Compulsory Sales

FYI. Attached please find a legal cite that indicates that the federal
government would be the guarantor of the sales under the DOE order. I have
no idea if this is correct.

Jim

----- Forwarded by James D Steffes/NA/Enron on 01/24/2001 11:14 AM -----

Rob Bradley
01/24/2001 11:05 AM

To: James D Steffes/NA/Enron@Enron
cc:
Subject: Compulsory Sales

FYI--legal cite for the right lawyer.

- Rob

----- Forwarded by Rob Bradley/Corp/Enron on 01/24/2001 11:04 AM -----

Jim DeLong <JDeLong@cei.org<
Sent by: owner-fme-roundtable@perc.org
01/24/2001 10:52 AM

To: "'Tollroads@aol.com'" <Tollroads@aol.com<, lynns@reason.org,
fme-roundtable@perc.org
cc:
Subject: Compulsory Sales

PSamuels wrote: "It seems outrageous that anyone in this country can be
commanded to supply a product against their will, against their better
commercial
judgment, to utilities that have no known way to pay their bills etc. What
is the constitutional basis for such orders, I wonder?"

I do not doubt that the government can order the utilities to keep supplying
electricity, but I think the federal government is now the guarantor of
payment. See the Supreme Court's 1996 decision in the Winstar case.

James V. DeLong
Senior Fellow -- Project on Technology & Innovation
Competitive Enterprise Institute
1001 Connecticut Ave., NW
Washington, DC 20036
(202) 331-1010 TEL (202) 331-0640 FAX
jdelong@cei.org www.cei.org