Enron Mail

From:elizabeth.sager@enron.com
To:brenda.whitehead@enron.com
Subject:please print - PRIVILEGED AND CONFIDENTIAL: ATTORNEY WORK PRODUCT
Cc:
Bcc:
Date:Thu, 9 Mar 2000 06:08:00 -0800 (PST)

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 03/09/2000
02:07 PM ---------------------------


"JOHN G KLAUBERG" <JKLAUBER@LLGM.COM< on 03/09/2000 12:14:39 PM
To: Elizabeth Sager/HOU/ECT@ECT, Janet H Moore/HOU/ECT@ECT
cc:
Subject: PRIVILEGED AND CONFIDENTIAL: ATTORNEY WORK PRODUCT



Elizabeth & Janet:

Attached is a draft of the memo we spoke about the other day. We tried to
come up with as many arguments as possible, recognizing the strong commercial
desire to put in the second interconnect. As we have discussed, certain
language in the Interconnect Agreement is troublesome, generally due to the
fact that it does not appear that a second interconnect was contemplated at
the time the project was initially developed. Nonetheless, we believe that
Caledonia does have a number of arguments in favor of the position that it
should be able to build the second interconnect without a contractual block.
The strength of some of these arguments will turn in large part on further
factual development with the commercial group, as noted in a number of places
in the memo.

Please let me know when you wish to follow up. And, as I noted in my
conversation with Elizabeth this morning, there is a possibility I may be in
Houston next week and perhaps we could meet with the commercial folks at that
time. I think it would be advisable to walk through the various possible
scenarios/strategies with them so that we have the benefit of the TVA
"history" and likely responses of TVA to some of the arguments noted in the
memo.

Thanks John

- 6Z3601!.doc