Enron Mail

From:d..steffes@enron.com
To:tom.hoatson@enron.com
Subject:RE: Pennsylvania $147,000 EES Assessment
Cc:
Bcc:
Date:Mon, 22 Oct 2001 07:24:57 -0700 (PDT)

Tom --

Where do we stand with this?

Jim

-----Original Message-----
From: =09Hoatson, Tom =20
Sent:=09Thursday, September 20, 2001 9:42 AM
To:=09Sharp, Vicki; Keller, James
Cc:=09Montovano, Steve; Steffes, James D.
Subject:=09Pennsylvania $147,000 EES Assessment

EES was recently assessed $147,000 by the Pennsylvania PUC as a method of r=
ecovering their costs. Enron's local PA attorney, Kevin Moody of Wolf, Blo=
ck, Schorr and Solis-Cohen LLP, notified us that he has taken the lead for =
a group of natural gas suppliers to challenge the assessments and inquired =
if Enron wanted to be a part of the group. The group includes IOGA (an ass=
ociation of oil & gas suppliers in PA), TXU, Hess, New Power, and 4 others.=
Moody successfully got a postponement of the payments until Oct 16. EES =
is included in the postponement at this time. The options are to litigate =
the assessment (Moody feels we are on solid ground to prevail) or to negoti=
ate a settlement with the PUC where we agree to some assessment to be deter=
mined. Litigating the assessment could cost about $50K - $60K (in addition=
to the $25K to date) whereas settling would obviously be less expensive in=
itially but would provide an assessment for each year going forward. Moody=
id meeting with the PA PUC this Friday to determine what would be the best=
way to proceed (he is hoping to convince them that the statute is quite cl=
ear that they cannot make the assessment and that they withdraw it). We wi=
ll have a better grasp of the situation and clearer path for the direction =
we should pursue after that meeting. I will keep you informed. =20