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
		 
		 To: "'alp@ncpa.com'" <alp@ncpa.com>, "'altomczyk@wptf.org'" 
<altomczyk@wptf.org>, "'Anders.Glader@greenmountain.com'" 
<Anders.Glader@greenmountain.com>, "'asethi@wapa.gov'" <asethi@wapa.gov>, 
"'baennis@earthlink.net'" <baennis@earthlink.net>, 
"'barbara_klemstine@apses.com'" <barbara_klemstine@apses.com>, 
"'barry.bell@pacificorp.com'" <barry.bell@pacificorp.com>, 
"'bbowman@coral-energy.com'" <bbowman@coral-energy.com>, "'Bet5@pge.com'" 
<Bet5@pge.com>, "'billr@calpine.com'" <billr@calpine.com>, 
"'bjcampo@seiworldwide.com'" <bjcampo@seiworldwide.com>, "'bjobson@smud.org'" 
<bjobson@smud.org>, "'blunden@greenmountain.com'" 
<blunden@greenmountain.com>, "'bmock@coral-energy.com'" 
<bmock@coral-energy.com>, "'bob_anderson@apses.com'" 
<bob_anderson@apses.com>, "'Bob_Low@transalta.com'" <Bob_Low@transalta.com>, 
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<cabaker@duke-energy.com>, "'camiessn@newwestenergy.com'" 
<camiessn@newwestenergy.com>, "'cfi1@tca-us.com'" <cfi1@tca-us.com>, 
"'CGoligoski@avistaenergy.com'" <CGoligoski@avistaenergy.com>, 
"'chendrix@enron.com'" <chendrix@enron.com>, "'chris.mallory@enron.com'" 
<chris.mallory@enron.com>, "'Cinikr@sce.com'" <Cinikr@sce.com>, 
"'ckstenberg@bpa.gov'" <ckstenberg@bpa.gov>, "'cmensah@caiso.com'" 
<cmensah@caiso.com>, "'counihan@greenmountain.com'" 
<counihan@greenmountain.com>, "'CSullivan@coral-energy.com'" 
<CSullivan@coral-energy.com>, "'curt.hatton@neg.pge.com'" 
<curt.hatton@neg.pge.com>, "'curtis_L_kebler@reliantenergy.com'" 
<curtis_L_kebler@reliantenergy.com>, "'Cxg2@pge.com'" <Cxg2@pge.com>, 
"'dabo@dynegy.com'" <dabo@dynegy.com>, "'Dan_Kirshner@edf.org'" 
<Dan_Kirshner@edf.org>, "'Dana@ncpa.com'" <Dana@ncpa.com>, 
"'david-bobo@hlp.com'" <david-bobo@hlp.com>, "'dbenevid@enron.com'" 
<dbenevid@enron.com>, "'ddickson@avistaenergy.com'" 
<ddickson@avistaenergy.com>, "'Denise_Hill@transalta.com'" 
<Denise_Hill@transalta.com>, "'DFRA@dynegy.com'" <DFRA@dynegy.com>, 
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<dnelsen@gwfpower.com>, "'douglass@arterhadden.com'" 
<douglass@arterhadden.com>, "'dparque@ect.enron.com'" 
<dparque@ect.enron.com>, "'Dschopp@reliantenergy.com'" 
<Dschopp@reliantenergy.com>, "'dvwolfe@bpa.gov'" <dvwolfe@bpa.gov>, 
"'echang@wapa.gov'" <echang@wapa.gov>, "'Elaine@citizenspower.com'" 
<Elaine@citizenspower.com>, "'ffec@dynegy.com'" <ffec@dynegy.com>, 
"'Fieldejr@sce.com'" <Fieldejr@sce.com>, "'gackerman@wptf.org'" 
<gackerman@wptf.org>, "'gavaughn@duke-energy.com'" 
<gavaughn@duke-energy.com>, "'gcordell@enron.com'" <gcordell@enron.com>, 
"'geg1@pge.com'" <geg1@pge.com>, "'gmirich@enron.com'" <gmirich@enron.com>, 
"'gtbl@dynegy.com'" <gtbl@dynegy.com>, "'Harry.Singh@gen.pge.com'" 
<Harry.Singh@gen.pge.com>, "'hharris@coral-energy.com'" 
<hharris@coral-energy.com>, "'hnorth@pwrteam.com'" <hnorth@pwrteam.com>, 
"'Holly_M_Arney@reliantenergy.com'" <Holly_M_Arney@reliantenergy.com>, 
"'Hoppe5@quixnet.net'" <Hoppe5@quixnet.net>, "'jack.hawks@neg.pge.com'" 
<jack.hawks@neg.pge.com>, "'jackp@calpine.com'" <jackp@calpine.com>, 
"'jbarnett@coral-energy.com'" <jbarnett@coral-energy.com>, 
"'jcgardin@newwestenergy.com'" <jcgardin@newwestenergy.com>, "'Jchf@pge.com'" 
<Jchf@pge.com>, "'jdasovic@enron.com'" <jdasovic@enron.com>, 
"'Jeffrey.Bell@Williams.com'" <Jeffrey.Bell@Williams.com>, 
"'Jim.Portouw@PacifiCorp.com'" <Jim.Portouw@PacifiCorp.com>, 
"'jji@avistaenergy.com'" <jji@avistaenergy.com>, "'JKWI@dynegy.com'" 
<JKWI@dynegy.com>, "'jmacias@calpine.com'" <jmacias@calpine.com>, 
"'jmpa@dynegy.com'" <jmpa@dynegy.com>, "'Joe.Morrato@xemkt.com'" 
<Joe.Morrato@xemkt.com>, "'john_h_stout@reliantenergy.com'" 
<john_h_stout@reliantenergy.com>, "'jpmarchand@aep.com'" 
<jpmarchand@aep.com>, "'jsmollon@newwestenergy.com'" 
<jsmollon@newwestenergy.com>, "'Jstrack@sdge.com'" <Jstrack@sdge.com>, 
"'k.heinicke@att.net'" <k.heinicke@att.net>, "'kcro@dynegy.com'" 
<kcro@dynegy.com>, "'Kenneth_Lackey@EdisonMission.com'" 
<Kenneth_Lackey@EdisonMission.com>, "'lhamilton@avistaenergy.com'" 
<lhamilton@avistaenergy.com>, "'lnichols@bpa.gov'" <lnichols@bpa.gov>, 
"'mace@ncpa.com'" <mace@ncpa.com>, "'Marceline_Otondo@apses.com'" 
<Marceline_Otondo@apses.com>, "'marcie_milner@enron.com'" 
<marcie_milner@enron.com>, "'mark.tallman@pacificorp.com'" 
<mark.tallman@pacificorp.com>, "'mark_j_smith@FPL.com'" 
<mark_j_smith@FPL.com>, "'marvin_k_ballard@reliantenergy.com'" 
<marvin_k_ballard@reliantenergy.com>, "'mdkemple@bpa.gov'" 
<mdkemple@bpa.gov>, "'mdotson@enron.com'" <mdotson@enron.com>, 
"'Mdr2@pge.com'" <Mdr2@pge.com>, "'medwar@ladwp.com'" <medwar@ladwp.com>, 
"'medwards@anaheim.net'" <medwards@anaheim.net>, "'mgby@dynegy.com'" 
<mgby@dynegy.com>, "'MMilner@coral-energy.com'" <MMilner@coral-energy.com>, 
"'moulton@wapa.gov'" <moulton@wapa.gov>, "'mpetroch@enron.com'" 
<mpetroch@enron.com>, "'mrothleder@caiso.com'" <mrothleder@caiso.com>, 
"'mspruell@reliantenergy.com'" <mspruell@reliantenergy.com>, 
"'mward@ladwp.com'" <mward@ladwp.com>, "'Nam.Nguyen@powersrc.com'" 
<Nam.Nguyen@powersrc.com>, "'njwa@dynegy.com'" <njwa@dynegy.com>, 
"'omarid@calpine.com'" <omarid@calpine.com>, "'paolds@bpa.gov'" 
<paolds@bpa.gov>, "'paul.gribik@paconsulting.com'" 
<paul.gribik@paconsulting.com>, "'paul.kroger@pacificorp.com'" 
<paul.kroger@pacificorp.com>, "'Paul.Mead@enron.com'" <Paul.Mead@enron.com>, 
"'PDCR@dynegy.com'" <PDCR@dynegy.com>, "'Pete.witteried@pacifiCorp.com'" 
<Pete.witteried@pacifiCorp.com>, "'philm@scdenergy.com'" 
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"'rbadeer@ect.enron.com'" <rbadeer@ect.enron.com>, 
"'rhoward@reliantenergy.com'" <rhoward@reliantenergy.com>, 
"'rivey@pwrteam.com'" <rivey@pwrteam.com>, "'rjhickok@duke-energy.com'" 
<rjhickok@duke-energy.com>, "'rllamkin@seiworldwide.com'" 
<rllamkin@seiworldwide.com>, "'Rmk4@pge.com'" <Rmk4@pge.com>, 
"'robertlearle@aol.com'" <robertlearle@aol.com>, 
"'roger.pelote@williams.com'" <roger.pelote@williams.com>, 
"'rreilley@coral-energy.com'" <rreilley@coral-energy.com>, 
"'rsnichol@newwestenergy.com'" <rsnichol@newwestenergy.com>, 
"'RYoung05@apsc.com'" <RYoung05@apsc.com>, "'samuel.kwong@williams.com'" 
<samuel.kwong@williams.com>, "'samuel.kwong@williams.com'" 
<samuel.kwong@williams.com>, "'sander@wapa.gov'" <sander@wapa.gov>, 
"'semertz@aep.com'" <semertz@aep.com>, "'slamb@mtpower.com'" 
<slamb@mtpower.com>, "'smara@enron.com'" <smara@enron.com>, 
"'srmalone@newwestenergy.com'" <srmalone@newwestenergy.com>, 
"'Stacey.Kusters@PacifiCorp.com'" <Stacey.Kusters@PacifiCorp.com>, 
"'stephanie-newell@reliantenergy.com'" <stephanie-newell@reliantenergy.com>, 
"'stephen_fisher@transalta.com'" <stephen_fisher@transalta.com>, 
"'steve.huhman@mirant.com'" <steve.huhman@mirant.com>, 
"'steve_ponder@fpl.com'" <steve_ponder@fpl.com>, "'tbelden@ect.enron.com'" 
<tbelden@ect.enron.com>, "'tem_traders@transalta.com'" 
<tem_traders@transalta.com>, "'toenyes@wapa.gov'" <toenyes@wapa.gov>, 
"'tom@ncpa.com'" <tom@ncpa.com>, "'tom_delaney@enron.com'" 
<tom_delaney@enron.com>, "'TOMG@ncpa.com'" <TOMG@ncpa.com>, 
"'Vicki_Sandler@apses.com'" <Vicki_Sandler@apses.com>, 
"'w.metcalfe@wmetcalfe.com'" <w.metcalfe@wmetcalfe.com>, 
"'Wayne.Montefour@pinnaclewest.com'" <Wayne.Montefour@pinnaclewest.com>, 
"'wcreed@aep.com'" <wcreed@aep.com>, "'wes_harrigan@transalta.com'" 
<wes_harrigan@transalta.com>
		 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
> 
>