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From:john.shelk@enron.com
To:steven.kean@enron.com, richard.shapiro@enron.com, linda.robertson@enron.com,james.steffes@enron.com, tim.belden@enron.com, alan.comnes@enron.com, kevin.presto@enron.com, sarah.novosel@enron.com, ray.alvarez@enron.com, joe.hartsoe@enron.com, tom.briggs
Subject:Barton Subcommittee Passes Energy Bill Without Electricity
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Date:Thu, 12 Jul 2001 12:36:00 -0700 (PDT)

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Late tonight, the Barton Subcommittee passed an energy policy package
(without any electricity provisions other than those related to conservation)
on a bipartisan vote of 29-1. The subcommittee approved an amendment by Mrs.
Wilson to conduct a national assessment and inventory of possible renewable
energy projects.

During consideration of the bill, several amendments of interest and concern
to Enron were offered and withdrawn; they are likely to be offered when the
full Energy and Commerce Committee meets to consider the package next Tuesday
and Wednesday. The amendments in this category are:

1. Mr. Waxman has an amendment he called the "blackout and price gouging
prevention amendment" that would require FERC to modify its June 19 price
mitigation order within 15 days of enactment to impose cost-of-service based
rates (with a rate of return of 15 percent) if an entity is found to be
withholding power from the grid during an emergency. The cost-of-service
rates would thereafter apply to all of the offending entity's sales in the
Western U.S. Several of us were rounding up opponents to the amendment when
it was clear he was going to offer it and before he decided to withdraw it
until full committee. We will continue those efforts before the full
committee vote.

2. Mr. Ganske has an amendment on net metering that he said would promote
wind in Iowa and other renewables (he may wait until an electricity bill
rather than full committee on this bill).

3. Mr. Shadegg has an amendment to exempt natural gas pipelines from the
requirements of the National Registry of Historic Places. He said that
currently this process holds up much needed pipeline expansions that are FERC
approved.

4. Mr. Waxman has an amendment that would require the President to develop
and implement a plan to achieve the greenhouse gas reductions called for in a
UN agreement that President George Bush ("41") agreed to in 1992 (reducing
these emissions to 1990 levels).

Chairman Barton indicated that the Subcommittee will take up an electric
restructuring bill either later this month or early in September, depending
on how long it takes to process this first energy package in the full
committee and in the full House.