CONFIDENTIAL
EXHIBIT 99.259
Perot Energy Division & PX
Future Options
MISSION
o Review Perot strategic focus on energy
o Review various options for the future market place in California and the
west to develop scenario responses for either the PX as an institution,
Project Peace, or other combinations of PX assets, talents and market
position.
12/11/00 CONFIDENTIAL 2
Perot Focus
o Overview of Perot focus in energy -- especially electricity and nat gas
o Perot -- beyond outsourcing and application development
o Perot investment interests
12/11/00 CONFIDENTIAL 3
Four Scenarios We Might Consider
o Reintegrate at IOU level self-scheduling of generation and new built
capacity for further security of default load, abandoning current market
structure -- leaves ISO in charge of grid
o Stay the course but allow IOU rates to increase and deny PX special status
past 2 Q 2001
o Integrate PX spot functions into new State managed integrated grid business
(removes ISO)
o Regionalize grid under FERC but integrate IOUs with Muni's in a State
managed reliability, market coalition
12/11/00 CONFIDENTIAL 4
o Reintegrate at IOU level self-scheduling of generation and new built
capacity for further security of default load, abandoning current market
structure -- leaves ISO in charge of grid
[CHART] REMAINING PROCUREMENT PROPORTIONS
WILL LIKELY BE 3/4 FORWARDS --
DIRECTLY SCHEDULED TO LOAD AT ISO
SC SERVICE ONLY -- QUESTIONABLE NEED
OF REASONABLENESS REVIEW RISK -- WACOP
12/11/00 CONFIDENTIAL 5
o Stay the course but allow IOU rates to increase and deny PX special status
past 2 Q 2001
[CHART] IOUs WILL LIKELY
SEEK PORTFOLIO DIVERSITY
OVER 100% RELIANCE ON
PX. OTHERS WILL COMPETE
WITH UNBUNDLED SERVICES
AND LOWER PER TRANSACTION
FEES.
12/11/00 CONFIDENTIAL 6
o Integrate PX spot functions into new State managed integrated grid business
(removes ISO)
LOAD ACTIVITIES OUTSIDE INTEGRATED STATE MARKET
[CHART] STATE MANAGED INTEGRATED GRID MARKET
OPERATOR(PJM LIKE) RUNS IMBALANCE
AND SPOT MATCHING MARKET.
PRICE DISCOVERY BASED ON PAY AS BID
AUCTION OF LMP MODEL USING COST
REFERENCE. OOM STILL NEEDED IN SHORT
TERM.
SUPPLY ACTIVITIES OUTSIDE INTEGRATED STATE MARKET
12/11/00 CONFIDENTIAL 7
o Regionalize grid under FERC but integrate IOUs with Muni's in a State
managed reliability, market coalition
[CHART]
Regional RTO
Imbalance energy
Reliability
Transmission Mgmt
Transmission market
o Procurement
o Load balancing
o SC services to RTO
o AS self-supply & trades
12/11/00 CONFIDENTIAL 8
Main Question
Where Can We Go From Here?
12/11/00 CONFIDENTIAL 9
[Handwritten Notes]
Corp
IT Skill
o O/S
o SI
o SA
o Consulting