From: phillip.allen@enron.com
To: thomas.martin@enron.com, mike.grigsby@enron.com, keith.holst@enron.com, jay.reitmeyer@enron.com, frank.ermis@enron.com
Date: 2000-09-06 11:46:00+00:00
Subject: Wow

---------------------- Forwarded by Phillip K Allen/HOU/ECT on 09/06/2000 
10:49 AM ---------------------------


Jeff Richter
09/06/2000 07:39 AM
To: Phillip K Allen/HOU/ECT@ECT
cc:  
Subject: Wow


---------------------- Forwarded by Jeff Richter/HOU/ECT on 09/06/2000 09:45 
AM ---------------------------
To: Mike Swerzbin/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Sean 
Crandall/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT, Jeff Richter/HOU/ECT@ECT, John 
M Forney/HOU/ECT@ECT, Matt Motley/PDX/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Mark 
Fischer/PDX/ECT@ECT
cc:  
Subject: Wow


---------------------- Forwarded by Tim Belden/HOU/ECT on 09/06/2000 07:27 AM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Kevin M Presto                           09/05/2000 01:59 PM
	

To: Tim Belden/HOU/ECT@ECT
cc: Rogers Herndon/HOU/ECT@ect, John Zufferli/HOU/ECT@ECT, Lloyd 
Will/HOU/ECT@ECT, Doug Gilbert-Smith/Corp/Enron@ENRON, Mike 
Swerzbin/HOU/ECT@ECT 
Subject: Wow

Do not underestimate the effects of the Internet economy on load growth.  I 
have been preaching the tremendous growth described below for the last year.  
The utility infrastructure simply cannot handle these loads at the 
distribution level and ultimatley distributed generation will be required for 
power quality reasons.

The City of Austin, TX has experienced 300+ MW of load growth this year due 
to server farms and technology companies.  There is a 100 MW server farm 
trying to hook up to HL&P as we speak and they cannot deliver for 12 months 
due to distribution infrastructure issues.  Obviously, Seattle, Porltand, 
Boise, Denver, San Fran and San Jose in your markets are in for a rude 
awakening in the next 2-3 years.
---------------------- Forwarded by Kevin M Presto/HOU/ECT on 09/05/2000 
03:41 PM ---------------------------
   
	Enron North America Corp.
	
	From:  John D Suarez                           09/05/2000 01:45 PM
	

To: Kevin M Presto/HOU/ECT@ECT, Mark Dana Davis/HOU/ECT@ECT, Paul J 
Broderick/HOU/ECT@ECT, Jeffrey Miller/NA/Enron@Enron
cc:  
Subject: 


---------------------- Forwarded by John D Suarez/HOU/ECT on 09/05/2000 01:46 
PM ---------------------------


George Hopley
09/05/2000 11:41 AM
To: John D Suarez/HOU/ECT@ECT, Suresh Vasan/Enron Communications@ENRON 
COMMUNICATIONS@ENRON
cc:  
Subject: 

Internet Data Gain Is a Major Power Drain on
                  Local Utilities 

                  ( September 05, 2000 ) 


                  In 1997, a little-known Silicon Valley company called Exodus
                  Communications opened a 15,000-square-foot data center in 
Tukwila. 

                       The mission was to handle the Internet traffic and 
computer servers for the
                  region's growing number of dot-coms. 

                       Fast-forward to summer 2000. Exodus is now wrapping up 
construction
                  on a new 13-acre, 576,000-square-foot data center less than 
a mile from its
                  original facility. Sitting at the confluence of several 
fiber optic backbones, the
                  Exodus plant will consume enough power for a small town and 
eventually
                  house Internet servers for firms such as Avenue A, 
Microsoft and Onvia.com. 

                       Exodus is not the only company building massive data 
centers near Seattle.
                  More than a dozen companies -- with names like AboveNet, 
Globix and
                  HostPro -- are looking for facilities here that will house 
the networking
                  equipment of the Internet economy. 

                       It is a big business that could have an effect on 
everything from your
                  monthly electric bill to the ease with which you access 
your favorite Web sites.

                       Data centers, also known as co-location facilities and 
server farms, are
                  sprouting at such a furious pace in Tukwila and the Kent 
Valley that some
                  have expressed concern over whether Seattle City Light and 
Puget Sound
                  Energy can handle the power necessary to run these 24-hour, 
high-security
                  facilities. 

                       "We are talking to about half a dozen customers that 
are requesting 445
                  megawatts of power in a little area near Southcenter Mall," 
said Karl
                  Karzmar, manager of revenue requirements for Puget Sound 
Energy. "That is
                  the equivalent of six oil refineries." 

                       A relatively new phenomenon in the utility business, 
the rise of the Internet
                  data center has some utility veterans scratching their 
heads. 

                       Puget Sound Energy last week asked the Washington 
Utilities and
                  Transportation Commission to accept a tariff on the new 
data centers. The
                  tariff is designed to protect the company's existing 
residential and business
                  customers from footing the bill for the new base stations 
necessary to support
                  the projects. Those base stations could cost as much as $20 
million each,
                  Karzmar said. 

                       Not to be left behind, Seattle City Light plans to 
bring up the data center
                  issue on Thursday at the Seattle City Council meeting. 

                       For the utilities that provide power to homes, 
businesses and schools in the
                  region, this is a new and complex issue. 

                       On one hand, the data centers -- with their amazing 
appetite for power --
                  represent potentially lucrative business customers. The 
facilities run 24 hours a
                  day, seven days a week, and therefore could become a 
constant revenue
                  stream. On the other hand, they require so much energy that 
they could
                  potentially flood the utilities with exorbitant capital 
expenditures. 

                       Who will pay for those expenditures and what it will 
mean for power rates
                  in the area is still open to debate. 

                       "These facilities are what we call extremely dense 
loads," said Bob Royer,
                  director of communications and public affairs at Seattle 
City Light. 

                       "The entire University of Washington, from stadium 
lights at the football
                  game to the Medical School, averages 31 megawatts per day. 
We have data
                  center projects in front of us that are asking for 30, 40 
and 50 megawatts." 

                       With more than 1.5 million square feet, the Intergate 
complex in Tukwila is
                  one of the biggest data centers. Sabey Corp. re-purchased 
the 1.35 million
                  square-foot Intergate East facility last September from 
Boeing Space &
                  Defense. In less than 12 months, the developer has leased 
92 percent of the
                  six-building complex to seven different co-location 
companies. 

                       "It is probably the largest data center park in the 
country," boasts Laurent
                  Poole, chief operating officer at Sabey. Exodus, ICG 
Communications,
                  NetStream Communications, Pac West Telecomm and Zama 
Networks all
                  lease space in the office park. 

                       After building Exodus' first Tukwila facility in 1997, 
Sabey has become an
                  expert in the arena and now has facilities either under 
management or
                  development in Los Angeles, Spokane and Denver. Poole 
claims his firm is
                  one of the top four builders of Internet data centers in 
the country. 

                       As more people access the Internet and conduct 
bandwidth-heavy tasks
                  such as listening to online music, Poole said the need for 
co-location space in
                  Seattle continues to escalate. 

                       But it is not just Seattle. The need for data center 
space is growing at a
                  rapid clip at many technology hubs throughout the country, 
causing similar
                  concerns among utilities in places such as Texas and 
California. 

                       Exodus, one of the largest providers of co-location 
space, plans to nearly
                  double the amount of space it has by the end of the year. 
While companies
                  such as Amazon.com run their own server farms, many 
high-tech companies
                  have decided to outsource the operations to companies such 
as Exodus that
                  may be better prepared for dealing with Internet traffic 
management. 

                       "We have 2 million square feet of space under 
construction and we plan to
                  double our size in the next nine months , yet there is more 
demand right now
                  than data center space," said Steve Porter, an account 
executive at Exodus in
                  Seattle. 

                       The booming market for co-location space has left some 
in the local utility
                  industry perplexed. 

                       "It accelerates in a quantum way what you have to do 
to serve the growth,"
                  said Seattle City Light's Royer. "The utility industry is 
almost stunned by this, in
                  a way."