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Prepared Direct Testimony of Robert McCullough on Behalf of the ...

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over <strong>the</strong> period <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>the</strong> California crisis. Since we know <strong>the</strong> changes <strong>the</strong>ir generati<strong>on</strong> levels shouldhave made with respect to electric prices, natural gas prices, and NOx prices, we can easilyidentify sudden shifts that can not be explained by <strong>the</strong>se factors. We can expect that major shiftsare unlikely to be explained by a real outage, since this would require multiple units to failsimultaneously.The next chart shows large daily shifts in Reliant generati<strong>on</strong> after changes in market c<strong>on</strong>diti<strong>on</strong>shave been c<strong>on</strong>sidered.16 For example, a sudden shift in gas prices would normally inducegenerators to reduce output. These changes have been factored into <strong>the</strong> analysis - as havechanges in o<strong>the</strong>r critical prices.Date i ~~~~~~~Generati<strong>on</strong>................ ..................................... ...............1211 1i,271ib60111 112000-1210912000 25/i00.6.! ....................(2.695)bwi11200 006/2.6,2000 , .. . . . . . .(2,097)bi,o.u2diiroiroi,2001. ................... ................ (1,573.......... (1.380) ..........bu2.3 6b;ijo5/2 Ol.mOir' ............................................ (1,105).iij~~j~~o&1lj27/2000I,200&,oi6w ... .................. (1,016)............................. .......- .................... (1,003)12/13/2000-12/12/2000...._ ..!........... '......................... (760)0~2sl2001-05/28/2001............................................................'("8,07115/2000711412000 i................................ (738)..................... (693).................................. (687)"""-. ..................... (678).................... (683)1658)As can be readily seen, Reliant generati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g>ten exhibited large changes that could not beexplained by market c<strong>on</strong>diti<strong>on</strong>s. In each case, Reliant's generati<strong>on</strong> reducti<strong>on</strong> was enormously'Bxhibit SEATAC402 and 41 1.

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