Christi --

Let's talk.  

We are arguing against NERC, but Kevin needs to understand that something must be in its place. We have a policy that we are supporting - giving reliability to FERC - and that is Enron's approach.  Have you communicated that to Kevin?  

Also, on RPS and energy source reporting, I agree but this may be a part of the final package.  Also, the language I read allows the FTC to construct a process that makes it possible to not use day ahead markets.

Jim

 -----Original Message-----
From: 	Nicolay, Christi L.  
Sent:	Thursday, September 13, 2001 8:45 AM
To:	Shelk, John
Cc:	Yeung, Charles; Rodriquez, Andy; Steffes, James D.; Robertson, Linda; Shapiro, Richard; Herndon, Rogers; Black, Don; Novosel, Sarah; Shortridge, Pat; Guerrero, Janel
Subject:	Kevin Presto comments on the summary of Bingaman bill

John -- Kevin Presto, head of East Power Trading, had these comments:

Under Title IV Electric Reliability Standards -- Kevin says, "NERC should be eliminated."

Under Title V Subtitle B Environmental Disclosure: -- Kevin says that the "uniform reporting to consumers, in monthly electric bills, of the known energy sources" is not good because it supports day-ahead source requirements for retail suppliers.  Enron advocates the ability of customers to choose how to source their portfolio, whether from bilateral contracts done on an ahead basis or purchases in the spot market.  

John, the renewable portfolio standard provisions later in the draft bill may alleviate this concern, but I don't know enough about how that works.  Several years ago credits were discussed as credits that accrued to the clean energy generator and it can trade those credits.  Therefore, the seller of clean energy to endusers would need to have a certain amount of clean credits in order to claim it sold clean energy (meaning that the clean generator was supported by the marketplace since sellers needed a certain amount of credits).  That program recognized that you can't specifically source a clean generator to a load because electricity doesn't flow that way.  Thus, portfolio sourcing could continue and clean energy is supported.  But I don't know how this bill's provisions would work.  You probably have the Enron experts on this (used to be Janel G.)  Thanks.