Problem: BODY: Hi all, We spoke to Rick Simpson in Hertzberg's office who related the following: The last meeting of Senate, Assembly, and Governor's staff was last Wednesday. The Senate staff has been advised that the Governor is not interested in having a bill that could only pass the Senate. He wants one that can get 41 votes in the Assembly as well, which means direct access would have to be included. Rick spoke to Brian Kelly of Burton's office on Friday. Brian said they are working on securitizing the interest costs. They are looking at something like 50-60 kw for the core/non-core number which would still be able to be financed even with fewer customers, although the transaction costs would be higher with a smaller customer base. I asked Rick if they expect all of their members to return and he said most of them would. I suggested that it had better be the right ones, or they'd have trouble getting to 41 votes. He said he wasn't sure at this point if a compromise bill could be ready by next Tuesday, but the Assembly is willing to try with the right bill. I spoke to John Burton a few minutes ago who reiterated that he will not look favorably upon including direct access although he understands that some business democrats in the Assembly need it to vote for a bailout. He said he spoke to an Assembly leader this morning who told him that even 78xx would get only 36 votes today if it came up for a vote (it squeeked through on 41). He is considering putting up 78xx for a vote on Tuesday (it will fail) and continuing discussions with the Governor's office after that. He said to tell you all that the bailout bill can't pass next week because it interferes with Scott and Gayle's wedding on the 14th, and coincidentally that is the last day for the Governor to sign or veto bills.
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A: SUBJECT: Special Session Notes

Problem: BODY: We are short 100 mw's in the Ercot Asset book for hours ending 7-22. We want to remain that way, unless the balancing energy market goes haywire. We would need to delete our SC counterparty EL Paso and input a replacement QSE in the portal if this is filled. Enpower shows 100 mw's coming from Ercot imbalance. This deal would need to be cut and replaced with the power that was purchased for bal-day, etc. Thanks,
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A: SUBJECT: Position for tomorrow

Problem: BODY: Attached is the referenced list. Please note the following: James Hardie N.V. is a Netherlands counterparty. They can enter into swap transactions only, no options. As we expand the product list, we will have to note this. Societe Industrielle de Transports Automobile: I have them shut down for now until I speak to the London office tomorrow about bankruptcy/setoff issues in France.
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A:
SUBJECT: Counterparty Approval List for 8/3/00