Rick, Jim and Steve:

Please find attached a revise doutline for the policy paper on RTO
development.

A few things to note (to make sure you are truly OK with it):

- the "base model" described will basically be a "PJM Light" with
energy-only bids. This will involve a centralized unit commitment process
(based on a constrained optimization) and financial transmission rights. All
other items on the "wish list" will be treated as future potential
developments.

- there will a substantial section on market power issues and RTO
development.

- there will a section on the relationship between wholesale and retail
market development. The main idea is that a "wholesale only" market without
price signals sent to customers is not going to be viable.

- the main conclusion section will center on a "100 days" (not literally 100
days) set of policy proposals for getting workable markets established
across the country ASAP.

Comments welcome.


Seabron




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-----Original Message-----
From: James.D.Steffes@enron.com [mailto:James.D.Steffes@enron.com]
Sent: Monday, March 19, 2001 10:22 PM
To: Steven.J.Kean@enron.com; Seabron Adamson; Richard.Shapiro@enron.com
Subject: new draft





Seabron --

Here is a paper Brattle is putting together for Enron in Japan. ?See
Section 5 - A Japanese Pool. ?They make several good arguments as to why a
mandatory pool with financial settlements around the pool is key for
Japanese liberalization. ? Maybe steal some of their ideas for our US
policy arguments.

Jim



----- Forwarded by James D Steffes/NA/Enron on 03/19/2001 01:04 PM -----
|------------------------+------------------------+------------------------|
|                        |   Mark Schroeder@ECT   |                        |
|                        |                        |   ? ? ? ? To:          |
|                        |   03/19/2001 05:25 AM  |   James D              |
|                        |                        |   Steffes/NA/Enron@Enro|
|                        |                        |   n                    |
|                        |                        |   ? ? ? ? cc:          |
|                        |                        |   Mark                 |
|                        |                        |   Crowther/AP/Enron@Enr|
|                        |                        |   on, Steven J         |
|                        |                        |   Kean/NA/Enron@Enron, |
|                        |                        |   Nicholas             |
|                        |                        |   O'Day/AP/Enron@Enron |
|                        |                        |   ? ? ? ? Subject:     |
|                        |                        |   new draft            |
|------------------------+------------------------+------------------------|



Jim - this is what we discussed in Houston last week, i.e., a proposal for
a market in Japan. ?Any thoughts would be appreciated, I am sure, by Mark
Crowther and Nick O'Day. ? thanks ?mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 19/03/2001
11:28 ---------------------------

To: ? ? ? ?"Mark Crowther" <Mark.Crowther@enron.com>
cc: ? ? ? ?"Mark Schroeder" <Mark.Schroeder@enron.com>, "Peter Styles"
<Peter.Styles@enron.com>, "Paul Dawson" <Paul.Dawson@enron.com>,
<Nicholas.O'Day@enron.com>

Subject: ? ? ? ?new draft



Mark: please find attached the new draft. As we ?discussed this morning, we
still need to add some details (cites etc) that you ?will send us, and also
add additional local examples which you will ?identify.

I would like to spend a few more hours going over ?the appendices, so will
send them to you on Monday. Look forward to getting your ?thoughts, and
hopefully to seeing you over here in April.
Regards,
Boaz




 - 01-03-30 SA Revised outline for policy paper.doc