Alan,

This is a very valid question and one which was asked by Steve Hall about 6 weeks ago.  We have been working with the ISO the get the following information.

Based on the latest information provided by the ISO Client Reps.  Enron would be eligible for receiving part of the Allocation.  There were some questions regarding this in the past because, the tariff was written in our favor to receive part of this allocation but the Settlement documentation by the ISO did not represent the same.

Per John Gooden at the ISO

The CT 1480 is used to allocate the revenues received by the ISO through CT 480.  Such revenues will be allocated to the SCs with a positive Uninstructed Demand Deviation and to those with a negative Uninstructed Demand Deviation with a magnitude less than or equal to 5% of the metered Demand.  These SCs will receive revenues based on the ratio of each SC's metered demand to the sum of all such SCs metered demand in the control area.

Chris Stokley has placed a request with the ISO to provide us with information indicating how much of this has been allocated to Enron.  If they are truly calculating this today they should not have any problems providing this information.

If you have any additional questions please let me know.

Thanks - MO


 -----Original Message-----
From: 	Comnes, Alan  
Sent:	Wednesday, June 27, 2001 2:56 PM
To:	Steffes, James; Alvarez, Ray
Cc:	Hall, Steve C.; Mara, Susan; Perrino, Dave; O'Neil, Murray P.; Belden, Tim
Subject:	Underscheduling Penalty--CONFIDENTIAL

The Calif. EOB has released information on the size of the FERC-approved, tracked, but-as-yet-unimplemented underscheduling penalty.

See the attached PDF file, especially the figures in the attachment at the end.

The total liability for PG&E and SCE is approaching $1billion. (EOB says that DWR is off the hook but I am not sure that is true.)

As a generally balanced SC, Enron would likely be eligible for some of these proceeds.  How the proceeds would be allocated is less than fully clear.  MURRAY O'NEIL: Have you seen anything on who would receive the revenues from this tracking A/C if it were to be billed and paid?)

Also the probability of ever extracting these $s out of noncreditworthy counter parties must be taken into account.

Alan Comnes

 << File: EOB Request for Rehearing June 14.pdf >>