Gary is the Exec Director of the Western Power Trading Forum -- one of 
Enron's coalitions.  He is often quoted.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 03/01/2001 08:35 AM -----

	Gary Ackerman <foothill@lmi.net>
	03/01/2001 08:24 AM
	Please respond to foothill
		 
		 To: Bill Ross <billr@calpine.com>, Bob Anderson <Robert_Anderson@apses.com>, 
Carolyn Baker <cabaker@duke-energy.com>, CHARLES A MIESSNER 
<camiessn@newwestenergy.com>, Corby Gardin <jcgardin@newwestenergy.com>, curt 
hatton <curt.hatton@neg.pge.com>, Curtis Kebler 
<Curtis_L_Kebler@reliantenergy.com>, Denice Cazalet Purdum <dpurdum@apx.com>, 
Greg Blue <gtbl@dynegy.com>, Jack Pigott <jackp@calpine.com>, Janie Mollon 
<jsmollon@newwestenergy.com>, "Klemstine, Barbara A(F56661)" 
<barbara_klemstine@apses.com>, Nam Nguyen <Nam.Nguyen@powersrc.com>, Randy 
Hickok <rjhickok@duke-energy.com>, Rob Lamkin <rllamkin@seiworldwide.com>, 
Rob Nichol <rsnichol@newwestenergy.com>, robert berry <berry@apx.com>, Roger 
Pelote <roger.pelote@williams.com>, Sue Mara <smara@enron.com>, Jeff Crowe 
<jcrowe@apx.com>, George Vaughn <gavaughn@duke-energy.com>, Dan Douglass 
<douglass@arterhadden.com>, Dan Douglass <douglass@arterhadden.com>, Lynn 
Lednicky <LALE@dynegy.com>, "Richard H. Counihan" 
<counihan@greenmountain.com>, Sandra McDonough 
<Sandra.McDonough@neg.pge.com>, Dan Pigeon <Dan_Pigeon@transalta.com>, Lynn 
Fisher <lfisher@apx.com>, Karen Denne <kdenne@enron.com>, Richard Wheatley 
<richard_n_wheatley@reliantenergy.com>, Paula Hall-Collins 
<paula.hall-collins@williams.com>, Julie Gentz <julie.gentz@williams.com>, 
Kelly Swan <kelly.swan@williams.com>, Joe Ronan <joer@calpine.com>, Tom 
Williams <tcwillia@duke-energy.com>, Ed Mosey <efmosey@bpa.gov>, Mike Hansen 
<mshansen@bpa.gov>, Jan Mitchell <jan.mitchell@pacificorp.com>, Toni 
Amendolia <mozart@pwrteam.com>, Mark Stutz <mark.stutz@xcelenergy.com>, Steve 
Roalstad <steve.roalstad@xcelenergy.com>, John Sousa <joso@dynegy.com>, John 
Fistolera <johnf@ncpa.com>, Dace Udris <dudris@smud.org>, carol clawson 
<carol_clawson@fpl.com>, Al Parsons <alp@ncpa.com>, Bob Low 
<Bob_Low@transalta.com>, Bob Reilley <rreilley@coral-energy.com>, Brian 
Jobson <bjobson@smud.org>, Dave Nuttall <dn@ui.com>, Duane Nelsen 
<dnelsen@gwfpower.com>, Edmond Chang <echang@wapa.gov>, Elaine Walsh 
<Elaine@citizenspower.com>, Ken Lackey <Kenneth_Lackey@EdisonMission.com>, 
Linda Hamilton <lhamilton@avistaenergy.com>, Mark Tallman 
<mark.tallman@pacificorp.com>, "Richard H. Counihan" 
<counihan@greenmountain.com>, Sheryl Lambertson <sslambertson@pplmt.com>, 
Steve Ponder <steve_ponder@fpl.com>, Tom Breckon <tom@ncpa.com>, "Wolfe, Don 
- PGSO-5" <dvwolfe@bpa.gov>, John Marchand <jpmarchand@aep.com>, Mark Ward 
<mward@ladwp.com>, "Morrato, Joe" <Joe.Morrato@xemkt.com>
		 cc: 
		 Subject: Power producers accused of gouging


Folks,

Here is today's story.  John Howard of the OC REgister called me at 8:30
pm last night for the reaction.  As usual, I was totally off guard, but
the quote didn't fare badly.  I called my insider at the ISO, and she
(is that enough of a clue) told me that this report was discussed in
executive session, but not voted on by the Gov Bd.  The report will be
on the ISO's website today.  The real issue is DMA wants FERC to keep
open the 60-day window, and they are using a simple model (apparently so
described by the ISO in the report) to provide some evidence, however
simplistic, as to why FERC should listen.  Of course, this will do
nothing to help our image.  Get our media people ready.

gba

http://www.ocregister.com/news/california/newgouge00301cci.shtml

OCREGISTER.COM: California newsocregister.com/weather
[IMAGE]	[IMAGE]			Home PageToday's NewsArchivesAdvertisingAutomotiveBusiness & 
FinanceClassifiedColumnsCommunity NewsCrime, Courts & 
LawOCJobFinderEntertainment  & TravelFun & GamesHealth & FitnessHelpLiberty 
OnlineLiving & ShoppingPolitics & GovernmentReal EstateScience & 
TechnologySearchServices & PromotionsSports & RecreationWeatherYellow Pages
		[IMAGE]	Help	Search
[IMAGE]	[IMAGE]	[IMAGE]	[IMAGE]	[IMAGE]

Cox!


[IMAGE]
[IMAGE]
california  
[IMAGE]
Power producers accused of gouging 

ELECTRICITY: State's grid managers plan to ask federal officials today to 
order refunds of up to $562 million.

March 1, 2001




Related stories:
 Electricity notebook 

 Power penalties repeal expected 



By KIMBERLY KINDY, JOHN HOWARD and KATE BERRY
The Orange County Register 

Power producers overcharged Californians by more than a half-billion dollars 
for electricity over a two-month period, according to a study to be released 
today by the managers of the state's electricity grid.

During January alone, the cost of nearly two-thirds of all electricity 
purchased through the Independent System Operator was found to be 
"excessive," the ISO said. 

The ISO, the nonprofit agency responsible for buying and selling emergency 
power for the state, said it will ask federal officials today to order the 
power merchants to grant refunds.

The Federal Energy Regulatory Commission in December found "unjust and 
unreasonable" electricity pricing in California, but stopped short of 
ordering penalties or refunds. However, the ISO has detailed $562 million in 
specific excessive charges and is asking FERC to order refunds, disclose data 
about the market and investigate further.

Although California's energy market has been deregulated, FERC has wide 
latitude to set price caps if it believes rates are excessive. 

"We did some estimates, based upon the availability and other considerations, 
of what the electricity should have cost,'' said Anjali Sheffrin, the ISO's 
director of market analysis. "We found a big discrepancy."

Power producers said they would forgo extensive comment until the release of 
the study. However, Gary Ackerman of the Western Power Trading Forum, which 
represents buyers and sellers of energy, said, "The ISO has the right to ask 
for this review, (but) the costs were what they are. People were bidding at 
the market prices, which are legitimate costs in any electrical market in the 
nation."

Accusations of pricing misconduct have swirled around California's energy 
crisis, but the ISO's study and its filing with FERC today will represent the 
first time an agency has said it has evidence of overcharges and then taken 
action to get money returned.

It was unclear late Wednesday who would receive any refunds - the state, the 
utilities or individual ratepayers. 

The ISO's Department of Market Analysis alleges that price gouging occurred 
with as much as $247 million, or 21 percent, of the energy it bought in 
December and $315 million, or 63 percent, of the energy it bought in January.

Total energy costs for those two months were more than $11 billion, compared 
with $7 billion for all of 1999, Sheffrin said.

"This is a wonderful step for the ISO to take,'' said state Sen. Joe Dunn, 
D-Santa Ana, who is on a Senate committee hoping to restructure the 
electricity market to prevent market manipulation. "There have been many 
accusations, but none of them have chosen to act."

The new ISO study looked at power production, the prevailing market 
conditions and the demand for energy and found that the cost of emergency 
electricity was far higher than it should have been, Sheffrin said. Further 
details of the study are expected to be released today. 

Sheffrin said ISO officials have asked the power producers to supply 
information that would help them determine whether their estimates are 
accurate, but the requests have been denied. The power suppliers filed some 
of the documents to FERC, Sheffrin said.

During December and January, power producers had to provide FERC with monthly 
reports if their charges to the state exceeded thresholds. 

The ISO did not identify the power generators it accuses of improper pricing. 
Not including the utilities themselves, the major power suppliers in 
California are Reliant Energy Inc. of Houston, Duke Energy of Charlotte, 
N.C., Mirant Inc. of Atlanta, Dynegy Inc. of Houston and Calpine Corp. of San 
Jose.

Also on Wednesday, Bloomberg News reported that Gov. Gray Davis plans to ask 
power generators to accept partial payment for power sold to the state's 
cash-strapped utilities.


Email this to a friend.  	[IMAGE]	Yellow pages
		
		?HOME PAGE
		[IMAGE]
		?TODAY'S NEWS
		?Front Page
		?California
		?Nation
		?World
		[IMAGE]
		?ADVERTISING
		[IMAGE]
		?ARCHIVES
		[IMAGE]
		?AUTOMOTIVE
		[IMAGE]
		?BUSINESS & FINANCE
		[IMAGE]
		?OCJOBFINDER
		[IMAGE]
		?CLASSIFIEDS
		[IMAGE]
		?COLUMNS
		[IMAGE]
		?COMMUNITY NEWS
		[IMAGE]
		?CRIME, COURTS & LAW
		[IMAGE]
		?EDUCATION
		[IMAGE]
		?ENTERTAINMENT
		[IMAGE]
		?FUN & GAMES
		[IMAGE]
		?HEALTH & FITNESS
		[IMAGE]
		?LIVING & SHOPPING
		[IMAGE]
		?OPINION
		[IMAGE]
		?POLITICS &
		?GOVERNMENT
		[IMAGE]
		?REAL ESTATE
		[IMAGE]
		?SCIENCE &
		?TECHNOLOGY
		[IMAGE]
		?SERVICES &
		?PROMOTIONS
		[IMAGE]
		?SPORTS & RECREATION
		[IMAGE]
		?TRAVEL
		[IMAGE]
		?WEATHER
		
		
		
		The Orange County Register
		Copyright 2001 The Orange County Register
		Please send comments to ocregister@link.freedom.com