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

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Page 63 <str<strong>on</strong>g>of</str<strong>on</strong>g> 76SEATAC-400A. Yes. We found over 900 tie-point-hours <str<strong>on</strong>g>of</str<strong>on</strong>g> such transacti<strong>on</strong>^?^ On August 17,2000, Mirantscheduled an export <str<strong>on</strong>g>of</str<strong>on</strong>g> 25 MW at Palo Verde <strong>on</strong> <strong>the</strong> IS0 system for <strong>the</strong> hour ending at14:OO." For <strong>the</strong> same date and time, <strong>the</strong>y scheduled an import <str<strong>on</strong>g>of</str<strong>on</strong>g> 25 MW <strong>on</strong> <strong>the</strong> LADWPsystem?' This pair <str<strong>on</strong>g>of</str<strong>on</strong>g> transacti<strong>on</strong>s meets <strong>the</strong> definiti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> a 25 MW half Death Star.Q. Can you provide an example <str<strong>on</strong>g>of</str<strong>on</strong>g> how Williams filed schedules that match <strong>the</strong>descripti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> a half Death Star?A. Yes. We found over 8000 tie-point-hours <str<strong>on</strong>g>of</str<strong>on</strong>g> such transa~ti<strong>on</strong>s?~ On January 8,2001,Williams scheduled an export <str<strong>on</strong>g>of</str<strong>on</strong>g> 100 MW at Mead <strong>on</strong> <strong>the</strong> IS0 system for <strong>the</strong> hour ending at22:00.80 For <strong>the</strong> same date and time, <strong>the</strong>y scheduled an import <str<strong>on</strong>g>of</str<strong>on</strong>g> 75 MW <strong>on</strong> <strong>the</strong> LADWP~ystem.~' This pair <str<strong>on</strong>g>of</str<strong>on</strong>g> transacti<strong>on</strong>s meets <strong>the</strong> definiti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> a 75 MW half Death Star.Q. Are <strong>the</strong>se schemes inter-regi<strong>on</strong>al?A. Yes. The basic premise <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>the</strong>se schemes is to take advantage <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>the</strong> ISO's c<strong>on</strong>gesti<strong>on</strong>management methodology by filing circular schedules that pass through <strong>the</strong> IS0 to ano<strong>the</strong>rc<strong>on</strong>trol area.82 In practice, thousands <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>the</strong>se schedules involve Death Stars that rotate"LADWP All Schedules and Prices 2000.csv and All Schedules & Prices for 1-1-2001 to 9-6-20Ol.csv,Exhibit SEATAC-424; CAlSO Transacti<strong>on</strong> Data, Third Quarter 1998 through Third Quarter 2002, Exhibit SEATAC-425."CAISO Transacti<strong>on</strong> Data, Third Quartet 1998 through Third Qua* 2002, Exhibit SEATAC-47.5."LADWP All Schedules and Prices 2000.csv and All Schedules & Prices for 1-1-2001 to 9-6-2001.csv,Exhibit SEATAC424."LADWP All Schedules and Prices 2000.csv and All Schedules & Prices for 1-1-2001 to 9-6-2001 .csv,Exhibit SEATAC-424; CAN0 Transacti<strong>on</strong> Data, Third Quarter 1998 through Third Quarter 2002, Exhibit SEATAC-425."CAISO Transacti<strong>on</strong> Data, Third Quarter 1998 through Third Quarter 2002, Exhibit SEATAC-4:!5."LADWP All Schedules and Prices 2000.csv and All Schedules &Prices for 1-1-2001 to 9-6-2001.csv,Exhibit SEATAC-424.'Vraders' Strategies in <strong>the</strong> California Wholesale Power Markets/ 1SO Sancti<strong>on</strong>s, Christian Yoder andStephen Hall, December 6,2000, Exhibit SEATAC-8.

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