fw : update : meeting w / edison re : recovery of negative ctc claim attached is a summary of the sce meeting to discuss our negative ctc claim . call if you would like any additional information .
jim
- - - - - original message - - - - -
from : dasovich , jeff
sent : friday , november 02 , 2001 5 : 55 pm
to : shapiro , richard ; steffes , james d . ; dietrich , janet ; blachman , jeremy ; frazier , lamar ; leff , dan ; hughes , evan ; smith , alison ; smith , mike ; williams , robert c . ; delainey , david w . ; kean , steven j . ; tribolet , michael ; curry , wanda ; mellencamp , lisa ; mara , susan ; kaufman , paul
subject : update : meeting w / edison re : recovery of negative ctc claim
? we met with edison yesterday in the attempt to settle our negative ctc claim .
? edison continues to take a very hard - line , extreme position . this is it in a nutshell :
1 . all customers - - bundled and da alike - - " contributed to edison ' s undercollection " and all customers must pay it down ;
2 . bundled customers contributed through frozen rates and da customers contributed through the negative ctc ;
3 . edison says it will pay esps past due amounts related to the negative ctc , but it intends to then turn around and assess a charge on all customer bills - - da and bundled alike - - to recover its undercollection .
4 . edison intends to collect it over approximately 2 years . edison estimates that the charge to da customers over this period would be about $ 25 - 27 / mwh .
5 . under edison ' s plan , enron would likely end up paying edison , i . e . , the present value of the " undercollection " charge would exceed the present value of the lump sum negative ctc payment .
? obviously , with respect to any settlement with edison , we ' re extremely far apart and we ' re therefore considering other options .
? in the meantime , the california puc is engaged in da and px credit - related activities beginning next week and edison will try to get the commission to adopt their proposal .
? we are working with other market participants and gearing up to vigorously oppose edison ' s proposal at the puc .
? we will distribute something on monday describing our approach and tactics at the puc for folks to review and comment on .
? we are scheduled to meet with edison again next thursday to try to knock some sense into them ( the probability of which is low ) .
if you have any questions , let us know .
best ,
jeff
fw : update : meeting w / edison re : recovery of negative ctc claim
attached is a summary of the sce meeting to discuss our negative ctc claim . call if you would like any additional information .
jim
- - - - - original message - - - - -
from : dasovich , jeff
sent : friday , november 02 , 2001 5 : 55 pm
to : shapiro , richard ; steffes , james d . ; dietrich , janet ; blachman , jeremy ; frazier , lamar ; leff , dan ; hughes , evan ; smith , alison ; smith , mike ; williams , robert c . ; delainey , david w . ; kean , steven j . ; tribolet , michael ; curry , wanda ; mellencamp , lisa ; mara , susan ; kaufman , paul
subject : update : meeting w / edison re : recovery of negative ctc claim
? we met with edison yesterday in the attempt to settle our negative ctc claim .
? edison continues to take a very hard - line , extreme position . this is it in a nutshell :
1 . all customers - - bundled and da alike - - " contributed to edison ' s undercollection " and all customers must pay it down ;
2 . bundled customers contributed through frozen rates and da customers contributed through the negative ctc ;
3 . edison says it will pay esps past due amounts related to the negative ctc , but it intends to then turn around and assess a charge on all customer bills - - da and bundled alike - - to recover its undercollection .
4 . edison intends to collect it over approximately 2 years . edison estimates that the charge to da customers over this period would be about $ 25 - 27 / mwh .
5 . under edison ' s plan , enron would likely end up paying edison , i . e . , the present value of the " undercollection " charge would exceed the present value of the lump sum negative ctc payment .
? obviously , with respect to any settlement with edison , we ' re extremely far apart and we ' re therefore considering other options .
? in the meantime , the california puc is engaged in da and px credit - related activities beginning next week and edison will try to get the commission to adopt their proposal .
? we are working with other market participants and gearing up to vigorously oppose edison ' s proposal at the puc .
? we will distribute something on monday describing our approach and tactics at the puc for folks to review and comment on .
? we are scheduled to meet with edison again next thursday to try to knock some sense into them ( the probability of which is low ) .
if you have any questions , let us know .
best ,
jeff