Brief on Rate Design

Attached is the initial draft of the brief on rate design. As of now it is
still due on Friday the 27th (although the ALJ indicated Friday afternoon
that there may be some slippage until Monday).

Keeping with a discussion that Leslie, Harry and I had on Friday, I have
kept the brief short -- focusing solely on our proposal. As Leslie said in
her e-mail about Friday's hearing, there is alot of animosity towards Enron.
The ALJ is clearly no on our side. Weighing in on issues where others are
carrying the ball (direct access, reallocation of 130% of baseline exemption
revenues) is unnecessary and may hurt instead of help our cause.

Any way, take a look at the brief, and we can perhaps have a call on
Wednesday to discuss.

<<X23764.DOC<<

- X23764.DOC