Q: Michael, Sorry for the delay, but I finally have a revised version of your contract from our legal department. Although we have made what appear to be substantial revisions, I believe the key aspects of the agreement remain intact and the revised contract adheres to industry standards. Please let me know what you think.
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A: Revised Contract
IN: See below. this is one of the issues that concerned us more than price caps, because it could limit our ability to move power to other markets in the west. In addition, if you get questions from the analysts on "reregulation" or price caps it is worth pointing out that the high prices prevailing in many markets help our retail sales pitch to end use customers and create opportunities for our wholesale price risk management services . . . even a $250 price cap is 5-10 times what large customers are accustomed to paying.

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OUT: GREAT NEWS ****FERC Order on Morgan Stanley Complaint Against ISO
IN: This is an email
For those of you who didn't have the patience/patriotism to listen to your president for the whole hour and a half last night, let me share a highlight: Clinton announced a new $1 billion program for economic development on the reservations. Langley may be onto something. If he/we can get the first deal done in New Mexico and assuming Gore wins, there may be opportunities to replicate the deal elsewhere. I'm thinking of tribal lands in Minnesota, Wisconsin, S. Dakota, etc. Perhaps Bill should call Chairman Ken and talk to him about changing sides. Notice that I'm not volunteering to make that phone call. DF

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OUT: Albuquerque Project
QUESTION: Attached is the final version of the Standstill Agreement that Larry Witalis and I have been working on. As has been discussed, the Standstill Period would be until June 20th, the LCs would be extended until June 29th and the draw condition re 20 day expiry would be deleted. Please review the attached and let me know if this would be OK to execute tomorrow and send to PG&E for signature. Bill - please confirm the amounts of the LCs. Thanks
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ANS: PG&E Standstill - Final Draft
Just received a telephone message from Jim Grover at TXU. He said that TXU and Enron North America are parties to an ISDA entered on or about November 1995. They have misplaced their copy and would like to get one. Would you call him at 214 875-9214. Thanks! Christy
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answer: TXU Energy
In connection with the Legal costs allocations for 2002, what percentage of your time do you think you would spend on EGM matters? The accounting group who is asking for this information realizes that this is a guess on your part. Thanks, Alan
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answer:
Cost Allocations