I just sent this and should have copied you on this also.

Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>




-----Original Message-----
From: Almeida, Keoni
Sent: Thursday, May 31, 2001 11:39 AM
To: Foster, Chris
Cc: Comnes, Alan; Williams, Bill III
Subject: RE: Questions


Here is a version with more answers.



Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>




-----Original Message-----
From: Almeida, Keoni
Sent: Thursday, May 31, 2001 10:55 AM
To: Foster, Chris; Almeida, Keoni
Cc: Comnes, Alan; Williams, Bill III
Subject: RE: Question


See inserted comments in parentheses.

Restating what I think you have indicated below,
biomass generators are not required to submit heat rate data (correct), but
they are
included in the FERC Order Program in that any "excess" capacity is bid in
to the ISO at a price of $0.  Is that correct? (You are required to "offer"
all available capacity to the ISO but the ISO will only insert a $0 standing
bid for those units that we have good data as to their available generation
(i.e. major PGA units). Can they submit heat rate
data if they want so a proxy price north of $0? (Proxy bid price are only
calculated for gas-fired units. If they don't want to be a price taker (i.e.
have a bid of $0), they simply need to bid their available capacity into the
real-time market at whatever bid price they feel is appropriate.)


Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>




-----Original Message-----
From: Chris.H.Foster@enron.com [mailto:Chris.H.Foster@enron.com]
Sent: Thursday, May 31, 2001 6:54 AM
To: KAlmeida@caiso.com
Cc: Alan.Comnes@enron.com
Subject: RE: Question


K:

Yes, it is contradictory.  Restating what I think you have indicated below,
biomass generators are not required to submit heat rate data, but they are
included in the FERC Order Program in that any "excess" capacity is bid in
to the ISO at a price of $0.  Is that correct?  Can they submit heat rate
data if they want so a proxy price north of $0?

C

    -----Original Message-----
   From:   "Almeida, Keoni" <KAlmeida@caiso.com>@ENRON

[mailto:IMCEANOTES-+22Almeida+2C+20Keoni+22+20+3CKAlmeida+40caiso+2Ecom+3E+4
0ENRON@ENRON.com]


   Sent:   Wednesday, May 30, 2001 2:44 PM
   To:     Almeida, Keoni; Foster, Chris H.
   Subject:  RE: Question

   Q - Are biomass and other renewable Generators subject  to the
   must-offer
   requirement?  What if gas is a supplemental fuel for solar? [As stated
   in
   5.11.1, any non-hydroelectric Generating Unit that is located in
   California
   and from which energy or capacity is either I) sold through any market
   operated by the ISO, or ii) transmitted over the ISO controlled grid are
   subject to the must-offer requirement. The FERC Order does not exempt
   renewables other than hydro.

   This may sound like it is contradicting the the response below, however,
   it
   indicates that we will not use a proxy price, but rather, we will submit
   a
   zero bid in if you do not already have a bid in and you have available
   capacity.  I will verify.

   Keoni Almeida
   California Independent System Operator
   phone: 916/608-7053
   pager:  916/814-7352
   alpha page:  9169812000.1151268@pagenet.net
   e-mail:  <mailto:kalmeida@caiso.com>



   > -----Original Message-----
   > From:      Almeida, Keoni
   > Sent:      Wednesday, May 30, 2001 10:36 AM
   > To:   Foster, Chris
   > Subject:   Question
   >
   >
   >  Are biomass and other renewable Generators subject  to the must-offer
   > requirement?  What if gas is a supplemental fuel for solar?
   >
   > No.  The gas is not their primary source.
   >
   >
   > Keoni Almeida
   > California Independent System Operator
   > phone: 916/608-7053
   > pager:  916/814-7352
   > alpha page:  9169812000.1151268@pagenet.net
   > e-mail:  <mailto:kalmeida@caiso.com>
   >
   >
   >


 - FERCorderQuestions.doc