Jay:
I'm comfortable with our participation.

Best,
Jeff



	Jay Ferry@EES
	06/20/2001 03:43 PM
		 
		 To: Jeff Dasovich/NA/Enron@Enron
		 cc: 
		 Subject: ISO DRP Funding, Contracting, and Implementation Notice

Jeff,
Aside from a potentially more viable purchaser of curtailment in the CDWR, 
are there any new concerns that you have with us participating in the ISO DRP 
program..... we are presently getting ready to execute contracts with 
Homestake Mining and a second EOP / Johnson and Johnson contract covering 
another 10MW of curtailment and I thought it appropriate to check with you 
(like we did prior to the first signing).  I'm primarily interested in 
whether or not you are concerned about this being consistent with our other 
efforts.
Thanks,
j
---------------------- Forwarded by Jay Ferry/HOU/EES on 06/20/2001 03:39 PM 
---------------------------


Jay Ferry
06/19/2001 07:35 AM
To: Fred Kelly/HOU/EES@EES
cc:  
Subject: ISO DRP Funding, Contracting, and Implementation Notice

Summary

The California ISO has sought to provide greater security for  their 
financial commitments in the DRP Programs.
The "CDWR/CERS has concluded that it will not provide backing for the program 
as it is now designed."
"When details of a modified program design by CDWR/CERS become available, the 
ISO will permit parties with signed DRAs to "convert" to the new program by 
terminating the DRA and signing a new agreement", if they so choose.
Until then, "payments [will be] made to participants from market funds 
received from Scheduling Coordinators (SCs) on a pay-when-paid basis pursuant 
to DRA Section 6.2."
Enron will continue to work within the ISO program until a new program is 
defined.  At that time, we will review the alternatives, determine the best 
financial alternative and propose said alternative to our curtailable load.

See the communication at the bottom of this e-mail from the ISO for more 
specifics.


---------------------- Forwarded by Jay Ferry/HOU/EES on 06/19/2001 07:11 AM 
---------------------------


Fred Kelly
06/19/2001 06:31 AM
To: Jay Ferry/HOU/EES@EES
cc: David Hart/HOU/EES@EES, Mike Fink 
Subject: FW: Demand Buy-Down

Jay - can you provide a short summary of what this means with respect to the 
CA ISO program?  Thx
----- Forwarded by Fred Kelly/HOU/EES on 06/19/2001 06:28 AM -----

	Enron Energy Services

	Mark Dobler
	06/18/2001 09:15 PM
		 
		 To: Fred Kelly/HOU/EES@EES, Jeff Brown
		 cc: 
		 Subject: FW: Demand Buy-Down


---------------------- Forwarded by Mark Dobler/HOU/EES on 06/18/2001 09:15 
PM ---------------------------


Dan Leff
06/18/2001 06:11 AM
To: Mark Dobler/HOU/EES@EES, Ozzie Pagan/HOU/EES@EES
cc:  
Subject: FW: Demand Buy-Down


---------------------- Forwarded by Dan Leff/HOU/EES on 06/18/2001 06:10 AM 
---------------------------
From: Jeff Dasovich@ENRON on 06/12/2001 10:17 AM
Sent by: Jeff Dasovich@ENRON
To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly 
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol 
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT, 
Christina Liscano/HOU/EES@EES, Craig H Sutter/HOU/EES@EES, Dan 
Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, 
Don Black/HOU/EES@EES, Dorothy Youngblood/HOU/ECT@ECT, Douglas 
Huth/HOU/EES@EES, Edward Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, 
Erika Dupre/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, 
Gayle W Muench/HOU/EES@EES, Ginger Dernehl/NA/Enron@ENRON, Gordon 
Savage/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, Harry 
Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES, James D 
Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James Wright/Western 
Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES, Jeremy 
Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, 
Karen Denne/Corp/Enron@ENRON, Kathy Bass/HOU/EES@EES, Kathy 
Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin Hughes/HOU/EES@EES, 
Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES, Mark S 
Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES, 
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael 
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, mpalmer@enron.com, Neil 
Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula 
Warren/HOU/EES@EES, Richard L Zdunkewicz/HOU/EES@EES, Richard 
Leibert/HOU/EES@EES, Richard Shapiro/NA/Enron@ENRON, Rita 
Hennessy/NA/Enron@ENRON, Roger Yang/SFO/EES@EES, Rosalinda 
Tijerina/HOU/EES@EES, Sandra McCubbin/NA/Enron@ENRON, Sarah 
Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, 
Sharon Dick/HOU/EES@EES, skean@enron.com, Tanya Leslie/HOU/EES@EES, Tasha 
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim 
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, 
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S 
Bradford/HOU/ECT@ECT, Kathryn Corbally/Corp/Enron@ENRON, Jubran 
Whalan/HOU/EES@EES, triley@enron.com, Richard B Sanders/HOU/ECT@ECT, Robert C 
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg Wolfe/HOU/ECT@ECT, James 
Wright/Western Region/The Bentley Company@Exchange, Dirk vanUlden/Western 
Region/The Bentley Company@Exchange, Steve Walker/SFO/EES@EES, Jennifer 
Rudolph/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas 
Condon/SFO/EES@EES, wgang@enron.com, Scott Govenar <sgovenar@govadv.com>, 
Hedy Govenar <hgovenar@govadv.com> @ ENRON, jklauber@llgm.com, Mike D 
Smith/HOU/EES@EES, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel 
Guerrero/Corp/Enron@Enron, Eric Letke/DUB/EES@EES, Richard B 
Sanders/HOU/ECT@ECT, gfergus@brobeck.com, Michael Tribolet/ENRON@enronXgate, 
Robert Frank/NA/Enron@Enron, Richard B Sanders/HOU/ECT@ECT, 
gfergus@brobeck.com, Susan J Mara/NA/Enron@ENRON, Chris Holmes/HOU/EES@EES, 
David Leboe/Enron@EnronXGate
cc:  
Subject: FW: Demand Buy-Down


----- Forwarded by Jeff Dasovich/NA/Enron on 06/12/2001 10:15 AM -----

	Alan Comnes/ENRON@enronXgate
	06/11/2001 04:51 PM
		 
		 To: Tom Alonso/ENRON@enronXgate, Ray Alvarez/NA/Enron@ENRON, Robert 
Badeer/ENRON@enronXgate, Tim Belden/ENRON@enronXgate, Christopher F 
Calger/ENRON@enronXgate, Jeff Dasovich/NA/Enron@Enron, Michael M 
Driscoll/ENRON@enronXgate, Mark Fischer/ENRON@enronXgate, Chris H 
Foster/ENRON@enronXgate, Mark Guzman/ENRON@enronXgate, Steve C 
Hall/ENRON@enronXgate, Tim Heizenrader/ENRON@enronXgate, Paul 
Kaufman/ENRON@enronXgate, Elliot Mainzer/ENRON@enronXgate, Chris 
Mallory/ENRON@enronXgate, Susan J Mara/NA/Enron@ENRON, Matt 
Motley/ENRON@enronXgate, Dave Perrino/SF/ECT@ECT, Phillip 
Platter/ENRON@enronXgate, Jeff Richter/ENRON@enronXgate, Diana 
Scholtes/ENRON@enronXgate, Stephen Swain/ENRON@enronXgate, Mike 
Swerzbin/ENRON@enronXgate, Bill Williams III/ENRON@enronXgate, Greg 
Wolfe/ENRON@enronXgate
		 cc: John Shelk/NA/Enron@Enron
		 Subject: FW: Demand Buy-Down

DWR now has authorization to buy down load at market prices.   

 Press Release 
   
OFFICE OF THE GOVERNOR 
PR01: 285
FOR IMMEDIATE RELEASE
06/10/2001 



GOVERNOR DAVIS ORDERS FINANCIAL INCENTIVES FOR BUSINESSES WHO CUT ENERGY USE 

Order Calls for Streamlining of Energy Demand Reduction Plans 

LOS ANGELES 

Governor Gray Davis today signed Executive Order D-39-01, which authorizes 
the California Department of Water Resources (DWR) to implement voluntary, 
emergency load curtailment programs for commercial, industrial or other large 
businesses. In exchange for agreeing to reduce electricity usage during power 
emergencies, the DWR will offer financial incentives to participating 
customers. 

"Nearly 70 percent of energy usage in California is commercial," Governor 
Davis said. "Commercial load curtailment programs can help mitigate and even 
avoid blackouts. Therefore, I am ordering the Department of Water Resources 
to implement a program that allows businesses to receive compensation if they 
voluntarily agree to reduce their energy consumption during peak periods."

The Governor's order addresses the overlapping and sometimes inconsistent 
load curtailment programs currently offered by the California Independent 
System Operator, the Public Utilities Commission, and the Investor-Owned 
Utilities. 

The DWR and the ISO will implement the programs for Summer 2001 and Summer 
2002 and the DWR will finance the customer incentives. The incentives will be 
determined by a number of factors, including the size of the customer and the 
amount of energy to be curtailed. The overall cost for the program, estimated 
to be between $50-100 million, will ultimately depend on the number of 
customers who sign up. 

 


Executive Order D-39-01 



###


------------------------------------------------------------------------------
--

GOVERNOR GRAY DAVIS ?SACRAMENTO, CALIFORNIA 95814 ? (916) 445-2841
 
 
 

Back to Top of Page 

Conditions of Use | Privacy Policy | E-mail Webmaster  
, 2000 State of California. Gray Davis, Governor. 

TM/2001 Hollywood Chamber of Commerce licensed by Global Icons, Los Angeles, 
CA 90034. All Rights Reserved.  
 

 -----Original Message-----
From:  Scott Govenar <sgovenar@govadv.com>@ENRON 
[mailto:IMCEANOTES-Scott+20Govenar+20+3Csgovenar+40govadv+2Ecom+3E+40ENRON@ENR
ON.com] 
Sent: Monday, June 11, 2001 10:10 AM
To: Hedy Govenar; Mike Day; Bev Hansen; Jeff Dasovich; Susan J Mara; Kaufman, 
Paul; McDonald, Michael; McCubbin, Sandra; Rick Shapiro; Steffes, James; Alan 
Comnes; Kean, Steven; Karen Denne; Kingerski, Harry; Lawner, Leslie; Robert 
Frank; Ken Smith; Guerrero, Janel; Buster, Miyung; Thome, Jennifer; Eric 
Letke; Schoen, Mary; Leboe, David; Sharma, Ban
Subject: Demand Buy-Down

Please see the attached press release from Governor Davis regarding
demand buy-down.  Please also see the Executive Order at the bottom of
the page.

http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?BV_SessionID=@@@@
0373158305.0992279028@@@@&BV_EngineID=ealleejklgkbemfcfkmchcng.0&sCatTitle=Pre
ss+Release&sFilePath=/govsite/press_release/2001_06/20010611_PR01285_exec_orde
r_load_curtailment.html&sTitle=GOVERNOR+DAVIS+ORDERS+FINANCIAL+INCENTIVES+FOR+
BUSINESSES+WHO+CUT+ENERGY+USE&iOID=15261



---------------------- Forwarded by Jay Ferry/HOU/EES on 06/19/2001 07:11 AM 
---------------------------


"Dozier, Mike" <MDozier@caiso.com> on 06/08/2001 12:06:34 PM
To: PLWG  
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=PLWG@caiso.com>
cc:  
Subject: ISO DRP Funding, Contracting, and Implementation Notice


Notice to Winning Bidders in the California ISO's Summer 2001 Demand Relief
Program (DRP):

Over the last few weeks, Loads participating in the ISO's Demand Relief
Program raised the question of financial backing of payments for
participation in the program.  As you know, under the current version of the
ISO's Demand Relief Agreement (DRA), costs of the DRP are charged to metered
Demand including exports, and payments are made to participants from market
funds received from Scheduling Coordinators (SCs) on a pay-when-paid basis
pursuant to DRA Section 6.2.  In response to the concerns over backing by a
creditworthy party, the ISO approached the California Department of Water
Resources (CDWR/CERS) to provide this financial backing.

CDWR/CERS has concluded that it will not provide backing for the program as
it is now designed.  Discussions continue with CDWR/CERS and it appears that
backing may be provided, albeit for a modified program design.  The ISO will
publish details of such modified program when they become available.

With respect to Loads under Demand Relief Agreements that have been signed
by both the Load aggregator and the ISO, the Load aggregator can choose to
remain under the existing agreement's terms, which do not include credit
support.  In that case, the ISO will deem the DRA to be in full force and
effect, and subject to the uncertainty of payment timeframe under the
pay-when-paid provisions.  Alternatively, the ISO will allow Load
aggregators to terminate their Demand Relief Agreements if they provide
written notice to the ISO by June 13, 2001.  If the ISO does not receive
notice of termination from the Load aggregator by June 13, the ISO will
dispatch the Loads in accordance with the terms of the existing DRA.

With respect to Loads for which DRAs have not been signed by both the ISO
and the aggregator, the ISO is willing to go forward with the signing of
DRAs with such parties under the existing terms, which, again, do not
include credit support.  Aggregators wishing to go forward on such terms
should contact the ISO as soon as possible.

When details of a modified program design by CDWR/CERS become available, the
ISO will permit parties with signed DRAs to "convert" to the new program by
terminating the DRA and signing a new agreement.  Additionally, the ISO will
offer the same opportunity to participate in the new program to winning
bidders in the ISO DRP that choose not to sign the existing DRA.  We will
provide details regarding the new design and contract terms as soon as they
are completed.

Mike Dozier
ISO Manager of Contracts