Typically the traders are not interested in changes to the TAC because it is 
paid by the end-user not by us.  However, EES folks (Dennis Benevides, Neil 
Bresnan, and Jubron Whelan) are usually interested and you can copy the 
traders with an FYI if you want to.  You have probably discovered all this 
already.




Alan Comnes
01/03/2001 08:55 AM
To: Roger Yang/SFO/EES@EES@ENRON
cc: Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Mary 
Hain/HOU/ECT@ECT, Tamara Johnson/HOU/EES@EES@ENRON 
Subject: Re: CAISO Notification - Transmission Access Charge Implementation - 
Addition of City of Vernon as PTO  

Roger,

I did a brief summary of this last week which I will copy below.

I do not have any sense of whether the proposed change will be accepted, 
accepted subject to refund, or suspended by FERC.

If you need any detail, I think you will find it in one of the ISO's 
attachments to their filing (the .xls file) which is at www.caiso.com/ferc 
filings.

Cheers,

Alan Comnes

Earlier Email:


Here is another hefty ISO  filing that came in this week.  Please let Sue or 
I know if you believe we should intervene/protest.


Alan Comnes

Summary of ISO Amendment 34:

Filed: December 28

Effective Date: 1/1/01 (expedited treatment requested)

Protests Due: January 17? (need to confirm this)

Filing in a Nutshell: The ISO states that the purpose of the amendment is to 
clarify certain issues associated with implementation of the new transmission 
Access Charge methodology it orginally proposed in Amendment No. 27. 
(According to the ISO, Amendment 27 has been accepted for filing, suspended, 
and set for hearing.  Settlement negotiations are ongoing.  (Is Enron a party 
to these settlements?)) In addition, the ISO provides new transmission Access 
Charge (TAC) rates that will be in effect if the Commission approves the City 
of Vernon joining the ISO effective January 1, 2001 and the amount of Firm 
Transmission Rights that will be given to Vernon in accordance with the ISO 
Tariff.

Specific Proposed Changes

Clarification of Wheeling Access Charge Quantity

The ISO proposes that these provisions be clarified to specify that in the 
determination of the Wheeling Access Charge, the proper calculation is to use 
transmission facility ownership and Entitlements less all Encumbrances.  
Encumbrances include transmission used to meet demands of existing 
contracts.  This is how the ISO is currently calculating this charge and the 
ISO appears to be using this filing to codify this method.

New HV TAC Rates Using Year-1 of the ISO,s Proposed Transmission Methodology

The current Access Charge methodology consists of three separate zone rates 
based on the Transmission Revenue Requirement of the Original Participating 
TO.  Because each zone corresponds to the service territory of the TO, they 
are known as &license plate8 rates.  Under Amendment No. 27, this methodology 
continues in effect until a New Participating TO joins the ISO.  Once that 
occurs, the Access Charge for High Voltage Transmission Facilities will be 
assessed based on the combined High Voltage Transmission Revenue Requirements 
of all the Participating TOs in each TAC Area.

The filing claims to implement an already-approved transition formula wherein 
new members of the ISO will pay a rate that is a mix license place and system 
average embedded costs.  The goal is that after 10 years there will be only 1 
high voltage access charge. The following table shows that under the current 
method, which would be a 90/10 split of license-plate/system-average charges, 
PG&E and SCE TO access charges would rise approximately $3.2 million and 
Vernon would be subsidized approximately $7 million.

Calculation of the net (benefits)/burdens from Access Charge and GMC Impact.  
 PG&E and SCE have a $32 Million cap annually and 
SDG&E has a $8 Million cap annually; Vernon is held harmless; I
OUs pay muni cost increases in proportion to their cap relative to the total 
cap.	Adjusted
	Net
	(Benefit)/
	Burden
	($1000)
	[37]
PG&E	$3,283 
SCE	$3,283 
SDG&E	$821 
Vernon	($7,051)
  Total	$336 
	
	
	Note: a positive number means the TAC is going up.  A negative number means 
the TAC is going down (or will be lower than would be the case under 100% 
license plate ratemaking)


Vernon,s Existing Transmission Rights Converted to FTRs

Veron, by joining the ISO effective 1/1/01, agrees to convert existing 
transmission rights to FTRs of presumably an equivalent amount.  The proposed 
FTRs to allocate to Vernon are in the filing.  These FTRs will expire when 
the underlying contract right expires or 10 years, whichever is sooner.

End of Summary







Roger Yang@EES
01/03/2001 08:35 AM
To: Susan J Mara/NA/Enron@ENRON
cc: Jeff Dasovich/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT@ENRON, Alan 
Comnes/PDX/ECT@ECT@ENRON, Tamara Johnson/HOU/EES@EES 

Subject: Re: CAISO Notification - Transmission Access Charge Implementation - 
Addition of City of Vernon as PTO  

Can you get us what the estimated revenue requirement cost shifting will be 
to SCE, PG&E, and SDG&E?  I know it is not much, but we need to build this 
amount into our transmission curves for these utilities.

Roger

 



Susan J Mara@ENRON
01/02/2001 07:42 PM
To: Roger Yang/SFO/EES@EES
cc: Jeff Dasovich/NA/Enron@Enron, Mary Hain/HOU/ECT@ECT, Alan 
Comnes/PDX/ECT@ECT 
Subject: CAISO Notification - Transmission Access Charge Implementation - 
Addition of City of Vernon as PTO

i thought that Vernon had opposed some of FERC's order on joining, but 
according to this ISO e-mail,, it looks as if Vernon is now a PTO.  PG&E = 
the northern TAC, SCE = Central, and SDG&E = Southern.  I don't recall seeing 
any filings for the "Low Voltage" rates.  I'll have to let you know on those.
----- Forwarded by Susan J Mara/NA/Enron on 01/02/2001 07:35 PM -----

	CRCommunications <CRCommunications@caiso.com>
	01/02/2001 05:48 PM
		 
		 To: ISO Market Participants 
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI
CIPANTS@caiso.com>
		 cc: ISO Client Relations <ISOClientRelations@caiso.com>, SC Settlements 
Contacts 
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=SCSETTLECONTACTS@cai
so.com>, "Kazerooni, Hamid" <HKazerooni@caiso.com>, "Gerber, Spence" 
<SGerber@caiso.com>, "Le Vine, Debi" <DLeVine@caiso.com>, "Bouillon, Brad" 
<BBouillon@caiso.com>, "Shafa, Masoud" <MShafa@caiso.com>, "Ng, Chi-Pui" 
<CNg@caiso.com>
		 Subject: CAISO Notification - Transmission Access Charge Implementation - 
Addition of City of Vernon as PTO


Market Participants:
As of January 1, 2001, the City of Vernon has joined the CAISO as a
Participating Transmission Owner (PTO) under the CAISO Tariff and
Transmission Control Agreement (TCA).

According to Amendment 27 of the ISO Tariff, there are three TAC areas:
Northern TAC Area, Eastern/Central TAC Area, and Southern TAC Area.

The following TAC Area rates for the use of the High Voltage Transmission
Facilities are in effect starting January 1, 2001.


TAC Area High Voltage Access Charge
(TAC Area + ISO-wide)

North 1.41 $/MWH
East/Central 2.04 $/MWH
South 1.99 $/MWH

The Low Voltage Access Charge is defined in each PTO's TO Tariff.

 <<TAC Overview.doc>>


CRCommunications
Client Relations Communications

 - TAC Overview.doc