California Market Re-Entry

Jim - at Vicki's meeting today, there was general discussion on risks and
issues surrounding EES new product. Marcus prepared info below for the
group. There may be a meeting in next couple of days about commercial, legal
and regulatory issues with Dave Delainey. I drafted up these omments on
regulatory issues - see attached. -

Jeff - Jeremy Blachman said he'd like to hear more on the status of
core/non-core negotiation. I said it was part of SCE negotiation; one camp
wants to attach past utility costs to departing customers; large customers
want switchback option; likely there will be some compromise on these
issues. Could you give him latest?

----- Forwarded by Harry Kingerski/NA/Enron on 06/11/2001 06:06 PM -----

Marcus Dotson@EES
06/11/2001 04:33 PM

To: Scott Gahn/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, James M
Wood/HOU/EES@EES, Andrew Wu/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, Greg
Sharp/HOU/EES@EES, Mike D Smith/HOU/EES@EES, Lamar Frazier/HOU/EES@EES, Peggy
Mahoney/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Edward Hamb/HOU/EES@EES, Marty
Sunde/HOU/EES@EES, Jennifer Rudolph/HOU/EES@EES
cc:
Subject: California Market Re-Entry

I've attached an internal memorandum as well as the product approval sheet
for your review. Please provide comments as soon as possible.
Once I receive your feedback I will resend so that everyone is on board.

Regards,
Marcus