---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/18/2000 
05:14 PM ---------------------------


"Shmuel Oren" <OREN@IEOR.Berkeley.edu> on 10/04/2000 06:57:32 PM
To: <Vince.J.Kaminski@enron.com>, <vkaminski@aol.com>
cc:  
Subject: Re: Abstract


Thanks
Vince. This is good but I also need a title. It would be good if you can as
part of the talk present an example of a technical problem addressed by your
group describing the problem and the general methodology employed or
developed. You can also start with an introduction about your organization
and the program.
Shmuel
/////////////////////////////////////////////////////////
Shmuel S. Oren, Professor
Dept. of Industrial Engineering
        and Operations Research
4117 Etcheverry Hall
University of California
Berkeley, CA 94720-1777
e-mail: oren@ieor.berkeley.edu
phone: (510) 642-1836 or 5484
Fax:      (510) 642-1403
///////////////////////////////////////////////////////////

----- Original Message -----
From: <Vince.J.Kaminski@enron.com>
To: <shmuel@euler.me.berkeley.edu>
Cc: <Vince.J.Kaminski@enron.com>; <vkaminski@aol.com>
Sent: Monday, October 02, 2000 6:44 AM
Subject: Abstract


> Shmuel,
>
> This is the abstract  for  my presentation on the 23rd of October.
> I am in London and Paris this week. I can be reached at my
> private E-mail address vkaminski@aol.com.
>
> Please, feel free to suggest modifications to the abstract.
>
>
>
> Vince
>
>
> ******************************************************************
>
> > The last three years were characterized by exceptionally high volatility
> of
> > the power prices in the US markets. The market developments have created
> a
> > number of unique challenges for energy industry economists. One
immediate
> > question we have to answer is how to measure volatility of energy
prices.
> > Although we can all agree that the prices in the power markets are
> > characterized by high variability, the traditional measures used in
> financial
> > economics (annualized standard deviation of log price returns) may not
> fit
> > well electricity prices. The second challenge is to explain the sources
> of
> > high price volatility and to answer the question to what extent it can
be
> > attributed to problems that can be addressed in the long run. Such
> problems
> > include flaws in market design that allow some market participants to
> abuse
> > market power, limited availability and/or unequal access to
transmission,
> > temporary shortages of generation capacity. Some factors underlying high
> > volatility of electricity prices may be of permanent nature and may be a
> > necessary price to pay for increased market efficiency and expanded
> customer
> > choice.
>
>