
Date: Thu, 20 Apr 2000 00:55:00 -0700 (PDT)
From: james.steffes@enron.com
To: jeff.brown@enron.com, jeff.dasovich@enron.com, lisa.yoho@enron.com
Subject: Enron Net Works
Cc: richard.shapiro@enron.com, marcia.linton@enron.com
Bcc: richard.shapiro@enron.com, marcia.linton@enron.com

New Market Opportunity:  Industrial Hourly Sales

I was wondering if it made sense to discuss internal to Enron Government=20
Affairs the concept of opening the Large Industrial Market to eCommerce.  I=
f=20
we think this is reasonable, maybe we can make a pitch to the Enron NetWork=
s.

It is my recollection that the current regulatory rules related to customer=
=20
switching and marketer enrollment do not allow large consumers to buy energ=
y=20
on a less than monthly basis - there is no switching within the month.  LDC=
s=20
have historically prohibitied this to make sure that they were "paid" and=
=20
energy flows were in "balance".

To me, this regulatory "restriction" makes no sense at all.  First, big=20
consumers have the capability to buy energy hourly - staff and resources. =
=20
Second, big consumers need to be sure that they are getting the absolute=20
lowest price.  Third, big consumers control the load which if proper price=
=20
signals are provided can be used to reduce overall system peaks.  Finally,=
=20
the LDC arguments have always been ridiculous - they buy and sell energy=20
hourly.

To initiate this discussion, I was wondering if Jeff Dasovich and Lisa Yoho=
=20
could find out in CA and PA, respectively, if I am correct about the=20
regulatory "restrictions".  The other question, for Jeff Brown, is whether =
or=20
not we could construct a framework for Enron Online that provides for the=
=20
purchasing of the large customer full requirements (for example, metering,=
=20
data needs, etc.).

Does this make sense to everyone?  If I am way out in left field, let's not=
=20
do alot of work.  It just seems to me that we should try to migrate big=20
consumer load to Enron Online before competitors get into eCommerce.

JDS




