Arthur,

Please include Mark Denner and Chris Stokley in any future discussions.  

Mark is responsible for customer invoicing and Chris is responsible for developing the consumption band calculations (Volume Management).  

Please also include Brenda Herod and myself so we are up to date on activities.

Thanks - MO

 -----Original Message-----
From: 	Goldsmith, Arthur  
Sent:	Friday, September 28, 2001 4:19 PM
To:	O'Neil, Murray P.; Woodward, Jason
Cc:	Blanks, Tom; Woodward, Jason; Anzalone, Phyllis; Gonzalez, Victor; Shields, Craig
Subject:	Aggregation Deals

In recent meetings regarding the development of our aggregation book of business, there have been issues raised that will have a direct impact on Operations as we move ahead with these deals.  My concern surrounds scalability.  We appear to be introducing concepts that may not be aligned with the approach to have low-touch billing which can be completed with an automated process.

First, the contracts include a 110% consumption band with amounts in excess of this band being charged to the entities contributing to the excess.  Operations needs to have access to both the current and baseline monthly data in order to complete this calculation.  Further, the consumption needs to be allocated to those members contributing to the excess and a price applied for invoicing.

Second, the aggregators RFP's all call for EES to collect their fee and remit it back to them.  There are different methods of determining this amount, as addressed in a separate email copied to you, and this too requires Operations resources.

Third, pricing settlement calculations call for the comparison of weighted average hourly index charge versus the EES contract rate for the month.  This data would be available from the Baseline group, and the information exchange process needs to be clearly spelled.

Finally, a savings report that compares the PTB in Texas to the contract rate needs to be developed.  We have been able to get across the message that a report is better than the need to show savings on the invoice.  Again, the information exchange process and the manpower needs have to be developed.

Let me know who is the best contact person in your group, and we will keep you up to date on these issues.

Thanks,
Arthur