---------------------- Forwarded by Mary Hain/HOU/ECT on 01/15/2001 07:41 PM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Joe.Hartsoe@enron.com                           01/15/2001 09:17 AM
	

To: Mary.Hain@enron.com
cc: acomnes@enron.com, dbva@radix.net 
Subject: FERC Conference on Market Monitoring- REVISED DRAFT



Mary  --  Please check with the desk and Alan to see if we can live with
this or have suggestions.  Thanks Joe.
----- Forwarded by Joe Hartsoe/Corp/Enron on 01/15/2001 11:12 AM -----

                    "Jackie
                    Gallagher"           To:     <bhawkin@enron.com>, 
<bmerola@enron.com>,
                    <JGallagher@e        <christi.l.nicolay@enron.com>,
                    psa.org>             <donna.fulton@enron.com>,
                                         <janelle.scheuer@enron.com>,
                    01/12/2001           <jeff_brown@enron.com>, 
<jhartso@enron.com>,
                    11:14 AM             <Mary.Hain@enron.com>, 
<sarah.novosel@enron.com>,
                                         <tom.hoatson@enron.com>
                                         cc:
                                         Subject:     FERC Conference on 
Market
                                         Monitoring- REVISED DRAFT





MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Joe Hartsoe, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketing Working Group Chair
            Julie Simon, Vice President of Policy

DATE: January 12, 2001

RE: FERC Conference on Market Monitoring in California
       ? Revised Draft
       ? Conference Call on Tuesday, January 16th, 2:00 p.m.
         (EST), 1-800-937-6563

Based on discussion at our last conference call and follow-up conversations
with some EPSA members, attached is a significantly revised list of Guiding
Principles on Market Monitoring for FERC's staff technical conference on
January 23rd to develop market monitoring procedures for the Cal ISO
markets.  The most significant change from the prior draft is that we now
delete any reference to specific price levels that would screen prices in
California and focuses instead why a price-based analysis for market
monitoring is inappropriate, since it fails to account for capacity costs,
opportunity costs and scarcity values.

FERC Staff has asked that EPSA be prepared to make a presentation at the
January 23rd conference, so it is important that we see if there is
consensus on this approach.  We will discuss this draft on a conference
call on Tuesday, January 16th at 2:00 p.m. (EST).  To access the call,
please dial 1-800-937-6563.  Ask for the Julie Simon/EPSA Call.  In the
meantime, if you have any questions, concerns or ideas about this effort,
please contact Julie at 202-789-7200 or jsimon@epsa.org before the call.


Attachment

(See attached file: MARKET MONITORING2.doc)
 - MARKET MONITORING2.doc