Update

Kay, can you forward the most current PPA to Allyson?

Thanks,
Reagan

---------------------- Forwarded by Reagan Rorschach/NA/Enron on 09/14/2000
05:54 PM ---------------------------

"Duncan, Allyson" <aduncan@kilstock.com< on 09/14/2000 03:37:51 PM
To: "'Reagan.Rorschach@enron.com'" <Reagan.Rorschach@enron.com<, "'Chapman
Tom'" <tom.chapman@enron.com<, "'Mann Kay'" <Kay.Mann@enron.com<, "'Kroll
Heather'" <Heather.Kroll@enron.com<, "'Keenan Jeffrey'"
<Jeffrey.M.Keenan@enron.com<
cc: "Fine, Jonathan" <JFine@kilstock.com<

Subject: Update

Gisele Rankin of the Public Staff called me this afternoon to tell me, as
was not entirely unexpected, that the Public Staff will be seeking (and the
Commission will undoubtedly grant) an extension of time of one week within
which to file its testimony. Her message was very nice. Tom Chapman was in
my office and listened to it, as well as participating in the follow-up
telephone call that I made to her. Gisele was out of the office sick Monday
and Tuesday and had not received the data request responses I had been
sending over, although the Public Staff had taken from it from her office
and circulated it.

She confirmed that, with receipt of the information regarding the turbines
today, there is no information outstanding that is due from us. She said
that she was not in any way assigning blame in the request for an extension;
she was just going to say that the Public Staff needs additional time to
complete its investigation. She opined that it would probably be
preferable, because the testimony that does get filed next week will be
"cleaner;" there will be fewer unresolved issues and less need to file and
amendment. I told her that she could state in her petition for an extension
of time that we did not oppose the request on the condition that it did not
change the October 2 hearing date, and she agreed. She will put that in the
request as well, and sees no reason that the hearing should be delayed.

She would very much like to see the latest iteration of the PPA (Tom, I
believe you indicated that you would take care of this) and said that it
would be ideal if it could be signed by the time the testimony is filed.
Then there would be no issues outstanding. The delay in the filing of the
Public Staff's testimony necessitates a delay in the filing of our rebuttal.
I am hoping that this will not be a problem because all the issues between
us can be resolved and then there would be no need for rebuttal.

While Tom was in my office I contacted Len Green in the Attorney General's
office, to ask him about his intervention and to see if we could answer any
questions he might have. It was clear that he had and has no plans to file
any testimony. He didn't even have any questions until he gave it some
thought. He then asked about NC Power's ability to call on the output of
the plant for system reliability reasons, and whether that would be hampered
by Enron's desire to sell at wholesale. Tom addressed Len's concern
completely by indicating that NC Power had first call on the plant's output.
Len also asked whether the plant would be interconnected to CP & L; his
concern was with regard to increased opportunities for wholesale sales. Tom
said that was a possibility down the line, but not imediately. Len said he
had no further concerns at the moment, but would contact me if he thought of
anything. As I said, I think it highly unlike that he will file testimony,
but wouldn't be surprised if he were to ask the same questions at the
hearing, to get that information on the record (Jeffrey, take note.)

If you have any questions, give me a call. Reagan, I will put together a
package of the information you asked for in your e:mail this morning and fed
ex it to you.