Scott:

Thanks again for giving Ray and I a tour of your Market Observation Center on Monday

Attached are the figures I presented on Monday at the technical conference.  They will be filed with the Commission shortly.  I am sending them to you today, however,  in the hope that either your staff or the external auditor could look at this ATC issue as soon as possible.

To recap our issue: The amount of transmission capability available for day-ahead cash markets dropped precipitously in 2001 for no apparent reason such as transmission de-rates.  The reason we have been told informally by CAISO  is that NP15-to-COB ATC (i.e., COB S-N) was reduced to improve capability on Path 15 S-N (i.e. congestion between SP15 and NP15). However, the only reason we could find to explain such a drop was the CAISO's effort to hold resources in NP15 to reduce the NP15 spot market price.  This is an admirable goal but such a goal cannot be acheive via arbitrary transmission derates.  Put another way, acheiving an economic goal in NP15 should not come at the expense of load in the PNW.

The .zip file contains all the data that was used to prepare the charts and includes explanatory notes on how we computed the ATC value after CAISO revised their OASIS site beginning mid-2001.

Either Ray or I will call you in the next week to see if you were able to view this data and understand it.

Again thank you for your help.

Alan Comnes
Enron Corporation