> -----Original Message-----
> From: Michael Heinrich
> Sent: Monday, March 12, 2001 4:17 PM
> To: Jacqlynn Wu
> Subject: Adjustment Bid Market Update
>
>  <<...>>
>
> 5201 Great America Parkway, Suite 522
> Santa Clara, CA 95054
> 408 517-2100
> 408 517-2985 fax
>
>
> March 12, 2001
>
>
> Dear Colleague,
>
> Thank you for your participation and support in resolving our problems
> this summer regarding congestion management in the California market.  As
> we have indicated, we believe that this problem is costing us millions of
> dollars today and continued pro rata schedule cuts as a method of
> congestion management will continue to reduce energy supply this summer
> and escalate substantially to well over $100,000,000 in replacement energy
> costs.
>
> As you suggested, we presented our solution of operating an adjustment bid
> market to manage congestion to the CAISO Board of Governors on February
> 28, 2001.  Following that meeting we were requested to work with the CAISO
> staff to develop a resolution to be presented at the next Board meeting on
> March 15, 2001.  The CAISO staff will be presenting their solution
> described as "Market Stabilization Plan/Interim Market Redesign" in a
> effort to resolve this and other problems.
>
> While the CAISO plan may have long-term benefits, it has been brought
> forward without the benefit of full stakeholder airing and we believe that
> it will be difficult to complete all software and systems work in time to
> have benefit this summer.  In addition, it will require significant
> participant re-education.  We are also very concerned about the amount of
> time remaining to complete this process along with the risks and costs
> associated with its implementation.  Therefore, APX will finalize its
> offer for the solution that we described to you on February 21 as an
> alternative to the CAISO staff plan during the upcoming CAISO Board of
> Governors meeting.  We know that our solution can be implemented in time,
> that it will improve adequate supply and that it will save millions of
> dollars this summer.
>
> We have heard from many of you that you support this market as a viable
> way of mitigating the high cost of congestion in the coming months. WE ARE
> ASKING FOR YOUR SUPPORT OF THIS PLAN WITH the CAISO Board of Governors on
> March 15, 2001.
>
>
> Sincerely,
>
>
>
> Michael L. Heinrich   John Stremel
> Vice President    Vice President
> Automated Power Exchange  Automated Power Exchange
>
>
> Mike
> Michael L. Heinrich
> Vice President
> Automated Power Exchange
> 5201 Great America Parkway
> Suite 522
> Santa Clara, CA  95054
> 408-517-2100
> Direct: 408-517-2159
> Mobile: 408-393-1092
> e-mail: mheinrich@apx.com
> www.apx.com
>
>