Please find attached the Letter to the Commission and assorted documents
regarding the capacity auction implementation for ERCOT. The PUCT approved
this as a docketed case and as such we will need to file a Motion to
intervene on or before May 21, 2001. I am preparing to file the motion on
behalf of EPMI. There will be a pre-hearing conference on May 22, 2001 that
will set the testimony and hearing schedule. The auction must be completed
by September 1, 2001.

This will be the last opportunity to comment before the PUCT prior to the
first capacity auction. As you review Schedule CA, please be aware that some
of the provisions have two different proposals. We may provide comments on
the merits of one alternative or another or provide an alternative position
that may not be included in the document. The capacity auction rule itself
will not be subject to comments at this time. I will prepare an issues list
and circulate it after the Pre-hearing conference (May 23, 2001).

After the first auction (September 1, 2001), staff will propose changes to
the Capacity Auction Rule and/or the Capacity Auction process as needed.

Thane Thomas Twiggs
Enron Corp
1400 Smith Street
Houston, Texas 77002

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