Craig has done an extensive analytic paper for EPSA on price caps generally, 
with a specific focus on California.  The paper is on our website 
(www.epsa.org) titled an Initial Analysis of Recent Wholesale Price, Price 
Caps and Their Effect on Competitive Bulk Power Markets.  If anyone needs a 
copy, let us know.  He also spoke for EPSA at the January FERC conference on 
market monitoring.

Julie Simon
Vice President of Policy
Electric Power Supply Association
jsimon@epsa.org

>>> "Katie Kaplan" <kaplan@iepa.com> 03/16/01 03:30PM >>>
Greetings:
Yesterday at the ISO several of us were successful in communicating the need
for a more diverse "Market Repair Team" that would include perhaps some
additional members and a "Stakeholder Advisory Committee".  We were also
successful in communicating our cost-benefit analysis and delaying the
immediate adoption of the team. The motion (approved 5-0) read:

Board of Governors Market Repair Team
MOVED, that the Board approve the concept of a Market Repair Team along the
lines described in the Florio memorandum of March 14, 2001, and directs ISO
management to provide a response to the proposal addressing among other
issues, issues of cost/ benefit, conflicts of interest, team composition at
the next Board meeting.

IEP, CMUA, SMUD, and Grid Services were all asked to submit some proposed
names by today to the ISO Management, please see below e-mail from Elaina:

Today during the Public Comment, you all indicated that you might have names
as potential members of the Advisory Group for the Market Repair Team.  It
is not clear at this point how the whole process will be structured, but we
have been asked to put together a proposed game plan including names for
potential members of the Advisory Group.  Please send them to me ask quickly
as you can:  Friday pm is what Chairman Kahn asked for.

We would like to be as responsive as possible to the request and have
thought of the idea of proposing someone that EPSA uses in a variety of
roles.  CMUA will also probably be proposing someone from their national
organization.  The name that has been suggested for IEP to submit is Craig
Roach of Boston Pacific consulting who has done extensive work for EPSA in
supporting a competitive market policy. There is more information on Dr.
Roach and Boston Consulting on their web site www.bostonpacific.com.  I
spoke with Julie Simon at EPSA this morning and she also gave him an
enthusiastic endorsement.

Another idea or an additional person to submit  would be an economist that
is involved heavily in California.  Since both Hogan and Joskow have
financial ties to market participants we may want to consider proposing our
own economist.  It is the plan to submit both names to the ISO as well as a
letter addressing the following:


1. Raise very gently the issue of potential conflict of interest, coupled
with cost/benefit analysis etc
2. Address structural issues, including how stakeholders will participate.
3. Propose more diversity for the Market Repair Team,
4. Propose a Stakeholder Advisory Group as a third box, and include
stakeholders, including a regional perspective like neighboring control
areas, and folks with operational and market experience



It is crucial that if this plan sends up any red flags for you that you get
back to me ASAP.  I will be sending this letter to the ISO this afternoon
after we get the logistics worked out.  IF you have problems with this
direction please supply additional names we can route with the group.  I
have talked to a few companies that were at the meeting yesterday and they
are comfortable but wanted to make sure everyone had a say.



Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499