
Date: Thu, 14 Jun 2001 03:36:00 -0700 (PDT)
From: peter.styles@enron.com
To: bruno.gaillard@enron.com, nailia.dindarova@enron.com,
david.gonzalez@enron.com, alfredo.huertas@enron.com,
antoine.duvauchelle@enron.com
Subject: France-Spain interconnection capacity booking and EnBW/
Hidrocantabrico merger review
Cc: mariano.gentilini@enron.com,  ross.sankey@enron.com,
pierre.gaulle@enron.com, raphael.brun@enron.com,
philip.davies@enron.com, simon.brod@enron.com,
brendan.devlin@enron.com, gregor.baumerich@enron.com,
pamela.milano@enron.com
Bcc: mariano.gentilini@enron.com,  ross.sankey@enron.com,
pierre.gaulle@enron.com, raphael.brun@enron.com,
philip.davies@enron.com, simon.brod@enron.com,
brendan.devlin@enron.com, gregor.baumerich@enron.com,
pamela.milano@enron.com

Aitor Moso of Iberdrola told me in Madrid yesterday that Iberdrola have
"inherited", at least for a few months, 550 MW of import capacity under use
it or lose it rules introduced by RTE in '99 or '00. Apparently EdF had kept
using that capacity till early Winter, then kept nominating it for use, but
actually did not use it for four months. The reason was excess hydropower
availability in Spain driving prices down. Once the four month period
expired, EdF lost the capacity rights and Iberdrola jumped in and booked it.
I assume Raphael and Paul are aware of all this.

I was also told that RTE is holding a seminar on their France-Spain
interconnection capacity auction proposals in Paris next Monday. Iberdrola,
Endesa and Hidrocantabrico (not surprisingly!) seem to be supportive. Are we
attending?

All these developments will of course be relevant to our answers to the Phase
2 questionnaire. When it arrives (tomorrow or Monday?) we may only be given a
few days to answer it. Are we prepared?  Bruno and Nailia have some days off
in the next week or so let's get to work in advance - providing Ross,
Mariano, Paul and Gregor back an intervention. The three previous submissions
to DG COMP to work off are:
a) '99  (?) on France/ Spain exports,
b) '00 on EdF/ EnBW, and
c) '01 on EdP/ Hidrocantabrico.

I foresee the most obvious remedies to target being:
1) Freeing up LTRs on interconnectors.
2) Enhancing VPP auctions.



