Liz -- I've been unable to discuss this with Doug, as he's been out of the office. I'm not even sure if he's terribly interested in this product being promulgated -- the UBSWenergy ERCOT products he will first offer are confined to specific zones.  This product definition would presumably be used to support a "Seller's  choice" ERCOT-wide product spanning the four current zones, and the Market Clearing Price ("MCP") applicable would be in that zone the Seller specified day-ahead. (That is, there are several moving parts to this.) The denomination 'Hourly Firm' was also a matter I wished to explore with him.  Attached is a markup with my thoughts on the draft product, and this morning I'm going to talk to some other folks who might have a read on the operation of the MCP in relation to the LDs calcualtion.  Please note that if one specifies that the MCP is the cap on the Replacement Price, then a presumption is being made that no additional costs are being incurred in purchasing substitute product.  I think this is an acceptable assumption but Doug may think different.   The corrections on the attachment include some intended merely to use the defined terms actually stated in the Protocols.  The changes in the second paragraph are intended to reverse any implication that the settlement on LDs would be held open a month or even 6 months until a final MCP value is identified by ERCOT -- I'd confine the window for recalculation to one month. --DP
 
 
 
 

-----Original Message-----
From: Sager, Elizabeth 
Sent: Wednesday, January 30, 2002 5:57 PM
To: Portz, David
Subject: FW: Final ERCOT Physical Hourly Firm LD Definition


David  - can you review and let me know your thoughts (there is an EEI meeting next Tues to discuss collateral annex and dede is proposing to also discuss this.  thanks

-----Original Message----- 
From: "Tillett, Nina" <NTillett@reliant.com>@ENRON on behalf of "Russo, Dianne" <DRusso@reliant.com> 
Sent: Wed 1/30/2002 4:07 PM 
To: Andy Katz (E-mail); Babak Pooya (E-mail); David Perlman (E-mail); Ed Comer (E-mail); Sager, Elizabeth; Fritz Henze (E-mail); Murphy, Harlan; J. Crespo (E-mail); Maryjo Rogers (E-mail); Mitch Dutton; Noel Trask (E-mail); Patty Dondanville (E-mail); Randy Osteen (E-mail); Stack, Shari 
Cc: 
Subject: Final ERCOT Physical Hourly Firm LD Definition



        We have slightly revised the definition of the ERCOT hourly

product which is on the agenda for Tuesday's meeting.

Dede Russo

Reliant Resources Legal Department

P.O. Box 1384

Houston, TX  77251-1384

(713) 207-5240

(713) 207-0161 (fax)

drusso@reliant.com


 <<Final ERCOT Physical Hourly Firm LD Def 013002.doc>>



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