Exhibit 99.246
PROCURING AND SCHEDULING ENERGY:
A Draft Turn-key Services Proposal
to the
California Department of Water Resources
By
eNMARKET
February 28, 2001
Proprietary & Confidential Draft
PSC 016414
BACKGROUND
- - CDWR is procuring and scheduling energy for California on interim basis
- - CDWR is establishing CERS unit
- - CERS annual costs $21-26 million, plus software upgrades for CaISO changes
Proprietary & Confidential Draft
PSC 016415
PROPOSAL SUMMARY
- - Turn-key Services by eNMARKET with support from Perot Systems
- Procurement (inc fiscal) and Reliability (Scheduling/Settlements)
- All people and systems
- --------------------------------------------------------------------------------
- - Smaller Scope Options Offered
- - eNMARKET is ex-CalPX employees + others
- --------------------------------------------------------------------------------
- - Perot Systems is leading provider/integrator of energy systems
- Perot Systems has submitted separate Scheduling/Settlements proposal to
CDWR; this proposal is consistent with their Solution 1.
Proprietary & Confidential Draft
PROPOSAL BENEFITS
- - COST
- 30+% less than CDWR projections
- Not subject to CaISO software changes -- which cost PX $3.5 million in 2000
and was projected to cost $8 million in 2001
- - EXPERIENCE/REPUTATION
- --------------------------------------------------------------------------------
- Developed & Operated CalPX, 85% of State power
- Quality Service with integrity
- - FLEXIBILITY
- --------------------------------------------------------------------------------
- Quick start
- --------------------------------------------------------------------------------
- Not incurring fixed cost for interim service -- easily transportable
- - CALIFORNIA SENSITIVITY
- integrate Demand Responsiveness/efficiency & Renewables
- know key California energy players
Proprietary & Confidential Draft
PSC 016417
SERVICE OPTIONS
1. Full Turn-Key
- All people and systems
- Procurement & Scheduling/Settlements
2. Partial Turn-Key
- Procurement people
- CDWR has a separate deal with Perot Systems
3. Management Services
- eNMARKET people manage all services
- CDWR provides worker people and systems
- CDWR has a separate deal with Perot Systems
Location: Sacramento vs So Calif
Proprietary & Confidential Draft
PSC 016418
SCOPE OF SERVICES FOR OPTION 1
Procurement
Energy Commodity
Demand Evaluation & Transmission Acquisition
Short- and Long-Term Contracts -- including analysts
Fiscal
Risk Management/Market Analysis
Power Cost Management & Bond Financing interface
Billing, Regulatory Coordination & Administration
Scheduling/Reliability
Power Operations
Scheduling & Trading/ISO interface
Settlements
IT Support
Note: Scope does not include legal support
Proprietary & Confidential Draft
PSC 016419
FEES FOR OPTION 1
Monthly Subscription: $1.4 million
Volumetric (all MWH > 5TWH/mo) $.04/MWH
Expected Annual Fee: $16.8 million in Alhambra
add 10% for the first year if in Sacramento
CDWR projected cost: $24-34 million*
*includes $3.5 - 8 million for ISO required software upgrades
EXPECTED FEE IS 30+% BELOW CDWR PROJECTED COSTS.
Note: Some CDWR personnel can be included and the subscription fees would be
reduced by their labor costs.
Proprietary & Confidential Draft
PSC 016420
SCOPE OF SERVICES FOR OPTION 2
PROCUREMENT
Energy Commodity
Demand Evaluation & Transmission Acquisition
Short- and Long-Term Contracts -- including analysts
Fiscal
Risk Management/Market Analysis
Power Cost Management & Bond Financing interface
Billing, Regulatory Coordination & Administration
SCHEDULING/RELIABILITY
Not Included
CDWR negotiates separate deal with Perot or provides in another way
Note: Scope does not include legal support
Proprietary & Confidential Draft
PSC 016421
FEES FOR OPTION 2
Monthly subscription: $0.9 million
Volumetric (all MWH > 5TWH/mo) $.02/MWH
Expected Annual Fee: $10.8 million in Alhambra
Add 10% the first year in Sacramento
CDWR projected cost: $15+ million
Expected Fee is 30+% below CDWR projected costs.
Note: Some CDWR personnel can be included and the subscription fees would be
reduced by their labor costs.
Proprietary & Confidential Draft
PSC 016422
SCOPE OF SERVICES FOR OPTION 3
MANAGEMENT SERVICES
Over-All Manager
Procurement
Energy Commodity
- -----------------------------------------------------------------------------
Manager plus Directors & Analyst
Fiscal
Manager plus 2 Directors & 2 Analysts
Scheduling/Reliability
- -----------------------------------------------------------------------------
Manager plus Analyst
Plus 5 Administrative support
Note: Scope does not include legal support or expenses.
Proprietary & Confidential Draft
PSC 016423
FEES FOR OPTION 3
Monthly Subscription: $0.4 million
Volumetric (all MWH > 5TWH/mo) $.01/MWH
Expected Annual Fee for 16 people: $4.8 million in Alhambra
Add 10% the first year in Sacramento
All direct expenses are added to these fees.
This option provides a quality Management team that can react
quickly to market conditions.
Proprietary & Confidential Draft
PSC 016424
Summary of Perot Systems Separate Proposal
- - Solution 1
- Full Scheduling/Settlements Business & IT Operations
(Included as part of eNMARKET'S Option 1)
- - Solution 2
- Scheduling/Settlement Applications hosting
(IT Operations)
- - Solution 3
- Software delivery & integration
Proprietary & Confidential Draft
CONCLUSION
* eNMARKET (& PEROT) PROVIDE CDWR WITH TURN-KEY CERS SERVICES WITH:
-- LOW COST/HIGH VALUE
-- HIGH EXPERIENCE
-- FLEXIBILITY
-- CALIFORNIA SENSITIVITY
AND CAN START ALMOST IMMEDIATELY.
Proprietary & Confidential Draft
PSC 016426