Protests of utility market-based rates

Christi, please provide me with a timeline of when you expect to be filing
protests against each utility. As well, please ensure that both Kevin and I
sign off on the filing before it goes out.

Regards

---------------------- Forwarded by David W Delainey/HOU/ECT on 11/08/2000
11:51 AM ---------------------------

From: Christi L Nicolay 11/08/2000 09:58 AM

To: David W Delainey/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Edward D
Baughman/HOU/ECT@ECT, Fletcher J Sturm/HOU/ECT@ECT, Janet R
Dietrich/HOU/ECT@ECT, Jeffery Ader/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT,
Ozzie Pagan/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Bruce
Sukaly/Corp/Enron@Enron, Doug Gilbert-Smith/Corp/Enron@ENRON, James D
Steffes/NA/Enron@Enron, Jeff Brown/NA/Enron@Enron, Janine
Migden/NA/Enron@Enron, David Fairley/HOU/ECT@ECT, Kerry
Stroup/NA/Enron@Enron, Roy Boston/HOU/EES@EES, Susan M
Landwehr/NA/Enron@Enron, Joe Connor/NA/Enron@Enron, Steve
Montovano/NA/Enron@Enron, Robin Kittel/NA/Enron@Enron, Ron
McNamara/NA/Enron@Enron, Tom Chapman/HOU/ECT@ECT, Daniel
Allegretti/HOU/EES@EES, Howard Fromer/NA/Enron@Enron, Dennis
Benevides/HOU/EES@EES, Aleck Dadson/TOR/ECT@ECT, Kevin M Presto/HOU/ECT@ECT,
Tom May/Corp/Enron@Enron
cc:
Subject: Protests of utility market-based rates

Summary of emails detailed below:

Dave Delainey and Kevin Presto have authorized Enron protests of utilities
seeking to renew their market based rates for power sales. Enron has already
filed detailed protests against AEP, Entergy, and Southern Energy Marketing.
We also plan to file a detailed protest of Hydro Quebec.

Protests of the following utilities will be very short (shown below) stating
that FERC should condition the continuation of market based rates upon the
utility joining a valid fully functioning RTO. ((Ameren, FP&L, LGE/KU,
Cinergy, TXU, VEPCO, and Duke). Protests will be due over the next few
months.

Please let me know if you want to receive copies of the protests or drafts.
CN

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 11/08/2000
08:31 AM ---------------------------

Christi L Nicolay
11/08/2000 08:45 AM
To: "Susan Buchheit" <sbuchheit@bracepatt.com< @ ENRON
cc: <snovose@enron.com<@ENRON, James D Steffes/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON,
npickover@bracepatt.com, dwatkiss@bracepatt.com, Richard
Shapiro/NA/Enron@Enron

Subject: Re: market-based rate

Kevin said this looks good w/ these changes:

2nd para; "Commission an (NOT AND) Open-Access Transmission Tariff"
and last para: Add after December 15, 2001 deadline "or if a transmission
owner does not join a fully functioning RTO that meets all of the
Commission's requirements"

This needs to get filed today, if possible, as a request for rehearing in
Ameren Docket ER00-2687-001. Note: There were no interventions or protests
in this docket and FERC issued a letter order accepting the filing on Nov.
2. What is odd and should be pointed out for why we are intervening at this
time is that there may have been a problem with when or how the notice was
issued. Neither Nancy P. or our paralegal Jan saw this notice. I found it
after the intervention date. It is certainly odd that there were no
interventions in this at all. One concern for Dan/Joe/Jim: Since this is
going in as a late intervention and request for rehearing, what is the
likelihood of the Commission tossing the whole idea out quickly because of
the late intervention, which may hurt our overall cause.

Next, this is the list of those utilities that we plan to file this pleading
in (We are not protesting Xcel/NSP/Pub Serv of Co):

FP&L MAYBE Docket No. 97-3359-003 Protests due 11/20
Cinergy (due in Jan)
TXU (due in Jan)
VEPCO (due next Aug)
Duke (due next Dec)
LGE/KU (due next March)

NOTE: Kevin wants to do a full blown assessment against HQ , which is due
sometime this Nov. Please keep all eyes out. for the HQ filing.

THANK YOU.

"Susan Buchheit" <sbuchheit@bracepatt.com< on 11/07/2000 03:35:33 PM
To: <christi.l.nicolay@enron.com<, <snovose@enron.com<
cc:

Subject: market-based rate

Attached are Dan's comments regarding market-based rates.

- 0133731.01