Re: Utility Business

Thanks a million. Will keep you in the loop on what's going on between now
and Thursday. And don't hesitate if you need anything, or if there's
anything that you want to add to the stew.

Chris H Foster@ECT
11/07/2000 01:07 PM

To: Jeff Dasovich/NA/Enron@Enron
cc:
Subject: Utility Business

Jeff:

Following is a summary of recent EPMI West Power activity with the 3
California utilites

PG&E - EEI Master Agreement in place. As part of their recent RFP, we
completed 2, 50 MW, 5 year, sale transactions for peak hours at $58.40 and
$58.70. They are looking at EOL although they have not transacted on it.
They call regularly for shorter dated quotes. We deal with Claudia Grief who
works in Joe Henri's group. Overall, we have a very positive relationship
and look forward to increasing business.

Edison - Almost finished negotiation of a EEI Master Agreement to allow
transactions. We are haggling about some credit issues, but expect these to
be resolved shortly. We participated in their only RFP. They did not
transact with us or, to our knowledge, with others. They got cold feet. We
work with Jill Horswell, Sean Baker and Bennie Wu. Since master contracts
are not done yet, and no deals have been completed, I would say this
relationship is not as good as PG&E but better than SDG&E. I would expect
that we will be doing regular cash business by the end of the year. They are
looking at EOL.

SDG&E - We have participated in 3 RFPs and have not been successful. We have
been trying to sell them longer dated energy (5 years). We believe they have
bought from others but for small size and limited duration. We work with
Sharon Firooz. We have sent them master EEI agreements and are not making as
much progress in getting them to agree. They prefer using the WSPP contract
rather than EEI. We hate WSPP. We will keep pounding on them until they see
the light but it will likely take longer. Plus they are far more skittish
re: longer dated transactions thatn the other utilites. This said, I would
be surprised if we were not transacting with them on shorter term deals by Q1
2001. They are not using EOL.

Please let me know if this summary meets your needs 503/464-3822.

C