IN: This is an email
As you are aware, we are in the process of rescheduling the Enron Corp. Board of Directors meeting. Due to the proximity of the Holidays we will hold committee meetings and Board meeting on the same day. Therefore, please let us know today the minimum amount of time you would need for your respective committee meetings. Please be aware that some of our Directors will be joining the meeting via teleconference and we will therefore need to do all mail outs at least one week in advance. As soon as we have a firm date for the Board meeting, we will advise you. Thank you.

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OUT: Board Meeting Update

IN: This is an email
Per my conversation with Credit, it appears there are two Northern States Power Companies. We have already reviewed Northern States Power Company, a Minnesota corporation (cpy ID #265). The counterparty that showed up on yesterday's list is Northern States Power Company, a Wisconsin corporation (cpy ID #161). The Wisconsin corporation is a sub of the Minnesota corporation. I don't know if this makes any difference in your approvals...

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OUT: Counterparty Clarification

IN: This is an email
We currently have $21.4 million in reserve for potential Northwest refunds. $10 million currently sits in the LTCA book and $11.4 currently sits in the LTNW book. During the summer, FERC initiated an investigation into the potential of unjust and unreasonable spot prices in the northwest from December of 2000 through June of 2001. Seatlle City Light, Tacoma City Light, Eugene Water and Electric Board, and Sacramento Municipal Utility District all filed claims at FERC for refunds from EPMI. The claims totaled close to $100 million. However, many of these claims were, on their face, spurious. For example, Eugene Water and Electric Board filed for refund of forward purchases which was clearly outside the scope of FERC's proceeding. We hired consultants from Charles River Associates (CRA) to help us with this process. One of their tasks was to apply the CAISO competitive benchmark pricing methodology to the Northwest market. That is, CRA attempted to reverse engineer the CAISO's methodology in order to estimate our Northwest risk. I was informed by our litigation team that EPMI's realistic potential exposure using this methodology was roughly $30 million. We decided to reserve roughly 2/3 of this amount which came to about $21 million. In September a FERC Adminitrative Law Judge heard the case and submitted a draft decision to the FERC. The draft decision recommended against any refunds. This draft decision is supposed to come in front of the FERC commissioners for approval before the end of the year. If this draft decision is approved, it would be appropriate to remove these reserves.

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OUT:
Northwest Reserves