Re: Retail Initiative

I had a brief conversation with Vicki about splitting the costs 50/50 on the
legal side to be consistent with the business arrangement. She asked to use
the European operation as a model. At some point, Peter you should just
give Vicki a call and talk it through.

Mark

Peter Keohane
10/23/2000 01:02 PM

To: Mark E Haedicke/HOU/ECT@ECT
cc:
Subject: Retail Initiative

To be brief, this project is percolating but being held up on the following
fronts:

1. ENA/EES issues. I have not been involved so I don't know where it is
at. As request by Dave P., Mark P. has sent a copy of his preliminary issues
memo to Vicki S.

2. Market Achievement Plan for unsold PPAs. The Government is expected to
announce October 31st. This will impact the market in many aspects,
including the viability of competitive retail market options v. regulated
rate options.

3. We have proposals from two law firms. Donahue Ernst & Young and Blakes.
My preference would be DEY for diversification reasons, but DEY may have
unresolvable conflicts which I would have to discuss with you if we are to
proceed. Blakes proposal may also have significant conflicts, which may be
resolvable but which may limit the effectiveness of their representation.
Nonetheless, it seems a decision will not need to be made until the end of
October. In the meantime, Mark P. is working on scoping out legal and
compliance issues, as well as forms.

Peter.