Senate Action on DOD Conference Report

Tonight by a vote of 91/2 (although Senator Wellstone was asking to switch
his vote; so the final vote may end up being 90/3) the Senate passed the
Conference Report on the DOD Reauthorization, H.R. 4205. With the
overwhelming majority votes in both the House and Senate this week, the bill
will now be enrolled and sent to the President for signature.

Although the statutory language and report language is a clear victory for
EFS; we did not in the end have the draft colloquy entered into the record
regarding the enforcement interpretation. Seems EEI's lawyers had submitted
a colloquy of their own. Thus, our colloquy successfully served the purpose
of blocking theirs which we should list as a "victory" given that their
colloquy would have been damaging to us. So in the end, Enron achieved all
its legislative goals while EEI was unsuccessful in even gaining a statement
for the record.

Off the record, we did gain acceptance for the issue raised in our colloquy
by DOD and they stand ready to defend their enforcement authority; possibly
at the upcoming NARUC meeting.

Bill signature; and thus, Public Law enactment, could occur as early as next
week. We will keep you advised as to when this occurs. Again,
congratulations to the team for a successful legislative effort against some
stiff odds.