Harry,
I think the concern about the PX price disappearing remains.
We need to be able to calculate the price and the PX price is iffy.
Thoughts?



From: Harry Kingerski@ENRON on 01/25/2001 12:56 PM
To: JMB <JBennett@GMSSR.com>
cc: "Gordon Savage (E-mail)" <gsavage@enron.com>, "Harry Kingerski (E-mail)" 
<Harry.Kingerski@enron.com>, Jeff.Dasovich@enron.com, mulrich@enron.com, 
sstoness@enron.com, "'tjohnso8@enron.com'" <tjohnso8@enron.com> 
Subject: RE: FW: Letter re: PG&E Advice letter 2073-E  

Let's follow Jeanne's first option.  There is no longer anything to protest. 



	JMB <JBennett@GMSSR.com>
	01/25/2001 12:47 PM
		 
		 To: "'tjohnso8@enron.com'" <tjohnso8@enron.com>
		 cc: "Harry Kingerski (E-mail)" <Harry.Kingerski@enron.com>, "Gordon Savage 
(E-mail)" <gsavage@enron.com>, sstoness@enron.com, mulrich@enron.com, 
Jeff.Dasovich@enron.com
		 Subject: RE: FW: Letter re: PG&E Advice letter 2073-E

Tamara--

A couple of thoughts.  First, the reason why the Energy Division nixed
PG&E's advice filing had nothing to do with its proposal to price the
retained generation at the ISO ex post energy price, but rather with the
proposal contained therein to transfer the balances in its gen memo accounts
to its TCBA.  Thus, it is very possible that PG&E could turn around and
refile the advice letter, removing this element, and focusing solely on the
substitute pricing mechanism.  If they did that, we could protest at that
time.

The other option is that we could send a letter to the Commissioners,
advisors, and energy division stating our concern about the PX becoming a
dysfunctional market and not an adequate basis to develop the PX credit.



Jeanne      

-----Original Message-----
From: tjohnso8@enron.com [mailto:tjohnso8@enron.com]
Sent: Thursday, January 25, 2001 10:28 AM
To: JBennett@GMSSR.com
Cc: Harry Kingerski (E-mail); Gordon Savage (E-mail);
sstoness@enron.com; mulrich@enron.com; Jeff.Dasovich@enron.com
Subject: Re: FW: Letter re: PG&E Advice letter 2073-E
Importance: High



Jeanne,

I have some more background on the PX Credit issue that leads me to believe
that we should still comment on PG&E's Advice Letter.

The current PX credit calculation relies on the existence of a PX price
   The PX price does not consistently reflect market prices.
   Market prices are only reflected if:
     buyers and seller are willing to take on credit risk by transacting in
     the market
     the legalities of "who is liable for what" in case of default are
     unclear (according to a VP at EPMI), so the liquidity will not
     increase until there is certainty

From our perspective, the market value as posted on the PX is better for PX
credit calculations than a constrained ISO price.  (There is no
unconstrained ISO price available.)  Although -- it's a risk.

However, if the PX becomes so dysfunctional that prices, if any, do not
reflect real market pricing at all, the CPUC cannot delay dealing with this
issue because there will be no status quo for them to leave in place, there
will be a void.

I suggest that we support the CPUC decision to delay hearing the advice
letter with a big HOWEVER.  I think we should highlight the questionable
viability of a PX price and bring forward the requirement that the CPUC
must act if the PX becomes completely dysfunctional (we could ask Neil
Bresnan for help in defining "dysfunctional").

/Tamara.





JMB <JBennett@GMSSR.com> on 01/25/2001 10:54:38 AM

To:   "Tamara Johnson (E-mail)" <tjohnso8@enron.com>, "Harry Kingerski
      (E-mail)" <Harry.Kingerski@enron.com>, "Gordon Savage (E-mail)"
      <gsavage@enron.com>
cc:
Subject:  FW: Letter re: PG&E Advice letter 2073-E


Well, we do not have to worry about protesting PG&E's advice letter
changing
the PX credit. The Energy Division nixed it and told PG&E to take up the
issue in the rate stabilization proceedings.

Jeanne
-----Original Message-----
From: Avendano, Nel [mailto:NCO1@pge.com]
Sent: Wednesday, January 24, 2001 3:47 PM
To: 'jbushee@sablaw.com'; 'kmccrea@sablaw.com';
'rogerberliner@bcjlaw.com'; 'rcsstl@cdmnet.com';
'mbrubaker@consultbai.com'; 'anchau@shellus.com';
'keith-sappenfield@reliantenergy.com'; 'jsmollon@newwestenergy.com';
'jlyoung@sempra.com'; 'napedersen@jonesday.com';
'athomas@newenergy.com'; 'fchristi@arterhadden.com';
'kmcspadd@milbank.com'; 'hchoy@isd.co.la.ca.us'; 'lgurick@calpx.com';
'douglass@arterhadden.com'; 'randy_britt@mayco.com';
'frank.cooley@sce.com'; 'glwaas@calpx.com'; 'uwua@worker.com';
'fmo@sdcity.sannet.gov'; 'jleslie@luce.com'; 'julesan@aol.com';
'mshames@ucan.org'; 'jparrott@sempra.com'; 'kmelville@sempra.com';
'bill.mccallum@ci.fresno.ca.us'; 'btenney@landuselaw.com';
'ronknecht@aol.com'; 'furutanj@efawest.navfac.navy.mil';
'mdjoseph@adamsbroadwell.com'; 'rcosta@turn.org';
'bfinkelstein@turn.org'; 'theresa_mueller@ci.sf.ca.us';
'jjz@cpuc.ca.gov'; 'chrisw@greenlining.org'; 'joseh@lif.org';
'jnnc@chevron.com'; 'jlondon@gralegal.com'; 'imoosen@gralegal.com';
'phanschen@mofo.com'; 'epoole@adplaw.com'; 'rschmidt@bartlewells.com';
'chilen@llgm.com'; 'lys@aelaw.com'; 'jsqueri@gmssr.com';
'jbennett@gmssr.com'; 'bloomje@la.whitecase.com'; 'pbray@newpower.com';
'rick.counihan@greenmountain.com'; 'thoulihan@mdbe.com';
'mday@gmssr.com'; 'jmalkin@orrick.com'; 'edwardoneill@dwt.com';
'smoss@hooked.net'; Huffman, Mark (Law); Edwards, William (Law);
'ssmyers@worldnet.att.net'; 'pat.williams@dhcmail.com';
'wbooth@booth-law.com'; 'jerryl@abag.ca.gov'; 'mgomez1@bart.gov';
'askaff@energy-law-group.com'; 'hf@energy-law-group.com';
'pjpowerlaw@aol.com'; 'difellman@energy-law-group.com';
'nryan@environmentaldefense.org'; 'psly@ebmud.com';
'rrcollins@n-h-i.org'; 'patrickm@crossborderenergy.com';
'tomb@crossborderenergy.com'; 'brbarkovich@earthlink.net';
'pjmuller@ricochet.net'; 'pmcdonne@wenet.net'; 'berry@apx.com';
'sberlin@mccarthylaw.com'; 'scottst@mid.org'; 'cmkehrein@ems-ca.com';
'jweil@aglet.org'; 'abb@eslawfirm.com'; 'bpowers@seniors.org';
'dcarroll@dbsr.com'; 'dkk@eslawfirm.com'; 'ed@clfp.com';
'howens@seniors.org'; 'sgreenberg@realenergy.com'; 'smutny@iepa.com';
'lmh@eslawfirm.com'; 'jtachera@energy.state.ca.us';
'hodgesjl@pacbell.net'; 'rpernell@energy.state.ca.us';
'kmills@cfbf.com'; 'rliebert@cfbf.com'; 'aorchard@smud.org';
'mpa@aelaw.com'; 'jcpaine@stoel.com'; 'mhg@hetrading.com';
'dws@keywaycorp.com'; 'hbd@gweiss.com'; 'gerhordt.herbert@msdw.com';
'cread@steptoe.com'; 'jogg@jhenergy.com';
'peter_fox-penner@brattle.com'; 'sdefrawi@efaches.navfac.navy.mil';
'ad046@detroit.freenet.org'; 'bob_anderson@apses.com';
'gdreed@sidley.com'; 'robert.d.schasel@fritolay.com';
'georgeperrault@msn.com'; 'foxba@sce.com'; 'picketse@sce.com';
'jsilva@edisonenterprises.com'; 'LVanWagenen@sempra.com';
'jbarthrop@powersavers.com'; 'foothill@lmi.net';
'kpoole@adamsbroadwell.com'; 'fosterbc@sce.com'; 'ljhubbard@sempra.com';
'ktilton@gralegal.com'; 'paul.harris@bridge.com';
'oshirock@pacbell.net'; 'natutt@duanemorris.com'; Migocki, Joe;
'cafield@pirg.org'; 'derkp@newsdata.com'; 'luluw@newsdata.com';
'tom.oneill@abnamro.com'; 'mmattes@nossaman.com'; Peters, Roger (Law);
Lucha, Ed; Frazier-hampton, Janice; Kjellund, Niels; Helgens, Ronald;
'ConsumersFirst@worldnet.att.net'; 'normkr@aol.com'; 'gtbl@dynegy.com';
'joe.paul@dynegy.com'; 'honest@compuserve.com'; 'jyoung@ebmud.com';
'emitchel@angnewspapers.com'; 'rbw@mrwassoc.com'; 'dmarcus@slip.net';
'jeff@hmhresources.com'; 'ed@apx.com'; 'chrism@mid.org';
'fwmonier@tid.org'; 'rmccann@cal.net'; 'blaising@braunlegal.com';
'melanie_gillette@rmiinc.com'; 'twetzel@thermoecotek.com';
'Slayman@energy.state.ca.us'; 'jdh@eslawfirm.com'; 'ddavie@hesinet.com';
'karen@klindh.com'; 'cpeyton@sacbee.com'; 'thaines@smud.org';
'huse@eesconsulting.com'; 'mer@cpuc.ca.gov'; 'ang@cpuc.ca.gov';
'cmw@cpuc.ca.gov'; 'ctd@cpuc.ca.gov'; 'dlf@cpuc.ca.gov';
'fua@cpuc.ca.gov'; 'jlo@cpuc.ca.gov'; 'kok@cpuc.ca.gov';
'kth@cpuc.ca.gov'; 'kim@cpuc.ca.gov'; 'gig@cpuc.ca.gov';
'rtf@cpuc.ca.gov'; 'raw@cpuc.ca.gov'; 'sfc@cpuc.ca.gov';
'car@cpuc.ca.gov'; 'ztc@cpuc.ca.gov'; 'nevillm@hdcdojnet.state.ca.us';
'dwrlegal1@water.ca.gov'; 'ath@cpuc.ca.gov';
'LKristov@energy.state.ca.us'; 'randy.chinn@senate.ca.gov';
'rtavares@energy.state.ca.us'; 'mschwebs@energy.state.ca.us'
Cc: Shaw, Susan
Subject: Letter re: PG&E Advice letter 2073-E


Today the attached letter was received by PG&E from Paul Clanon, Director,
Energy Division, pertaining to Advice 2073-E, filed January 18, 2001. (cc:
Service List - A. 00-11-056)

 <<Letter_PGE_AL_2073-E.doc>>



Thank You,
Nel Avendano (nco1@pge.com)
Rates (415-973-3529)



(See attached file: Letter_PGE_AL_2073-E.doc)