Enron Mail

From:christi.nicolay@enron.com
To:richard.shapiro@enron.com
Subject:Arizona Public Service v. FERC
Cc:
Bcc:
Date:Tue, 22 May 2001 09:29:00 -0700 (PDT)

Per my voice mail.
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 05/22/2001
04:28 PM ---------------------------


"Dan Watkiss" <dwatkiss@bracepatt.com< on 05/22/2001 10:43:59 AM
To: <christi.L.nicolay@enron.com<
cc: <Sarah.Novosel@enron.com<

Subject: Arizona Public Service v. FERC


I think that you should intervene and possibly take an active role for a
number of reasons. Only if Enron were to win outright in the S.Ct. would
petitioners' challenge in Arizona become moot. But as we have always
cautioned, the likelihood of overturning FERC and getting an S. Ct. decision
putting all transmission on the OATT remains a long shot. It is more likely
that FERC will be affirmed and the DC Circuit's deference to FERC will remain
as to what it must be unbundled. In that scenario, it will be important to
Enron that the Arizona precedent be upheld against challenge. Specifically,
that precedent is that once retail choice is implemented, all transmission
becomes unbundled and subject to the OATT, even if later bundled in a default
standard offer. Absent legislation, this precedent and the lackadaisical
RTOs are the only apparent vehicles for expanding open-access in the near
term.

For these reasons, Enron should intervene at minimal cost and monitor how
well FERC defends itself. If FERC does a good job, that will be the end of
its. However, if FERC does a poor job, Enron should then consider filing a
supporting brief.