transcript of a bizarre and unusual telephone call from the iso here is the transcript of the iso ' s real - time desk asking enron real - time trader ryan slinger to help the iso " set " the market - clearing price ( " mcp " ) for replacement energy . the iso wanted enron to help set the mcp for replacement energy at $ 91 . 86 , because the iso was upset that the mcp had dropped to a penny , and now market participants were buying the iso ' s excess energy a penny ( after having sold it to the iso for $ 91 the day before ) .
there are two phone calls . the first call is the iso calling to ask us to help it to set the price . the next call occurs three minutes later and is the iso calling because we didn ' t put in the bid . our trader told the iso that he had to " talk to his boss " because he " didn ' t want to do anything wrong . "
note : i have just learned a complicating detail : coincidentally , our desk did put in a bid for $ 91 . 86 for hour 18 , which was what the iso had requested . however , the bid had been formulated before the iso called our desk .
transcription of a telephone conversation between the iso ' s real time desk and enron ' s real time desk - july 3 , 2001 , 14 : 40 : 50 - 14 . 43 : 38
enron : enron , this is david [ porter ] .
iso : hi david . this is allen at the iso .
enron : david : hi allen . how ya doing ?
iso : allen : hold on one sec . i ' ve got to get something .
unknown : stage one at 11 .
iso : allen : hey , i ' m on the hour - ahead desk . did you guys put a bid in ?
enron : david : yes , hang on one second allen .
iso : allen : yeah .
enron : ryan : this is ryan [ slinger ] .
iso : allen : hey ryan , this is allen at the iso hour ahead . did you guys put a trade in , replacement [ energy ] ? not trade , but a bid ?
enron : ryan : for which hour , for hour 15 ?
iso : allen : for hour 16 ?
enron : ryan : for hour 16 , correct .
iso : allen : can you guys continue to put the price at that ?
enron : ryan : at what ? at $ 91 . 86 ?
iso : allen : yes
enron : ryan : um , ? .
iso : allen : this isn ' t on a recorded line , but we wanted to do that because of some of the things that we are seeing . it would be good to keep it [ the market clearing price for replacement energy ] at a higher price . it doesn ' t matter how many megawatts you put it at , but we want to clear it at a higher price .
enron : ryan : wait , you said we ' re not on a recorded line , or we are ?
iso : allen : we ' re not . no , we ' re not , okay . we already talked to the day - ahead research guy and myself , but we saw you guys clear at $ 91 and we wanted you , if it ' s possible , to continue to set that , whether it ' s 20 mw or whatever you want to put in there .
enron : ryan : okay , um ? . .
iso : allen : we want to clear it at that because of some issues we are seeing as far as others that are taking advantage of the market .
enron : ryan : oh yeah . because it had been clearing like at $ 100 , hadn ' t it ?
iso : allen : not replacement .
enron : ryan : oh , not replacement ?
iso : allen : no . what happened is that we bought it back ? . see , the day - ahead was purchased at like $ 100 and then what happened is that the hour - ahead . . . a bunch of these people were buying it back for a penny over the [ inter ] ties . they were faking it . so we wanted to keep the price up high .
allen and ryan : unintelligible .
enron : ryan : so they were selling it , oh , in the day ahead , and buying it back ? .
iso : allen : buying like 60 bucks . . . trying to make money off of it , then basically they are trying to buy it back at a penny .
enron : ryan : oh , that ' s ridiculous .
iso : allen : that ' s really ticking us off and right now . . .
enron : ryan : that to me signals , that ' s probably powerex , isn ' t it ?
iso : allen : there ' s about four of them right now .
enron : ryan : shit .
iso : allen : and for the day - ahead for tomorrow , we didn ' t , we didn ' t , we took them out . basically , we ' re not allowing anything over the ties .
enron : ryan : i didn ' t submit one for 17 or ? .
iso : allen : that ' s fine . they ' ll probably go to a penny and they ' ll probably get excited and do a bunch , and we ' ll hopefully cut them off if you can get the next price and the next market at 80 or 91 .
enron : ryan : okay . all right . well , i ' ll see what i can do .
iso : allen : i appreciate it . it ' s actually in the best interest for the state and the iso [ with ] what these guys are doing , so we are trying to put a stop to it .
enron : ryan : okay .
iso : allen . thanks , bye .
transcription of a telephone conversation between the iso ' s real time desk and enron ' s real time desk - july 3 , 2001 , 14 : 46 : 55 - 14 : 47 : 40 ( 3 minutes later )
enron : this is ryan .
iso : hey ryan , its allen .
enron : ryan : yeah .
iso : allen : hey , did you put it in for the next hour ?
enron : ryan : for hour 16 ?
iso : allen : yeah , no , they already ran 17 .
enron : ryan : oh , i didn ' t do 17 , no .
iso : allen : well , see , we ' re gonna run , we ' re gonna run 18 coming up here in the next fifteen minutes .
enron : ryan : okay .
iso : allen : if you have any questions , let me know . i hope you know this is me from the iso . i don ' t know if you think i ' m somebody else but you can call me at the hour - ahead desk .
enron : ryan : well , i mean , i ' m talking to my boss right now as far as , because of , you know , i don ' t want to be doing anything that ' s wrong .
iso : allen : yeah ?
enron : ryan : even if it is helping you guys out , if it ' s wrong , i can ' t do it .
iso : allen : i know , but if you continue to bid in at , um , the market , that ' s the best thing to do . for replacement . all right .
enron : ryan : okay , i ' ll see what i can do .
iso : allen : thanks , man .
transcript of a bizarre and unusual telephone call from the iso
here is the transcript of the iso ' s real - time desk asking enron real - time trader ryan slinger to help the iso " set " the market - clearing price ( " mcp " ) for replacement energy . the iso wanted enron to help set the mcp for replacement energy at $ 91 . 86 , because the iso was upset that the mcp had dropped to a penny , and now market participants were buying the iso ' s excess energy a penny ( after having sold it to the iso for $ 91 the day before ) .
there are two phone calls . the first call is the iso calling to ask us to help it to set the price . the next call occurs three minutes later and is the iso calling because we didn ' t put in the bid . our trader told the iso that he had to " talk to his boss " because he " didn ' t want to do anything wrong . "
note : i have just learned a complicating detail : coincidentally , our desk did put in a bid for $ 91 . 86 for hour 18 , which was what the iso had requested . however , the bid had been formulated before the iso called our desk .
transcription of a telephone conversation between the iso ' s real time desk and enron ' s real time desk - july 3 , 2001 , 14 : 40 : 50 - 14 . 43 : 38
enron : enron , this is david [ porter ] .
iso : hi david . this is allen at the iso .
enron : david : hi allen . how ya doing ?
iso : allen : hold on one sec . i ' ve got to get something .
unknown : stage one at 11 .
iso : allen : hey , i ' m on the hour - ahead desk . did you guys put a bid in ?
enron : david : yes , hang on one second allen .
iso : allen : yeah .
enron : ryan : this is ryan [ slinger ] .
iso : allen : hey ryan , this is allen at the iso hour ahead . did you guys put a trade in , replacement [ energy ] ? not trade , but a bid ?
enron : ryan : for which hour , for hour 15 ?
iso : allen : for hour 16 ?
enron : ryan : for hour 16 , correct .
iso : allen : can you guys continue to put the price at that ?
enron : ryan : at what ? at $ 91 . 86 ?
iso : allen : yes
enron : ryan : um , ? .
iso : allen : this isn ' t on a recorded line , but we wanted to do that because of some of the things that we are seeing . it would be good to keep it [ the market clearing price for replacement energy ] at a higher price . it doesn ' t matter how many megawatts you put it at , but we want to clear it at a higher price .
enron : ryan : wait , you said we ' re not on a recorded line , or we are ?
iso : allen : we ' re not . no , we ' re not , okay . we already talked to the day - ahead research guy and myself , but we saw you guys clear at $ 91 and we wanted you , if it ' s possible , to continue to set that , whether it ' s 20 mw or whatever you want to put in there .
enron : ryan : okay , um ? . .
iso : allen : we want to clear it at that because of some issues we are seeing as far as others that are taking advantage of the market .
enron : ryan : oh yeah . because it had been clearing like at $ 100 , hadn ' t it ?
iso : allen : not replacement .
enron : ryan : oh , not replacement ?
iso : allen : no . what happened is that we bought it back ? . see , the day - ahead was purchased at like $ 100 and then what happened is that the hour - ahead . . . a bunch of these people were buying it back for a penny over the [ inter ] ties . they were faking it . so we wanted to keep the price up high .
allen and ryan : unintelligible .
enron : ryan : so they were selling it , oh , in the day ahead , and buying it back ? .
iso : allen : buying like 60 bucks . . . trying to make money off of it , then basically they are trying to buy it back at a penny .
enron : ryan : oh , that ' s ridiculous .
iso : allen : that ' s really ticking us off and right now . . .
enron : ryan : that to me signals , that ' s probably powerex , isn ' t it ?
iso : allen : there ' s about four of them right now .
enron : ryan : shit .
iso : allen : and for the day - ahead for tomorrow , we didn ' t , we didn ' t , we took them out . basically , we ' re not allowing anything over the ties .
enron : ryan : i didn ' t submit one for 17 or ? .
iso : allen : that ' s fine . they ' ll probably go to a penny and they ' ll probably get excited and do a bunch , and we ' ll hopefully cut them off if you can get the next price and the next market at 80 or 91 .
enron : ryan : okay . all right . well , i ' ll see what i can do .
iso : allen : i appreciate it . it ' s actually in the best interest for the state and the iso [ with ] what these guys are doing , so we are trying to put a stop to it .
enron : ryan : okay .
iso : allen . thanks , bye .
transcription of a telephone conversation between the iso ' s real time desk and enron ' s real time desk - july 3 , 2001 , 14 : 46 : 55 - 14 : 47 : 40 ( 3 minutes later )
enron : this is ryan .
iso : hey ryan , its allen .
enron : ryan : yeah .
iso : allen : hey , did you put it in for the next hour ?
enron : ryan : for hour 16 ?
iso : allen : yeah , no , they already ran 17 .
enron : ryan : oh , i didn ' t do 17 , no .
iso : allen : well , see , we ' re gonna run , we ' re gonna run 18 coming up here in the next fifteen minutes .
enron : ryan : okay .
iso : allen : if you have any questions , let me know . i hope you know this is me from the iso . i don ' t know if you think i ' m somebody else but you can call me at the hour - ahead desk .
enron : ryan : well , i mean , i ' m talking to my boss right now as far as , because of , you know , i don ' t want to be doing anything that ' s wrong .
iso : allen : yeah ?
enron : ryan : even if it is helping you guys out , if it ' s wrong , i can ' t do it .
iso : allen : i know , but if you continue to bid in at , um , the market , that ' s the best thing to do . for replacement . all right .
enron : ryan : okay , i ' ll see what i can do .
iso : allen : thanks , man .