Re: AEP

Rogers
,=20
I would welcome your participation. Brad Snyder who is working in Jeff Ade=
r's group will also be attending. Jim Wood originally agreed to go and I a=
m trying to confirm his attendance as well. A few others in sales have als=
o expressed an interest and so we still need to assemble the team. The ite=
ms you listed can all be covered. The purpose of the meeting was to see if=
we could put together a deal that would allow AEP to provide us with whole=
sale power as an interim solution to our inability to do physical deals. A=
lternatively, if we can work with AEP to figure out a way to do our own del=
ivery, so much the better. I view this as a stop gap measure to get us ent=
ry into the market while working on the RTO for a permanent solution. Afte=
r we see how things go with AEP, the thought was for me to contact Cinergy =
to arrange for similar discussions. As you know, Cinergy also has decent s=
hopping credits (although not quite as good as AEP) that are available cont=
ingent on physical delivery. =20

I am attaching for your review the summary I prepared for AEP on the scope =
of our meeting. I am planning the meeting for 2:00pm. Logistical details =
to follow.

Janine

=20

=09Rogers Herndon@ECT 05/22/2001 03:19 PM =09 To: Janine Migden/NA/Enron@E=
NRON cc: Kevin M Presto/HOU/ECT@ECT, John J Lavorato/Enron@EnronXGate Sub=
ject: Re: AEP =09

Janine -=20

I would like to go to AEP on the 7th. Their egos may not allow them to neg=
otiate as fairly with me at the table (due to wholesale side) but I really =
need to get in front of these utilities in person to understand what obstac=
les we will face in the physical delivery world. =20

I am still a novice on these issues but I would like to achieve the folloow=
ing on the physical side, some of which may already exist. Your comments w=
ould be helpful.

Ability to aggregate customers into pool so that we can serve hourly load m=
ore effectively
Would like for AEP to review our aggregated customer list and provide us wi=
th day ahead and hourly load forecasts so that we know how many Mw to deliv=
er each hour
Pre-determined energy imbalance service=20
Pre-determined ancillary fees
Pricing Incentives for us to serve more load
Basic walk-through of standard protocol necessary to serve load physically

These are my quick thoughts. Kevin, do you have any further thoughts.

Thanks,
Rogers

Janine Migden@ENRON

05/22/2001 02:31 PM

To:=09James M Wood/HOU/EES@EES, Dave S Laipple/DUB/EES@EES, Adam Cooper/DUB=
/EES@EES, Nicole Schwartz/HOU/EES@EES, John D Burrows/HOU/EES@EES, Rogers H=
erndon/HOU/ECT@ect, Dana Saucier/DUB/EES@EES, Michael Littman/DUB/EES@EES
cc:=09Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron=20
Subject:=09AEP

AEP has agreed to meet with us to discuss providing us with wholesale gener=
ation. The meeting is tentatively set for June 7th. They would like an it=
emized list or agenda of what we want to discuss so that they can have the =
right people present. Andy Patterson, who handles AEP's retail market acti=
vity transferred the matter to George Rooney in Marketing and Origination.
Janine

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