here is our update.  i think we should have this adequately documented by 
Monday night.


  ----- Forwarded by Linda Robertson/NA/Enron on 04/15/2001 10:43 PM -----

	Sarah Novosel
	04/13/2001 06:05 PM
		
		 To: James D Steffes/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Richard 
Shapiro/NA/Enron@ENRON
		 cc: 
		 Subject: Re: BENEFITS OF OPEN ACCESS - EXPANSION OF SUPPLY

Linda:

Attached are some examples of ways in which open access will help increase 
supply.  It's a work in progress, but here are my initial thoughts.

Also, Jim and I spoke with Tabors and Pickle and got clarification on the 
numbers we used in making the point that supply will increase with open 
access.   They said that the 2-5 percent works in the east (AEP) but they 
would like to be more conservative in the west (1-3 percent increase in 
supply).  This still results in an increase of supply on any given day of 
1,350 - 4,050 of MW.  I made this change to the "Examples" page but we'll 
need to make a similar change to the Lay paper.

Call me this weekend if you need me (202) 466-9160.

Sarah





	James D Steffes
	04/13/2001 05:43 PM
		 
		 To: Linda Robertson/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Richard 
Shapiro/NA/Enron@Enron
		 cc: 
		 Subject: BENEFITS OF OPEN ACCESS - EXPANSION OF SUPPLY

HERE ARE SOME OTHER THOUGHTS TO MAYBE WORK IN OVER THE COMING DEBATES --

There are real supply benefits from open access.  

First, reliability is increased.   Historically, utilities shared reserves 
only with adjoining systems.  Open access allows sharing of reserves, 
especially replacement reserves, over a broader market. 

Second, open access increases the productivity of the current generation 
portfolio.  Barriers to moving power to where it is needed allows less costly 
generation to sit idle.  In addition, open access reduces the generation 
capacity requirements of the overall system.  Instead of local utilities 
building for their needs, open access allows remote generation to reliably 
serve local needs.  The result is that lower capacity is required as more 
energy is served out of the same quantity of capacity, resulting in long-term 
efficiency.

Third, open access should improve the utilization of the current transmission 
network.  In the natural gas context, pipeline open access has allowed for 
transported volumes nearly quadrupling since 1985.