
Date: Fri, 1 Jun 2001 04:28:00 -0700 (PDT)
From: andy.rodriquez@enron.com
To: john.kinser@enron.com, don.baughman@enron.com, juan.padron@enron.com,
dustin.collins@enron.com, juan.hernandez@enron.com,
miguel.garcia@enron.com, dean.laurent@enron.com,
peter.makkai@enron.com, larry.campbell@enron.com,
benjamin.rogers@enron.com, steve.olinde@enron.com,
eric.saibi@enron.com, joe.errigo@enron.com,
christopher.watts@enron.com, mauricio.trejo@enron.com,
joe.stepenovitch@enron.com, kevin.presto@enron.com
Subject: FW: New E-Tag Feature:  Potential Adjust List
Cc: richard.shapiro@enron.com, james.steffes@enron.com, susan.scott@enron.com,
sarah.novosel@enron.com, charles.yeung@enron.com,
christi.nicolay@enron.com
Bcc: richard.shapiro@enron.com, james.steffes@enron.com, susan.scott@enron.com,
sarah.novosel@enron.com, charles.yeung@enron.com,
christi.nicolay@enron.com

I am pleased to announce that a new feature is being added to the E-Tag
system: the Potential Adjust List (PAL).

As you may or may not know, there is currently an "Adjust List" that is
issued when TLRs are called. An "Adjust List" is a recommendation from the
IDC that describes what transactions should be cut and by how much to achieve
needed relief to eliminate a constraint.  This Adjust List sent out to
Generation and Load Control Areas and Tag Authors for all transactions that
are being recommended for curtailment.  It is intended to aid in coordination
Control Area schedules during curtailment, as well as alert the marketplace
of recommendations for their transactions to be curtailed. Under the current
process, the Adjust List notice is sent out when the initiating Security
Coordinator and all impacted Security Coordinators have agreed to recommend
specific curtailments.  As such, this recommendation can occur very late,
leaving very little time for the market to react (i.e., resource and/or
resink their power).

The Potential Adjust List feature adds a second, earlier Adjust List that is
sent out when the initiating SC requests relief, but prior to the
confirmation of all the impacting SCs.  This should allow this recommendation
to be delivered several minutes sooner than it is today, giving more time for
the market to begin searching for alternate economic sources and sinks.  When
all impacted SCs confirm, the standard Adjust List recommendation is sent out
as it is today.

It should be recognized that both the Potential Adjust List and the standard
Adjust List do not represent actual curtailments - in both cases, they are
only recommendations for curtailment.  Control Areas may elect to curtail
different transactions or amounts than reflected in either Adjust List due to
local relief procedures or other business practices.  However, both lists
should aid in mitigating risk associated with physical transactions and
curtailments.  Further, empirical evidence seems to indicate that in the
majority of cases, the Potential Adjust List, standard Adjust List, and final
curtailments will be very close.

This change is based a proposal I wrote with the help and support of Jim
Eckelkamp (Carolina Power and Light), Mark Scheel (Dynegy), and Patt Terris
(Exelon Power Team).   If you talk to any of them during the course of daily
business, please thank them for their support of this effort.  With their
assistance in developing the concept, ironing out the technical details, and
cultivating NERC support in the various forums,  we were able to implement
this change very quickly.

I expect this change to take place sometime between June 15 and June 28.
Attached, please find a message from NERC that describes the feature and how
it works.  If you would like more detail, please let me know.  I currently
Chair the group that is responsible for improving E-Tag, and as such, am
intimately familiar with tagging and its functions.

In the next few weeks, I will be working with Don Baughman and Juan Hernandez
to ensure we utilize this feature (and others) to maximize the value of our
E-Tagging tools.  As indicated above, please feel free to contact me with any
questions.

Andy Rodriquez
Senior Regulatory Specialist - Enron Corp.
andy.rodriquez@enron.com
713-345-3771


