You got it.  I'll put my thinking cap on and start pondering.

Best,
Jeff



	James D Steffes
	04/11/2001 05:51 PM
		 
		 To: hahnr@erols.com
		 cc: Richard Shapiro/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Steven J 
Kean/NA/Enron@Enron, Tom Briggs/NA/Enron@Enron, Rob Bradley/Corp/Enron@ENRON, 
Margaret Carson/Corp/Enron@ENRON, tabors@tca-us.com, Jeff 
Dasovich/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Christi L 
Nicolay/HOU/ECT@ECT
		 Subject: QUANTIFICATION OF BENEFITS OF OPEN ACCESS ON ELECTRIC TRANSMISSION 
NETWORK

In discussions with the Administration, it has become clear that there would 
be great political value in being able to  demonstrate (a) the economic value 
of open access for the US and (b) the impact open access would have on the 
current energy crisis.

Enron has developed historical analysis of the impact of deregulation on 
natural gas.  Margaret Carson is putting together some slides that show (1) 
throughput improvements, (2) expansion in pipeline capacity, and (3) cost 
reductions in the industry.  While not exactly identical, there are some good 
reasons to assume that the same would occur in the electricity industry.

It would be great if you could develop a general qualitative framework that 
would outline why open access is preferable in the very short-term and work 
on a larger quantitative framework over the medium-term.

To that end, Richard Tabors of TCA had earlier analyzed the economic loss 
from AEP's abuse of its transmission network last year.  He may have 
additional insights into developing this concept.

Please call me with further questions at 713-853-7673.

Jim Steffes