I'd like to expand on the last point.  The Market Monitoring Committee (MMC) 
should not make findings, it should simply refer the information it gets to 
FERC about abuse of market power and violations of antitrust and if should 
report that information subject to confidentiality.  Also, if contrary to our 
wishes, the FERC allows market monitoring committees to further investigate, 
make findings, and impose penalties, FERC must require the tariffs to contain 
detailed due process requirements that: (1) specifically name the behavior 
that is illegal and relate any penalties to specific violations, (2) require 
the MMC to notify the party being invested of the tariff or law that may have 
been violated, (3) allow the party being investigated to perform discovery on 
any other party (including the ISO or the PX) that may instead be at fault or 
may be a contributing party, (4) to facilitate this discovery, allow a party 
to know the identity of the party (if any) that alerted the MMC to the 
alleged violation, and (5) detail the process for any discovery, hearing, or 
ADR process to ensure the party being investigated has adequate notice and 
opportunity to be heard and to impute others who may instead be at fault.


   
	Enron Capital & Trade Resources Corp.
	
	From:  "Jackie Gallagher" <JGallagher@epsa.org>                           
01/12/2001 09:14 AM
	

To: <bhawkin@enron.com>, <bmerola@enron.com>, <christi.l.nicolay@enron.com>, 
<donna.fulton@enron.com>, <janelle.scheuer@enron.com>, 
<jeff_brown@enron.com>, <jhartso@enron.com>, <Mary.Hain@enron.com>, 
<sarah.novosel@enron.com>, <tom.hoatson@enron.com>
cc:  
Subject: FERC Conference on Market Monitoring- REVISED DRAFT


MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Joe Hartsoe, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketing Working Group Chair
            Julie Simon, Vice President of Policy

DATE: January 12, 2001

RE: FERC Conference on Market Monitoring in California
       ? Revised Draft
       ? Conference Call on Tuesday, January 16th, 2:00 p.m.
         (EST), 1-800-937-6563

Based on discussion at our last conference call and follow-up conversations 
with some EPSA members, attached is a significantly revised list of Guiding 
Principles on Market Monitoring for FERC's staff technical conference on 
January 23rd to develop market monitoring procedures for the Cal ISO 
markets.  The most significant change from the prior draft is that we now 
delete any reference to specific price levels that would screen prices in 
California and focuses instead why a price-based analysis for market 
monitoring is inappropriate, since it fails to account for capacity costs, 
opportunity costs and scarcity values.

FERC Staff has asked that EPSA be prepared to make a presentation at the 
January 23rd conference, so it is important that we see if there is consensus 
on this approach.  We will discuss this draft on a conference call on 
Tuesday, January 16th at 2:00 p.m. (EST).  To access the call, please dial 
1-800-937-6563.  Ask for the Julie Simon/EPSA Call.  In the meantime, if you 
have any questions, concerns or ideas about this effort, please contact Julie 
at 202-789-7200 or jsimon@epsa.org before the call.


Attachment

 - MARKET MONITORING2.doc