
Date: Thu, 12 Jul 2001 09:20:00 -0700 (PDT)
From: guillermo.canovas@enron.com
To: luiz.maurer@enron.com, harry.kingerski@enron.com, amr.ibrahim@enron.com
Subject: Argentine Power Market - Presentation before the Secretariat of
Energy
Cc:  andrea.calo@enron.com, julian.poole@enron.com,
richard.shapiro@enron.com, james.steffes@enron.com,
sergio.assad@enron.com, jose.bestard@enron.com
Bcc:  andrea.calo@enron.com, julian.poole@enron.com,
richard.shapiro@enron.com, james.steffes@enron.com,
sergio.assad@enron.com, jose.bestard@enron.com

I had a conference call with Michael Guerriero, Juli?n Poole and Andrea Calo
regarding the information Enron must submit to ACEERA, the power marketers
association, next Monday morning, to be included in ACEERA's presentation to
the Secretariat of Energy.
I will make the first draft of the information we will submit next Monday
morning, that will cover points 9 to 13 below. My draft must be ready
tomorrow afternoon.
In order to do it, I will apreciate if you could give material to support the
following main guidelines (in blue) we would follow.
The material could include papers, letters, documents, and international
examples I could mention, explaining the benefits of following these criteria
and how should they be implemented.

9. Criteria for the treatment of Marketers' activities.
They are not a public service
Marketers should daily declare their offered prices (as gencos) for their
forcasted firm supply to be included in the determination of daily dispatch
and spot prices. This could reduce the supply concentration.
Warranties required to Marketers. All players in the spot market should
present similar warranties.
Right to interrupt the service for customer default. How can this be
implemented?
It should be allowed to act as both marketers or brokers.

10. Criteria for the treatment of large users.
All gencos, marketers, distcos and large users must be authorized to be both
the buyer and seller in the foward contracts market

11. Criteria for the treatment of supply contracts.

12.  Criteria for transferring to end users market prices.
Possibility to include in the pass through the cost of hedging products. Did
we get this approved anywhere in USA? Where? How is the pass through done
(procedure)?
Full unbundling is better than pass through, since prices can be determined
by supply and demand

13.  Criteria for  functioning of the forward market.
All gencos, marketers, distcos and large users must be authorized to be both
the buyer and seller in the foward contracts market
Elimination of minimum terms and volumes in this market
Free prices and conditions
Forward market contracts do not require former aproval to be executed.
Only LDC's contracts to be included in the pass through to rates should be
subject to regulation.

And any other point you consider relevant to make related to these subjects

I will appreciate any information you could give me as soon as possible.
Regards
GC

