Q: To the West Desk et al: The FERC's west-wide price cap has been raised to at least $108/MWh beginning today through 30 April 02. Please see the order excerpt below. Although market prices are well below both the old and new cap, the new cap will give the markets more breathing room if there is an unexpected cold snap and/or supply disruption. I am happy to report that the one of Enron's advocacy messages made it into the order: any change to the cap must be applied West-wide. PNW parties and Duke were willing to settle with region-specific caps but FERC rejected that concept in favor of a single, West-wide value. Alan Comnes Relevant Passage: "Effective on the trading day following the date of this order, through April 30, 2002, we will suspend the methodology used to calculate the current mitigated price and substitute the following West-wide winter season methodology. As a starting point, the mitigated price will be set at $108/MWh. This is the actual mitigated price set using the current methodology during the last reserve deficiency on May 31, 2001, based on a gas index of $6.641/MMBtu, a generating unit with a heat rate of approximately 15,360 Btu/MWh and $6.00 for the O&M adder. The new interim mitigated price will supersede the existing mitigated price (approximately $92/MWh), which was set at eighty-five percent of the originally calculated $108/MWh mitigated price for application during non-reserve deficiency hours. We find this adjustment necessary to set the price for the winter period and to track changes in the gas indices. The winter formula will maintain the current heat rate and O&M adder. The one variable in the formula will be tied to the current average of the mid-point for the monthly bid-week index prices reported for SoCal Gas (large packages), Malin and PG&E city-gate. Under the winter season formula, the mitigated price will be recalculated when the average gas price rises by a minimum factor of 10 percent (e.g., to $7.305/MMBtu) effective for the following trading day. The formula will also track subsequent cumulative changes of at least 10 percent (including reductions of 10 percent, but not less than a floor of $108/Mwh). Effective on May 1, 2002, the summer methodology will be reinstated along with the current mitigated price of approximately $92/Mwh for non-emergency periods."
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A: Details on the West-wide Price cap: now $108/MWh through April 30, 2002.

Q: Holli: I have still not received the above-mentioned comments. I have also not received EWEB's proposed form of legal opinion. I will go ahead and blackline the Schedule once again. When the lawyers last spoke, we agreed to execute all docs prior to the end of the year. Would you please call EWEB and inquire about these items? Thanks. Sara
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A: EWEB's comments to the Credit Support Annex

Q: Dear Vince, It is my pleasure to invite you to speak again at "EPRM 2001 Europe", Energy & Power Risk Management magazine's fourth annual European energy risk management congress which will be taking place in Amsterdam on 6 & 7 September 2001. As you know, last year's congress attracted over 200 attendees and provided the ideal opportunity for leading institutions to discuss the key issues and latest developments in pricing, trading and risk management strategies for power and gas. Please find attached a draft copy of the conference programme. I have left the invitation open as I was unsure of your specific topic of interest. Thank you for your time and consideration. I look forward to hearing from you. Yours sincerely,
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A: EPRM 2001 Europe

Q: market_relations@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List: Dear Market Participants 1st Rochdale Cooperative. Ltd. is being removed from the NYISO-administered electric energy markets. The changeover of 1st Rochdale's customers to the provider of last resort, Consolidated Edison Company of New York, will take place on Friday, October 12 for the Saturday, October 13th market. 1st Rochdale had previously posted a sufficient amount of collateral to cover its obligations to the energy market and the NYISO anticipates, therefore, that no losses associated with this transition will be borne by the market. Regards,
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A:
NYISO Market Participant change - 1st Rochdale Cooperative, LTD