end of the week.