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Enron Mail |
----- Forwarded by Richard B Sanders/HOU/ECT on 02/04/2001 08:44 AM -----
"Fergus, Gary S." <GFergus@brobeck.com< 02/02/2001 08:26 PM To: "A. William Urquhart (E-mail)" <awu@qeuo.com<, "Alan Z. Yudkowsky (E-mail)" <ayudkowsky@strook.com<, "Andrzej Kabarowski (E-mail)" <andrzej_kabarowski@cargill.com<, "Arlen Orchard (E-mail)" <aorchard@smud.org<, "Brian Currey (E-mail)" <bcurrey@omm.com<, "'cfr@vnf.com'" <cfr@vnf.com<, "Cliff Gunter (E-mail)" <cgunter@bracepatt.com<, "Davis Smith (E-mail)" <wdsmith@sempra.com<, "Douglas Butz (E-mail)" <dmbutz@butzdunn.com<, "Douglas Thorpe (E-mail)" <thord@perkinscoie.com<, "Elizabeth Sager (E-mail)" <elizabeth.sager@enron.com<, "Gary Keltner (E-mail)" <gkeltner@jsslaw.com<, "'gbd@vnf.com'" <gbd@vnf.com<, "Gordon P. Erspamer (E-mail)" <gerspamer@mofo.com<, "Harry A. Olivar Jr. (E-mail)" <hao@qeuo.com<, "'hes@vnf.com'" <hes@vnf.com<, "Jane Alfano (E-mail)" <jdalfano@srpnet.com<, "Jean Frizzell (E-mail)" <jfrizzell@gibbs-bruns.com<, "Jeffrey D. (Dan) Watkiss (E-mail)" <dwatkiss@bracepatt.com<, "John Fryer (E-mail)" <john.fryer@pacificorp.com<, "John Heath (E-mail)" <jheath@fulbright.com<, "John W. Stamper (E-mail)" <jstamper@omm.com<, "Ken Irvin (E-mail)" <kirvin@mofo.com<, "'mbrosterman@stroock.com'" <mbrosterman@stroock.com<, "'mgoldstein@stroock.com'" <mgoldstein@stroock.com<, "Michael Helms (E-mail)" <mghelms@jsslaw.com<, "Nancy Loftin (E-mail)" <nancy.loftin@pinnaclewest.com<, "Paul Fox (E-mail)" <pfox@bracepatt.com<, "Phillip Fantle (E-mail)" <phillip_fantle@cargill.com<, "'pjazayeri@stroock.com'" <pjazayeri@stroock.com<, "'psteele@coral-energy.com'" <psteele@coral-energy.com<, "Richard B. Sanders Esq. (E-mail)" <richard.b.sanders@enron.com<, "Richard Beitler (E-mail)" <rbeitler@sempratrading.com<, "Richard Josephson (E-mail)" <rcjosephson@stoel.com<, "Ronald Carroll (E-mail)" <rcarroll@bracepatt.com<, "Shari Stack (E-mail)" <sstack@enron.com<, "Susan Bishop (E-mail)" <sbishop@gibbs-bruns.com<, "'theftler@stroock.com'" <theftler@stroock.com<, "Tim Bolden (E-mail)" <Timothy.Bolden@pinnaclewest.com< cc: Subject: CalPX FERC and Informational Meeting Prepared in Anticipation of Litigation Here is the list of counsel that attended today's conference call regarding public events involving the California Power Exchange Corporation. I delayed publishing this list until 6:00 p.m. because I kept receiving emails from interested parties. I also received the following report from John Stamper at O'Melveny & Myers who represents SEMPRA and San Diego Gas & Electric. John had a conversation with Bob Moore from Millbank representing the California PX. Bob apparently told John that invoices for the chargebacks will be issued on Monday February 5th and will be due and payable by Thursday February 8th or Friday February 9th. John asked for February 9th rather than the 8th. John raised again the possibility of a standstill agreement. Bob Moore reported that the CalPX was amenable to a standstill agreement if everybody agreed. They are worried, however, about being sued for failing to liquidate collateral as soon as they are able etc. John pointed out that the CalPX might be subject to claims from those entities that had their letters of credit drawn down improperly. Bob then reported that the number one option that the CalPX was considering was bankruptcy. It seems to them to be the one forum where they can get all the parties. They are also considering dissolution and invoking the ADR procedure themselves. We have scheduled a teleconference to discuss the FERC options for 11:00 a.m. PST on Monday February 5, 2001. The call in number is 1-800-205-3434, participant code: 653687 I have also received a request to schedule an alternative teleconference for 1:00 p.m. PST to consider non-FERC alternatives. This would include litigation alternatives. We will distribute the dial in number and access code for that call on Monday morning. Proposed Agenda for 11:00 a.m. FERC Option Teleconference: I. Current Status of any proposed filings. Note: Phil Fantle, in-house counsel for Cargill-Alliant sent me a copy of a filing they made with FERC on January 29th. I will send a copy under separate email cover. II. Discussion of specific relevant examples where CalPX has violated the tariff with respect to specific PX Participants. The purpose of gathering these examples is to be able to demonstrate that CalPX is acting arbitrarily and capriciously if that is case. This could include identification of specific instances of inconsistent treatment of PX Participants or inconsistent treatment of the same PX Participant. For example, Phil Fantle pointed out that the way he reads the tariff, if you look at the chargeback formula set forth in Schedule 2, Section 5.3, the ratio for each PX Participant appears to be a fixed number that does not vary after the default of another PX Participant. In Phil's example, if a defaulting participant has a 25% share of the gross MWHs sold in the Core market, during the chargeback process only 75% of the default is paid through chargeback because there is no provision for recalculating the chargeback formula. III. Summary of best arguments of why CalPX application of charge-back is inconsistent with tariff. IV. Impact of Governor Davis' "commandeering" of SCE block forward contracts. <<Cal PX Contact List.DOC<< Thanks Gary ======================================================= This email message is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply email and destroy all copies of the original message. To reply to our email administrator directly, send an email to postmaster@brobeck.com BROBECK PHLEGER & HARRISON LLP http://www.brobeck.com - Cal PX Contact List.DOC
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