re : fw : pserc nuggets related to market stem hi vince and happy new year
good to hear from you and i can understand being busy . i am myself trying to
balance my commitments here .
like any research consortium pserc is trying to provide value to its members
while walking the fine line between cooperation and competition . we are
definitely not in the business of providing proprietary research to the
members but rather working on more generic areas that later individual
members could see way to convert to proprietary tools . the work that shijie
deng and rajnish kamat have been doing with me are good examples .
as to my trip , thanks for the invitation but i already committed myself to
get back friday night so i will save my visit for another time .
i will tell my son about the spring interviews at cornell . hopefully this
time he will not miss it .
regards , shmuel
- - - - - original message - - - - -
from :
to :
cc :
sent : monday , january 08 , 2001 1 : 40 pm
subject : re : fw : pserc nuggets related to market stem
>
> hello shmuel ,
>
> thanks for your message . the end of 2000 and the beginning of 2001 were
> extremely busy
> and i could not focus on pserc issues . i shall consult a few people in
> enron on this subject and get in
> touch with you . our concern right now is that the results of research are
> widely shared with
> our competition .
>
> i am out on the 19 th , but the 20 th would work for me . i would be glad to
> cover the cost of your austin
> to houston trip .
>
> regarding your son . the analyst / associate program will interview again
on
> the campus
> in the spring and they will be more than happy to interview him .
>
>
>
>
>
> " shmuel oren " on 12 / 19 / 2000 01 : 40 : 02 pm
>
> to :
> cc : " dennis ray " , ,
>
> subject : fw : pserc nuggets related to market stem
>
>
> hello vince
> happy holidays .
> i wanted to connect with you regarding the possibility of enron joining
> pserc . as you might have heard from lance and alex we are going through a
> transition period having doubled the number of universities and industry
> members within the last year . consequently , our business processes are not
> well developed . one of the problems we are facing is the balance between
> the
> electrical engineering folks and industry members that are more interested
> in market related research . i hope to recruit more of the later so tat we
> have more of a constituency in the advisory board that sees the value of
> market related research . i already have a verbal commitment from people at
> electrabell that expressed interest in joining pserc . with members like
> electrabell and enron we will be able to support more market stem projects
> such as the one that shijie deng proposed ( not funded in this round ) .
> please
> let me know if i can do anything to facilitate the decision at enron . i am
> going to be in austin on january 19 to participate at a puct hearing and
> could come through huston for a visit . attached are some items that i
> shared
> with our pserc members and thought that you might be interested in them as
> well .
> regards , shmuel .
>
> - - - - - original message - - - - -
> from : " shmuel oren "
> to : " power systems engineering research center "
> sent : tuesday , december 19 , 2000 9 : 47 am
> subject : re : pserc nuggets related to market stem
>
>
> > the following are 3 items that demonstrate the impact of pserc research
> in
> > the market stem area .
> >
> > 1 . on december 12 , i ( shmuel oren ) testified at a hearing in san
> francisco
> > before the blue ribbon panel ( chaired by alfred kahn ) for the that is
> > investigating the implications of uniform price vs . pay as bid auctions
> in
> > the california px . as part of my testimony i presented a movie produced
> by
> > tim mount and bob thomas that show results of an experimental economic
> study
> > showing how bidders respond by raising their bids in a pay as bid
> auction .
> > following is an acknowledgement i received .
> >
> > dear shmuel :
> >
> >
> > thank you for attending the blue ribbon panel this past tuesday in san
> > francisco . your presentation was very informative and valuable to all
> the
> > panel members and other participants . the panel greatly appreciates
your
> > involvement in this important project .
> >
> >
> > thanks again ,
> > natalie efland
> >
> >
> > 2 . a recent e - mail from the texas puc
> >
> > professor oren , i hope you and your family are doing well . we are
> seriously
> > considering your help and advice to facilitate the commission ' s final
> > decision regarding retail competition in ercot .
> >
> > i wanted to let you know that ercot stakeholders filled an application
> for
> > approval of the ercot protocols in november . we received comments
> including
> > list of issues on november 22 and reply comments on december 1 . staff
> will
> > draft and submit a preliminary order to the commissioners for their
> > discussion on december 13 . there will be a pre - hearing on december 15
> when
> > parties will be asked to brief the commission on list of issues by the
> end
> > of first week in january . there will be a hearing on january 16
followed
> > with another hearing if needed . parties have asked the commission to
> > finalize its decision by mid march .
> >
> > to give you some more background , i have to mention that almost most of
> your
> > suggestions were accepted and will be reflected in the final protocols ,
> > except for problems with intra - zonal gaming regarding congestion
> management
> > and pay - as - bid compensation for selected ancillary services . a few
> > additional concerns are raised regarding ancillary services and
> congestion
> > management . stakeholders are still working toward more load
> participation
> > in ercot market . however , the main problem is the fact that market
> ( pilot
> > that covers 100 % of wholesale , but only 5 % of retail load ) will be open
> on
> > june 1 , 2001 based on a version of the protocols locked on august 1 ,
> 2000 .
> > ( that was the deadline for ercot to give a final design to anderson
> > consulting . ) that version does not include some of your recommendations
> to
> > address market design flaws . the full version is highly possible to be
> > implemented by january 1 , 2002 when market for 100 % retail competition
is
> > scheduled to open . given this gap , some parties have recommended not to
> > implement incomplete protocols and wait for full implementation by
> january
> > 2002 . in other words , they say let ' s go ahead with 5 % pilot retail
load ,
> > but wait for full design implementation before allowing 100 % wholesale
> load
> > ( and retail load ) be subject to the rules of the game described in the
> final
> > protocols .
> >
> > thanks .
> >
> > parviz adib , ph . d .
> > director of market oversight division
> > public utility commission of texas
> > 1701 n . congress avenue
> > p . o . box 13326
> > austin , texas 78711 - 3326
> > ph . no . : 512 - 936 - 7365
> >
> > 3 . the following is a segment from a published summary of the dec 13
puct
> > hearing . this segment describes the commision ' s deliberation on an
agenda
> > item addressing the possibility of instituting price caps as part of the
> > ercot protocols . ( see reference to my involvement in the next to last
> > paragraph )
> >
> > docket no . 23220 - petition of the electric reliability council of
> texas
> > for approval of the ercot protocols . ( discussion and possible action )
> > parviz adib , jess totten , keith rogas , and tammy cooper
> > chairman wood turned to page 2 item number 3 of the draft order
> identifying
> > issues , recommending that the word " including " be changed to " other
than "
> in
> > the parentheses . he thinks they know the ups and downs of the two
> > mechanisms , which are bid caps and price caps , but would not mind having
> > parties focus on what other protections might be used . commissioner
> walsh
> > would say " including , but not limited to " because she does not think it
> is
> a
> > bad idea for ercot to at least consider in their protocols a fail - safe
> > mechanism . it ' s kind of like the stock market suspending trading when
> > something crazy happens . they could consider a maximum scenario , such
as
> > " we don ' t think this will ever happen but if it does we need to muffle
> it " ,
> > whether it is $ 1 , 000 or $ 99 or whatever it is . they could consider
> whether
> > to put into the protocols a self - enacting price cap . while not
expecting
> it
> > to happen , if it did , you don ' t have to declare it an emergency and have
> the
> > commission have to act . chairman wood asked if they could leave the
> > question without the parenthetical at all and just say " what protections
> > should be added to avoid extreme price spikes . " commissioner walsh
> > reiterated that she wants ercot to think about the unlikely possibility
> of
> > unacceptable price spikes . she would like for them to have their own
> > fail - safe mechanism that is self - initiating as opposed to leaving that
to
> > having someone have to come in and act . commissioner perlman stated
that
> he
> > thinks the california - type price caps is what the concern is about . he
> > thinks everyone in this state is opposed to those , but he thinks the
> point
> > commissioner walsh is making is an interesting one . he had not thought
> > about the circuit breaker idea , and it might have some merit . he agreed
> > that it was worth considering something like that . then the question
> > becomes what the level is . chairman wood suggested the wording " what
> > self - implementing protections should be added to avoid the price spikes .
> > commissioner perlman said he did not think anyone is talking about $ 250
> > price caps . commissioner walsh agreed , but noted that if the unexpected
> > happens we should be prepared . commissioner perlman indicated that if
> > someone is making $ 10 , 000 in one particular hour that it probably does
> not
> b
> > enefit the market and is probably a windfall to them . it is not
> something
> > they would normally put in their business plan for determining whether
> they
> > are going to build a plant in texas . chairman wood stated that they
want
> to
> > lean toward the market as heavily as they can on these issues .
> >
> > chairman wood noted that some of these issues date back to when dr . oren
> was
> > assisting the commission , and asked if he could be brought back again .
> > staffer dr . parviz adib said that staff had already talked to dr . oren
> and
> > that he is available to assist the commission further . chairman wood
> noted
> > that dr . oren had helped people think outside the box without just
> focusing
> > on california .
> >
> > the final wording was clarified to state " self - implementing mechanisms "
> and
> > to delete the parenthetical part of the sentence in question . the order
> was
> > approved as amended .
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
>
>
>
>
>
>
re : fw : pserc nuggets related to market stem
hi vince and happy new year
good to hear from you and i can understand being busy . i am myself trying to
balance my commitments here .
like any research consortium pserc is trying to provide value to its members
while walking the fine line between cooperation and competition . we are
definitely not in the business of providing proprietary research to the
members but rather working on more generic areas that later individual
members could see way to convert to proprietary tools . the work that shijie
deng and rajnish kamat have been doing with me are good examples .
as to my trip , thanks for the invitation but i already committed myself to
get back friday night so i will save my visit for another time .
i will tell my son about the spring interviews at cornell . hopefully this
time he will not miss it .
regards , shmuel
- - - - - original message - - - - -
from :
to :
cc :
sent : monday , january 08 , 2001 1 : 40 pm
subject : re : fw : pserc nuggets related to market stem
>
> hello shmuel ,
>
> thanks for your message . the end of 2000 and the beginning of 2001 were
> extremely busy
> and i could not focus on pserc issues . i shall consult a few people in
> enron on this subject and get in
> touch with you . our concern right now is that the results of research are
> widely shared with
> our competition .
>
> i am out on the 19 th , but the 20 th would work for me . i would be glad to
> cover the cost of your austin
> to houston trip .
>
> regarding your son . the analyst / associate program will interview again
on
> the campus
> in the spring and they will be more than happy to interview him .
>
>
>
>
>
> " shmuel oren " on 12 / 19 / 2000 01 : 40 : 02 pm
>
> to :
> cc : " dennis ray " , ,
>
> subject : fw : pserc nuggets related to market stem
>
>
> hello vince
> happy holidays .
> i wanted to connect with you regarding the possibility of enron joining
> pserc . as you might have heard from lance and alex we are going through a
> transition period having doubled the number of universities and industry
> members within the last year . consequently , our business processes are not
> well developed . one of the problems we are facing is the balance between
> the
> electrical engineering folks and industry members that are more interested
> in market related research . i hope to recruit more of the later so tat we
> have more of a constituency in the advisory board that sees the value of
> market related research . i already have a verbal commitment from people at
> electrabell that expressed interest in joining pserc . with members like
> electrabell and enron we will be able to support more market stem projects
> such as the one that shijie deng proposed ( not funded in this round ) .
> please
> let me know if i can do anything to facilitate the decision at enron . i am
> going to be in austin on january 19 to participate at a puct hearing and
> could come through huston for a visit . attached are some items that i
> shared
> with our pserc members and thought that you might be interested in them as
> well .
> regards , shmuel .
>
> - - - - - original message - - - - -
> from : " shmuel oren "
> to : " power systems engineering research center "
> sent : tuesday , december 19 , 2000 9 : 47 am
> subject : re : pserc nuggets related to market stem
>
>
> > the following are 3 items that demonstrate the impact of pserc research
> in
> > the market stem area .
> >
> > 1 . on december 12 , i ( shmuel oren ) testified at a hearing in san
> francisco
> > before the blue ribbon panel ( chaired by alfred kahn ) for the that is
> > investigating the implications of uniform price vs . pay as bid auctions
> in
> > the california px . as part of my testimony i presented a movie produced
> by
> > tim mount and bob thomas that show results of an experimental economic
> study
> > showing how bidders respond by raising their bids in a pay as bid
> auction .
> > following is an acknowledgement i received .
> >
> > dear shmuel :
> >
> >
> > thank you for attending the blue ribbon panel this past tuesday in san
> > francisco . your presentation was very informative and valuable to all
> the
> > panel members and other participants . the panel greatly appreciates
your
> > involvement in this important project .
> >
> >
> > thanks again ,
> > natalie efland
> >
> >
> > 2 . a recent e - mail from the texas puc
> >
> > professor oren , i hope you and your family are doing well . we are
> seriously
> > considering your help and advice to facilitate the commission ' s final
> > decision regarding retail competition in ercot .
> >
> > i wanted to let you know that ercot stakeholders filled an application
> for
> > approval of the ercot protocols in november . we received comments
> including
> > list of issues on november 22 and reply comments on december 1 . staff
> will
> > draft and submit a preliminary order to the commissioners for their
> > discussion on december 13 . there will be a pre - hearing on december 15
> when
> > parties will be asked to brief the commission on list of issues by the
> end
> > of first week in january . there will be a hearing on january 16
followed
> > with another hearing if needed . parties have asked the commission to
> > finalize its decision by mid march .
> >
> > to give you some more background , i have to mention that almost most of
> your
> > suggestions were accepted and will be reflected in the final protocols ,
> > except for problems with intra - zonal gaming regarding congestion
> management
> > and pay - as - bid compensation for selected ancillary services . a few
> > additional concerns are raised regarding ancillary services and
> congestion
> > management . stakeholders are still working toward more load
> participation
> > in ercot market . however , the main problem is the fact that market
> ( pilot
> > that covers 100 % of wholesale , but only 5 % of retail load ) will be open
> on
> > june 1 , 2001 based on a version of the protocols locked on august 1 ,
> 2000 .
> > ( that was the deadline for ercot to give a final design to anderson
> > consulting . ) that version does not include some of your recommendations
> to
> > address market design flaws . the full version is highly possible to be
> > implemented by january 1 , 2002 when market for 100 % retail competition
is
> > scheduled to open . given this gap , some parties have recommended not to
> > implement incomplete protocols and wait for full implementation by
> january
> > 2002 . in other words , they say let ' s go ahead with 5 % pilot retail
load ,
> > but wait for full design implementation before allowing 100 % wholesale
> load
> > ( and retail load ) be subject to the rules of the game described in the
> final
> > protocols .
> >
> > thanks .
> >
> > parviz adib , ph . d .
> > director of market oversight division
> > public utility commission of texas
> > 1701 n . congress avenue
> > p . o . box 13326
> > austin , texas 78711 - 3326
> > ph . no . : 512 - 936 - 7365
> >
> > 3 . the following is a segment from a published summary of the dec 13
puct
> > hearing . this segment describes the commision ' s deliberation on an
agenda
> > item addressing the possibility of instituting price caps as part of the
> > ercot protocols . ( see reference to my involvement in the next to last
> > paragraph )
> >
> > docket no . 23220 - petition of the electric reliability council of
> texas
> > for approval of the ercot protocols . ( discussion and possible action )
> > parviz adib , jess totten , keith rogas , and tammy cooper
> > chairman wood turned to page 2 item number 3 of the draft order
> identifying
> > issues , recommending that the word " including " be changed to " other
than "
> in
> > the parentheses . he thinks they know the ups and downs of the two
> > mechanisms , which are bid caps and price caps , but would not mind having
> > parties focus on what other protections might be used . commissioner
> walsh
> > would say " including , but not limited to " because she does not think it
> is
> a
> > bad idea for ercot to at least consider in their protocols a fail - safe
> > mechanism . it ' s kind of like the stock market suspending trading when
> > something crazy happens . they could consider a maximum scenario , such
as
> > " we don ' t think this will ever happen but if it does we need to muffle
> it " ,
> > whether it is $ 1 , 000 or $ 99 or whatever it is . they could consider
> whether
> > to put into the protocols a self - enacting price cap . while not
expecting
> it
> > to happen , if it did , you don ' t have to declare it an emergency and have
> the
> > commission have to act . chairman wood asked if they could leave the
> > question without the parenthetical at all and just say " what protections
> > should be added to avoid extreme price spikes . " commissioner walsh
> > reiterated that she wants ercot to think about the unlikely possibility
> of
> > unacceptable price spikes . she would like for them to have their own
> > fail - safe mechanism that is self - initiating as opposed to leaving that
to
> > having someone have to come in and act . commissioner perlman stated
that
> he
> > thinks the california - type price caps is what the concern is about . he
> > thinks everyone in this state is opposed to those , but he thinks the
> point
> > commissioner walsh is making is an interesting one . he had not thought
> > about the circuit breaker idea , and it might have some merit . he agreed
> > that it was worth considering something like that . then the question
> > becomes what the level is . chairman wood suggested the wording " what
> > self - implementing protections should be added to avoid the price spikes .
> > commissioner perlman said he did not think anyone is talking about $ 250
> > price caps . commissioner walsh agreed , but noted that if the unexpected
> > happens we should be prepared . commissioner perlman indicated that if
> > someone is making $ 10 , 000 in one particular hour that it probably does
> not
> b
> > enefit the market and is probably a windfall to them . it is not
> something
> > they would normally put in their business plan for determining whether
> they
> > are going to build a plant in texas . chairman wood stated that they
want
> to
> > lean toward the market as heavily as they can on these issues .
> >
> > chairman wood noted that some of these issues date back to when dr . oren
> was
> > assisting the commission , and asked if he could be brought back again .
> > staffer dr . parviz adib said that staff had already talked to dr . oren
> and
> > that he is available to assist the commission further . chairman wood
> noted
> > that dr . oren had helped people think outside the box without just
> focusing
> > on california .
> >
> > the final wording was clarified to state " self - implementing mechanisms "
> and
> > to delete the parenthetical part of the sentence in question . the order
> was
> > approved as amended .
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
>
>
>
>
>
>