I recognise that I am new to the debate.  However, my concern about focusing 
on open access terms is that non-discrimiantory access deals primarily with 
competitive issues.  It does nothing to directly address the lack of 
transmission capacity and generating capacity.  I'm not certain what path 15 
information is, and I presume FTRs are Firm Trading/Transmission rights, but 
these deal with use of existing capacity and has nothing to do with 
incentives to expand capacity to meet demand.  Presumable, market 
participants would use access to existing capacity to take advantage of the 
high prices being experienced in the california market, which seems to be 
caused by a combination of a lack of capacity and odd trading rules that work 
to exacerbate prices in times of shortages.

However, we could argue that competitive access is related to the incentives 
of incumbent generators to keep new suppliers from entereing the market.  I 
think I have a way to ask a follow-up question that will address this point.

I will send a revised draft soon.




Mary Hain@ECT
04/10/2000 10:34
To: Sarah Novosel/Corp/Enron@ENRON, Susan J Mara/SFO/EES@EES, 
jdasovic@ees.enron.com
cc: Tom Briggs/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Cynthia 
Sandherr/Corp/Enron@ENRON, Christi L Nicolay/HOU/ECT@ECT, 
dbva@radix.net@ENRON 

Subject: Re: Draft Questions for Hoecker  

I disagree with you about question 2.  While I agree that transmission acess 
wasn't the number one problem in California this summer, transmission access 
is not close to being perfect in California (for example PG&E controls the 
information about path 15 and the ISO still has not auctioned off 100 percent 
of the FTRs in the market) and certainly corrections to these problems would 
make the market more liquid which would help to alleviate the price spike 
problem.  So even though access is not the number one or even the number two 
problem causing price spikes this summer it contributed and it is one of the 
biggest problems with the California market, relatively, and it is something 
that FERC can fix (as compared to fixing hedging and underscheduling which 
they seem content to leave to the state regulators).  Perhaps Tom could fix 
his question accordingly.



Sarah Novosel@ENRON
10/04/2000 07:41 AM
To: Tom Briggs/NA/Enron@Enron
cc: Richard Shapiro/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT, Cynthia 
Sandherr/Corp/Enron@ENRON, Christi L Nicolay/HOU/ECT@ECT, dbva@radix.net 
Subject: Re: Draft Questions for Hoecker  

Tom:

The questions look good, and I agree with Rick's comments regarding RTO 
participation.  We should try and pin Hoecker down on the problems with the 
voluntary approach.  I have a couple of additional thoughts on the questions:

In question two, you should also ask Hoecker directly about the time it takes 
to interconnect.  The interconnection process can take a long time due to 
utility holdups that are not necessary.  I would ask something like, "What is 
the length of time it typically takes to interconnect a generator to the grid 
once the generator makes the request for interconnection?  Can FERC take 
action to shortened this time to help accelerate the development and 
operation of new generation in California and elsewhere throughout the 
country?"

On question three, you have asked me in the past whether open access for all 
uses of the grid would have helped California this summer, and as we have 
discussed, while it may have helped, lack of transmission access was probably 
not the primary cause for the problems in California this summer.  Given 
that, could this question backfire on us?  What if Hoecker says no, expanding 
FERC jurisdiction wouldn't have had much impact on California this summer?  

Finally, you may want to send these questions to some of our other California 
people, including Jeff Dasovich, Sue Mara and Mona Petrochko, to make sure 
that the facts stated in Question No. 1 are accurate.

Let me know if you have any questions.

Sarah





Tom Briggs
10/03/2000 02:48 PM
To: Richard Shapiro/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT, Cynthia 
Sandherr/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Christi L 
Nicolay/HOU/ECT@ECT
cc:  

Subject: Draft Questions for Hoecker

Attached please find draft questions to be provided to Sen. Gorton for his 
hearing on NW price spikes to be held Thursday. I hve tried to design 
questions that focus on FERC jurisdiction.  However, i may have med the 
questions too specific and detailed.  please give me your comments and ideas.