lengould --
This is off-topic, but I'll answer. Perhaps forum admins can move this to another thread.
SIL is totally unrelated to the Enron scandal. Enron was basically manipulating the market to "create" congestion (and thus increase the value of their energy trades). In essence, they took advantage of loop-holes in market rules that allowed them to artificially inflate prices to benefit themself. I'm sure there are reports available on the web to further describe their actions (a simple google search such as
brings up a lot of links, although you still have to sort through the junk).
Although I haven't read the paper you posted, the cost that you're reading about is surely in regard to cost of building transmission. Basically, as the length of a transmission line increases, so does the cost of building the line, the cost of the losses absorbed by the line, and the cost of supplying reactive power (via capacitor banks, etc.) to support voltage on the line. At some point (as I recall, about 250-300 miles according to most studies/textbooks), the economics dictate that it's better to build high-voltage DC rather than high-voltage AC (DC lines are cheaper to build as compared to AC lines due to materials required, but require expensive converter stations to interface with the grid that bump up the cost quite a bit).
As far as I know, there is no transmission tariff out there that addresses SIL in any way -- typically tariff rates are dictated by the revenue requirements of the grid (determined by value of facilities, costs of operation and maintenance, etc.).