Jean & Thane --

Can we have a meeting this week (maybe Thursday at 3:30) to discuss this?

Jim

 -----Original Message-----
From: 	Ryall, Jean  
Sent:	Wednesday, August 01, 2001 10:21 AM
To:	Steffes, James D.
Cc:	Twiggs, Thane; Gilbert-smith, Doug; Shapiro, Richard
Subject:	Re: ERCOT - Problems with the New Market

We do need a formal plan.  We have been working closely together to identify the issues as they develop and propose solutions. Doug has been providing us with the necessary specific market information.  We have been successful in communicating that information to the new commissioners and Ercot and seeking resolution. The commission is definitely more responsive to market participants that are articulating the issue, providing specific examples and proposing the solution.  Grand-standing is ignored.  Those who show up with complaints but cannot point to specifics are virtually ignored.  Those who show up and complain, but are not participating in the working groups and the daily Ercot phone calls, board meetings, etc. are ignored.   

Doug and I met with the Chairman of PUCT and have had subsequent conversations.  Thane and I also visited with him. 

Pat Wood made a phone call to Tom Noel and told him to get the Texas market fixed.  (Even though he has bigger things to do in D.C., this is his legacy and he recognizes that if deregulation does not work in Texas, the repercussions could be global.)  

Chairman Sibley and Chairman Wolens (of the Texas legislature) are also engaged in market developments.  We have been working with the State Affairs legislative committee and keeping them apprised.  There is an Electric Restructuring Committee hearing scheduled for September 6th or 7th.  The forum is expected to be invited testimony only.  Those currently listed as invitees are PUCT Commissioners and Ercot's Sam Jones and Tom Noel.  The hearing is focused on the pilot and we have an opportunity to provide some probing questions for Wolens to direct to Sam and Tom.  Now that Sibley is not a candidate for Lt. Governor, there is more freedom to open up and ask some difficult questions.   

Thane is in Austin on Friday, but is available by phone.  I will be on a plane to Houston at 8:00 a.m. Can we find another time that works for us to meet? Thane is in an Ercot PRS meeting Friday from 9:30 until 3:00.  I am available after Rick's Friday budget meeting...are you available then?  You are right, we do need a formal plan, Thane has started an initial draft.  Thanks, Jean    




From:	James D Steffes/ENRON@enronXgate on 08/01/2001 06:52 AM
To:	Jean Ryall/NA/Enron@ENRON, Thane Twiggs/ENRON@enronXgate
cc:	Doug Gilbert-Smith/ENRON@enronXgate, Richard Shapiro/ENRON@enronXgate 

Subject:	ERCOT - Problems with the New Market

Jean & Thane --

Walking out last night, Kevin Presto indicated that there were games being played in ERCOT with the new market rules and prices in certain markets were not reflective of working markets.  

Enron needs to use this situation to quickly get our viewpoints up into the PUCT and ERCOT ISO on what is driving these problems and our proposed fixes.  

If ERCOT goes the way of California - either due to market power or poor market design rules - it will be a bad day for deregulation and for Pat Wood.  As important, the new PUCT Commissioners need some help right now in messaging the market.  Let's get them to support constructive solutions that will make a real difference.

Jean and Thane, I think that we need a FORMAL PLAN on what to do over the next 3 - 6 months to leverage this situation.  I would like to discuss this with you on Friday am.  I am free at 8am on Friday before Rick's budget meeting.

Jim