
Date: Tue, 3 Jul 2001 16:02:00 -0700 (PDT)
From: guillermo.canovas@enron.com
To: richard.shapiro@enron.com, james.steffes@enron.com
Subject: Power Decree 804 and Resolution 135
Cc: andrea.calo@enron.com, michael.guerriero@enron.com, 
Bcc: andrea.calo@enron.com, michael.guerriero@enron.com, 

This is to inform you the recent approval of the below commented rules in
Argentina. If the economic and political environment gets calmer, these rules
will be an important step in the power deregulation process an will allow us
to reach some of the goals set for the regulatory group for this year.

Goal 1- Eliminate or Increase fuel declaration caps: there will not be more
fuel declarations but price declarations (Section 1, Resolution 135). The
rules do not mention any cap for price declarations.

Goal 2 - Daily fuel declaration: The 6 month fuel declaration was replaced by
a daily price declaration (Section 1, Resolution 135).

Goal 3 - Reduce or eliminate the obligation to physically back up agreements
with end users or LDCs: According to the interpretation of AGEERA (Gencos
Association) we would have been gotten also this objective and marketers may
already buy or sell spot as long as the contract with the customer does not
have supply guarantee (Section 5, Resolution 135). It is not clear in the
rule wich is the condition for marketers to buy or sell spot.

Now the Secretariat of Energy must issue its own Resolution to amend the
technical Procedures in line with these rules. From the text of Resolution
135 (sections 3 c, 5 and considerations) there would be a good probability to
reach other two goals through the Secretariat of Energy rule:
Reduce minimum term for Output & Demand Marketing Agreements to one month
Eliminate or reduce to 1 MW the threshold for Output Marketing Agreements

Amr and I are asisting Buenos Aires Ofice to analize the new rules to
eventually submit comments to the Secretariat of Energy.
Attached is the document with the regulatory goals.
Regards
Guillermo


