Doug

I just sent this to Lloyd.  Appreciate your confidence on the matter...as you 
can see not everybody is onside with things.  Unbalanced schedules go hand in 
hand with LMP - logically we won't/can't get unbalanced schedules in ERCOT 
without admitting we favor LMP for dispatch.  We can and will minimize this 
point during the discussion about balanced/unbalanced schedules but 
eventually one leads to the other.  Anyway the way in which LMP uses price 
signals to clear congestion is in our commercial interests.

 I really don't understand what is going on...how can this possibly be just a 
case of not understanding how things work?

Regards, Ron
----- Forwarded by Ron McNamara/NA/Enron on 03/02/2001 07:50 AM -----

	Ron McNamara
	Sent by: Ron McNamara
	03/02/2001 07:45 AM
		 
		 To: Lloyd Will/HOU/ECT@ECT
		 cc: 
		 Subject: What next?

Lloyd


 Yesterday I was at a meeting of the Protocol Review Committee in ERCOT.  At 
lunch, Brad Jones from TXU approached me with some shock and surprise.  
Apparently there is a fairly strong rumor going around that Enron has 
retrenched back to the no "pool" zonal model, that I have been completely 
marginalized, and that Robin Kittel resigned in response to this reversal.  I 
assured him that this was not the case.  Then I receive a note from Bill 
Hogan this morning (see below) which indicates what Rick Shapiro is saying 
publically.  I know that I am prone to overreacting, but I don't see how his 
statements help our efforts in ERCOT or SPP (or Florida for that matter) all 
they do is allow other market participants to think we (I?) don't know what 
is going on.  Why couldn't Rick have simply said that, as a general rule, for 
the real time aspects of the market, we favor PJM?  He could have indicated 
that we think there are problems with the FTRs, ancillary services and the 
scale/scope of the RTO but for real time dispatch we think PJM has some real 
benefits.  This would have been consistent with what we have been saying in 
ERCOT and SPP - and what we will eventually have to say in the Alliance if we 
are to be successful in changing that RTO.  Lloyd I really don't know what 
else I can do...

Regards, Ron


Ron,

         I was on a panel yesterday with Rick Shapiro at an AEI Conference 
in DC.  In response to a question about Enron's position regarding  PJM 
type models, he said that there had been a filing in Texas which might have 
created the impression Enron was now in support of a PJM 
approach.  However, he said, it was more complicated than that, and in any 
event that Enron had "withdrawn the filing in Texas."

         Has the filing been withdrawn?  What happened here?

Bill