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

Page 43 <strong>of</strong> 76SE.4TAC-400MALIN>MEAD230Everything will link up, with the buy from PGE(JD) on top, all the trans andbuylresells in the middle, and the sell to PGE(system) at the endI5These are instructions on how to enter a Death Star transaction into Enron's scheduling computerprogram. Much <strong>of</strong> the shorthand involves instructions on the entry <strong>of</strong> the transaction intoEnpower (Enron's California transaction s<strong>of</strong>tware) or CAPS (s<strong>of</strong>tware to submit schedules to theISO.)The six steps translated into normal English are as follows:File a schedule over IS0 transmission paths from Mead to the CaliforniaOregon Border.I6Washington Water Power (Avista) sells at COB and repurchases atPortland.Enron buys and sells based on Dow Jones Mid C Index.PGE transfers the power to John Day.Transfer the power back to Mead over LADWP existing transmissionrights on the IS0 system.This transaction will make it appear that energy is being exported out <strong>of</strong> California to the PacificNorthwest?' This will "capture" congestion fees at Path 15, Path 26, and the California Oregon"The FINAL PROCEDURES FOR DEATH STAR, disregard the other 2 mails, Michael Driscoll, May 5,2000, Exhibit SEATAC-423.j6Malin is the physical location <strong>of</strong> the substation that connects PGE and BPA's 500 kV lines with Califomia.Mead (not "Lake Mead'') is a market hub in Nevada."An interesting - facet to each <strong>of</strong> these schemes is that Enmn was certain that the IS0 would not connectthe dots in these transactions. This is all the more surprising since the IS0 schedules both sides <strong>of</strong> the tratlsaction.