forwarding.
 -----Original Message-----
From: 	Day, Smith L.  
Sent:	Monday, October 15, 2001 3:28 PM
To:	Portz, David
Subject:	FW: Short Payment Notice
Importance:	High

Hi David:

This note appears more alarming than it is because the impact is only $6,500.00 for the entire Ercot wide system according to our ERCOT client representative in a phone conversation.  In light of this Kevin Presto wanted to get ideas from the legal world of what the impact might be if the shortfall was 65,000,000.  

In my reading of 9.4.4 of the protocols ERCOT would have had to go after the credit line of the non-paying QSE before taking the step of reducing payment of other QSE's.

I have to assume that these steps were taken and if so, then I would have to assume that the initial shortfall was greater than $6,500.00 to begin with.  If the credit lines of the offending QSE were not reached for by ERCOT then my question is, why not.  These steps are clearly outlined in the Protocol.

I have contacted Thane Twiggs who is in Austin now to find more facts and will let you know when I hear from him.

Regards,

Smith L. Day
Enron Power Marketing, Inc.
Ph. 713-853-4201
Fax: 713-646-8272
Pager: 877-306-9429









 -----Original Message-----
From: 	"Hailu, Ted" <THailu@ercot.com>@ENRON  
Sent:	Monday, October 15, 2001 12:35 PM
To:	Amie Jackson; Amy L. Pratka; Andy Mitrey; Angela Williams; Beth Garza; Bill Palmer; Bob Cooper; Brady Edwards; Brenda Green; Carl Smith; Carl Smith; Dan Carey; Dan Sarti; Dana Leger; David Wessels; Debbie Pawlik; Debra Bailey; Dennis Dyc; Eric Slover; Frances Nitschmann; Gary Herndon; Ginger Geissler; James Striedel; Janet Holland; Miller, Jeffrey; Jenny Doyas; Jerry Burt; Joe Barker; Joe Favalora; John Forney; Kathy Fitzmaurice; kelly Minear; Kim Koliba; Lee Star; Linda Le Master; Lisa Jones; Liz Ramirez; Lora Kinner; Marc Rubenstein; Maria Colby; Maria Gardner; Marianne Deane; Marice Nealy; Mark Wright; Martha Murphy; Max Bulk; Jacobson, Michael; Mike Coyle; Mike Tejada; Pat Vogelei; Paul Krebs; Radous, Paul; Peter Pavluk; Phillip Robinson; Ramesh Ganesh; Rhonda Hager; Rick Rucker; Rick Vick; Rick Williamson; Rosalie Day; Sam Davis; Sandra Eubank; Shannon Wagner; Shonda McKnight; Sonya Francois; Stacy Schamel; Stephanie Mullen; Susan Potters; Tamila Nikazm; Thomas Ho; Allen, Thresa A.; Tom White; Troy Martin; Valentin Petrov; Walt Kuhn
Cc:	1 Client Service Reps; Grendel, Steven; Bojorquez, William \"Bill\"; Noel, Tom; Jones, Sam; Tindall, Heather; 1 SCS Leads; Buckles, Maxine; Saathoff, Kent; 1 Settlements & Billing Department
Subject:	Short Payment Notice
Importance:	High


QSEs that are owed monies from ERCOT on invoices that are due today, October 15, 2001, will notice that the amount of funds transferred is short of the balance due on the invoice. This is a notification that ERCOT will follow the "short payment" procedure stated in the ERCOT protocols for payments being made to QSEs today.  Due to short payments by one or more QSEs, ERCOT is insufficient of funds to pay all amounts in full.  As described in the ERCOT protocols, section 9.4.4, ERCOT will deduct ERCOT administrative fees and reduce payments to all invoice recipients that are owed monies. The reductions will be based on a pro rata basis of monies owed to each ERCOT creditor for this invoice to the extent necessary to clear ERCOT's accounts on the payment date to insure revenue neutrality for ERCOT. ERCOT will distribute past due funds on a pro rata basis of monies owed on the next business day after receipt of the monies. 
If you have any questions, please call your ERCOT client service representative. 
Ted  Hailu 
Client Relations Manager 
Electric Reliability Council of Texas 
E-mail: Thailu@ercot.com 
Telephone: (512) 248-3873