Spreadsheet: james_steffes__12946__Monthly Report 10-5-2001
Sheet: Sheet1

 | ENRON NORTH AMERICA
 | GOVERNMENT AFFAIRS REPORT
 | Support Type | Deal Name | Responsible  Person | Impact ($[NAME]) | Background / Key Issues | Updated | Strategies/Comments/Next Actions
 | Regulatory Risk | RISK Analytics -Ibrahim
 |  | URM Process | [NAME] | 112 | Determination, implementation and testing of URM regulatory support | 2001-10-05 00:00:00 | Ongoing
 |  | Global Market Process | [NAME] |  |  | 2001-10-05 00:00:00 | Ongoing
 |  | International Database | [NAME] |  | Update the International Regulatory Risk Sheets with RAC.  See update for TGS under [NAME] | 2001-10-05 00:00:00 | Test report by the end of Sept. 2001 for 3 largest assets.
 |  | Assesment of GA role in Enron's Risk Management Policy | [NAME] |  | A report on Enron's RM Policy and determinination of GA role in it. | 2001-10-05 00:00:00 | [NAME] expected bu October 23.
 |  | Technical Regulatory Support to Enron's Assets                                  (ITRS) | [NAME] |  | Extend regulatory technical assistance to electricity and gas assets in SA, CA, Asia, Nicaragua, and Puerto Rico | 2001-10-05 00:00:00 | Presentation is ready, but meeting has been rescheduled.
 |  | [NAME] | [NAME] | 48 |  | 2001-10-05 00:00:00 | Made evaluation including the following steps:   1. Studied regulations in force;  2. Studied company economics;  3. Identified main regulatory risks;  4.  Selected risks to be measured;  5. Defined risk evaluation methodology; 6. Developed two models to measure the risk;  7. Talked several times with the critical sources of information including both the business unit and regulator;  8.  Identified mitigants.
 |  | EES - Kingerski
 |  | Retail Tariff Open Positions | [NAME] | -300 | Enron currently has retail tariff short position of 250??MM mwh throughout 30 Utilities in North America.   #1 = [NAME], #2 = ComEd, #3 = PG&E, #4 = …... | 2001-10-05 00:00:00 | Monthly review of largest positions.
 |  | Gulf Power Rate Case | [NAME] |  | Gulf Power has filed a rate increase that will affect EWS retail positions.  Key deal is with ECS for supply of compression services to FGT. | 2001-10-05 00:00:00 | Reviewing case filing and developing case strategy.  Case involves interests of EWS, ECS, FGT and EGM.
 |  | FERC PNW Refund Proceeding | [NAME], Commercial Contact -Belden | -100 | FERC has opened investigation into whether or not refunds should be provided by sellers in Pacific Northwest markets from Dec 25, 2000 through June 20, 2001.   Key issues include (a) definition of spot market, (b) calculation of "competitive" proxy price, and (c) allowance for purchase - sale netting.                    -Case per July 25 FERC refund order | 2001-10-05 00:00:00 | ALJ has issued recommendation and ruled in Enron's favor on all issues except definition of spot market.  FERC will act by end of October
 |  | Formation of EISB | [NAME] | prevent the need have Enron representation in multiple standards setting forums | NERC could retain control of both reliabilty and market interface issues.  This would severely limit the EISB open and inclusive process to resolve the disputes in the wholesale electric industry and the authority of RTOs over reliability as required in Order No. 2000 . | 2001-10-05 00:00:00 | Working through EPSA and NERC related coalitions to challenge utilities who are preventing the ability for EISB to encompass both commercial and relaibility related standards.
 |  | Nevada position; development of rules re:  AB 661--ablity to sell new electric resources to customer | PJK, [NAME] | ? | AB 661 was pased in the spring of this year.  It allows customers to leave NPC and Sierra if their departure doesn't "harm" other customers and if they purchase power from "new electric resources" | 2001-10-05 00:00:00
 |  | SW Gas Rate Case | [NAME] |  | SW Gas has billed EES $8 million or so in imbalance fees because gas scheduled to be delivered into SW was curtailed by El Paso. | 2001-10-05 00:00:00 | [NAME] filed and hearing was conducted.  Negotiations were conducted but without much success.  Awaiting AZ PUC decision.  Case in Briefing stage.  Also trying to get better transportation rules.
 |  | Georgia Power Rate Case | [NAME] |  | GP has filed a plan to implement automatic rate increases and refund certain weather-related revenues. | 2001-10-05 00:00:00 | Hearings begin 9/10.  Enron will file testimony to help support book position and advocate for weather risk management.  Working with weather desk to quantify illustrative weather products.
 |  | TX Implementaion Cases | [NAME] |  | Implementaiton dockets still open on how stranded costs will be handled. | 2001-10-05 00:00:00 | Monitoring.  Big issue is whether negative stranded costs will be allowed.
 |  | IL Rate cases | [NAME] |  | [NAME] and IP have both filed rate cases that would increase rate to shopping customers by more than to non-shoppers. | 2001-10-05 00:00:00 | Providing technical and case maangement support to EWS and [NAME].  Testimony has been filed in [NAME] case.  IP strategy is to object that increase is illegal and violates restructuring law.
 |  | CA PUC cases | [NAME] [NAME] |  | PUC continues to debate and study how to assess rate increases and when to kill direct access. | 2001-10-05 00:00:00 | Providing technical and case management support to GA West Group as appropriate.  San Diego rate increase implemented without affect to Direct Access; based on 9/20 PUC order.
 |  | Marketing Affiliate Rule NOPR | Lawner/Cantrell | 58 | The NOPR was issued on September 27.  A team, lead by [NAME] and [NAME], will develop comments. | 2001-10-05 00:00:00 | Team is holding initial meeting 10/5.
 |  | WSCC - Kaufman
 |  | CAISO Price  mitigation compliance: generation service customer assistance | [NAME]; Commercial Contact- [NAME] | $millions | CAISO and FERC require cost justification for "above-cap" sales | 2001-10-05 00:00:00 | Assist clients in making filings on their own behalf                                                                                        Next Step - monitor market activity and assist in cost support as necessary.                                         Create workable must-off mechanism.
 |  | CAISO Price mitigation compliance | [NAME]; Commercial Contact- Belden | small immediate impact, but CAISO rules keep Enron from participation | CAISO has implemented various aspects of the FERC rule incorrectly: it is not requiring a creditworthy buyer (ie:  CDWR to buy the full net short position), it is requiring thermal units to make a power available at a loss | 2001-10-05 00:00:00 | Rehear FERC decisions and protest CAISO compliance filings.  Provide information to media.                                                                                                                                                                       Next Step - monitor and repond as appropriate                                                                                                     Feed info to FERC on ISO's violations of its own tarriffs.
 |  | California DA Suspension Date | [NAME] |  | CPUC has published Proposed Decision that would retroactively end DA as of July 1, 2001. | 2001-09-05 00:00:00 | 1.  Work with other members of AReM coalition to convince CPUC that this action would be disastrous and result in unnecessary legal fights.
 |  | Federal - Robertson
 |  | FERC CA Refund Proceeding | [NAME], Commercial Contact-Belden | $100.00 + | Case per July 25 FERC refund order; refund claims here are primarily made by Tacoma, Seattle, Port of Seattle, and CDWR | 2001-09-05 00:00:00 | Primary objective is to minimize refunds because the "benchmark" is ill supported and because changing rules after the fact is bad for competitive power markets.  More tactically: keep California out of the case; verify refund numbers computed by plaintiffs make sure that sales made above benchmark are properly netted from sales made above benchmark (so called ripple claims).  Call for further hearings if ripple claims are not fully heard.                                                                                                                                                      Next Step - Hearings early September; possible future hearings
 |  | Cal PX Bankruptcy | [NAME] | -40 | [NAME] is utilizing its tariff in a manner that will have severe financial costs for EPMI. | 2001-09-05 00:00:00 | 1.  ENA Legal has secured Injunction.  2.  Govt Affairs is seeking FERC actions to support overall position that [NAME] is inappropriate action of [NAME].  3.  Contact with CDWR ([NAME]) to complete the confiquration to include LCs.  4.  Governor [NAME] "expropriation" of SCE / PG&E Block Forward positions still unclear in terms of economic implications.
 |  | Canada - Hemstock
 |  | Alberta PPA | [NAME] |  | Modify Balancing Pool begins to dispatch Clover Bar PPA to more closely align Variable Cost with "no harm" commitment rather than try and minimize overall cost. | 2001-09-05 00:00:00 | 1.  Long-term plan for sale of unsold PPAs (2300 MW of capacity) by Balancing Pool to a competitive market participant.  2.  Short-term resolution of current offer strategy of unsold PPAs by Balancing [NAME] not a true variable cost.  3.  [NAME] (Transmission Administrator) Tariff Application seeks to incorrectly charged to PPA Buyer instead of PPA Owner.  4.  Power Pool Rule Changes to enhance supplier ability to engage in physical bilateral contracts (direct sales).  5.  Co-ordination of outage planning between TA and IPPs, PPA Buyers and PPA Owners.  6.  Power Pool Rule Change that prohibits importers from setting pool price and distorts Alberta Power Pool Price downward.
 |  | Ontario Market Opening | [NAME] |  | Seek Government commitment to "date certain" for market opening. | 2001-09-05 00:00:00 | Lobbying Ontario government to confirm market opening date.
 | [NAME] | Federal - Robertson
 |  | Northeast RTO Mediation  NYISO RTO | [NAME][NAME] |  | Key issues - 1.  Circuit breaker for prices.  2.  Interfaces with PJM and NE-ISO.  3. RTO filing. | 2001-09-05 00:00:00 | Comments filed 2/22/2001.  Two pleadings filed.  One dealing with the flaws in the NY proposal.  The other pleading regarding size and scope to form one NE regional RTO.  Intend to file protests to package of measures imposed- 18 month extensions of 1,000 bid cap, temporaneous extraordinary measures authority extended to 10/2002.  Meeting held 3/1/2001 with suppliers to create coalition to educate policy makers and public on benefits of competition.  Key next step - Coalition meetings with policy makers to ensure reasonable actions if power prices spike.
 |  | Federal Wholesale Electricity Restructuring Legislation | [NAME] |  | President [NAME] and key members of Congress intend to take up energy matters upon the return from August recess.  Key issues for Enron include (1)  mandate authorizing FERC to regulate bundled retail transmission service, (2) clear authority for FERC to order RTOs, (3) PUHCA reform, (4) PURPA reform, (5) NERC reform. | 2001-09-05 00:00:00 | [NAME] bill introduced 2/26/01 - insufficient electric transmission authority discussed for Open Access.
 |  | EPMI v. FERC | [NAME] |  | EPMI has sued FERC to force FERC to exercise its jurisdiction over "all" transmission service, including transmission used in bundled retail sales. | 2001-09-05 00:00:00 | Oral arguments before US Supreme Court set for October 10, with [NAME] expected around March 2002.
 |  | Bankruptcy Reform - Fed. | [NAME] |  | Two sections of the Bankruptcy Reform Bill that have importance to Enron                                                                                                    1) Financial contract netting provisions     and 2) a technical corrections amendment regarding production payments | 2001-09-05 00:00:00
 |  | Trade Promotion Authority -Fed. | [NAME] |  | House Speaker [NAME] (R-IL) said that he didn't expect the House to vote on TPA until next month.  However,  Senate Finance Chairman [NAME] (D-MT) has stated that he will wait to introduce his  measure until after the House took action.  Results in a a lesser likelihood that a bill will be done this year. | 2001-09-05 00:00:00
 |  | ENA/EES - Steffes
 |  | Legislation - Title on Reliability | [NAME] | Limit the authority of NERC as a electric standards setting orgnaizaion | NERC's porposed language defers too much FERC authority to a Self Regulating Organization.  Need to simplify language to ensure FERC oversight of both commercial and reliability practices. | 2001-10-05 00:00:00 | Provide technical background for [NAME] and other legislation advocates to make our case against the NERC language.
 |  | SE RTO mediation | [NAME] | a new market for the SE for EES and EPMI | monitor and provide technical support for arguments related to proposed operating and scheduling procedures that would discriminate against non-operator entities | 2001-10-05 00:00:00 | Provide comments and NERC related information to SE RTO Mediation team
 |  | RTO Scheduling Process Waiver | [NAME] | If unchecked, RTOs would be able to apply NERC rules to justify the need for retaining multiple control areas | limit control-area operating utilities ability to leverage NERC reliability requirements to justify multiple control areas within RTOs | 2001-10-05 00:00:00 | Restrict any changes to NERC policies from presecribing RTO - control area structural relationships .  [NAME] for the use of the CACTF Reliability Model in describing RTO - Control area relationships to monomize control area authority.
 |  | DSTAR | [NAME] | Level access to transmission market for EES and EPMI in [NAME] region | Facilitation and implementation of [NAME] with focus on independence of board, simple and functional congestion management and real time energy market(s), and maintaing focus on reduced influence of incumbent PTO's in region. | 2001-09-05 00:00:00 | Actively commenting on Appendices P and Q (Planning and Interconnections.  Developing consensus with other marketing/generating companies to file comments to FERC within the next week about the anti-competitive behavior of PTO's (prior to the DSTAR Tariff
 |  | WSCC/[NAME] | [NAME] | Working to develop ways to operate WSCC markets (3) seamlessly as a single market | Keep focus of the group on current proposal problems.  Included are, fragmented: rights acquisition, rights charateristics, tranmission products, scheduling and business practices. | 2001-09-05 00:00:00 | Working within Seams Task Force and consulting with [NAME], introducing a concept paper which outlines how market could be developed by shared technology and business practices.  The result, if adopted would be a virtually seamless marketplace for EPMI to conduct business WSCC wide
 |  | Proposed Rulemaking on Public Utility Filing Requirements | [NAME] | unknown | Assist ENA Legal in developing Enron's comments on NOPR | 2001-09-05 00:00:00
 |  | InPower Filings | [NAME] |  | EPMI will have authority to support Industrial generation participation in Wholesale markets. | 2001-10-05 00:00:00 | FERC action is expected within 60 days granting EPMI authority to act under InPower.
 |  | Southeast RTO Mediation | [NAME] |  | Facilitation and implementation of one RTO with good independence and congestion management real time energy market | 2001-10-05 00:00:00 | Judge issued mediation report on 9/10.  EPMI responded 9/26.  Expect order from FERC in October  Will respond accordingly at FERC, legislatively, PR.
 |  | FERC Reporting for Natural Gas Sellers into California | [NAME] |  | FERC is requiring reporting of natural gas sales into California, initially for a six-month period beginning 8/1/01 with the intention of extending until 9/30/02. | 2001-10-05 00:00:00 | The report for ENA was submitted on the October 1 due date.  Information for the EES report has to be obtained from the third-party vendor, CSC, and the report will not be completed until at least 10/15.  A letter was sent to FERC advising of the delay.
 |  | E-Tag 1.7 | [NAME] | Unknown.  Should aid in reducing Energy Imabalnce charges, excess transmisison costs, and overall trasnaction overhead. | Implementation of Key market intiatives, including enhanced ability to stack transmission, ability for PSEs to adjust trasnactions, and ability of PSE to extend trasnacitons | 2001-09-05 00:00:00 | Working on addressing implementation details, including development of critical-path registry.  Current schedule is for mid-November implementation, but may slip due to technical concerns, closeness to winter peak, and back-end issues.
 |  | ARTO Involvemnt | [NAME] | Unknown.  Risk reduction as being prepared for market operations. | Market trials for ARTO. | 2001-09-05 00:00:00 | Have attended operational trials training.  Will be notified of operational trials informaiton as it continues to develop.
 |  | MISO Involvement/                   Development | [NAME] | Unknown.  Risk reduction as being prepared for market operations. | Need to learn market structure.                                                                              Seeking to implement competitive markets in the Midwest under the RTO umbrella | 2001-09-05 00:00:00 | Working with MISO to get special training.  Have tentative agreement to be given "Security Coordinator" acess during trials.                                                                                                                                                                             Seeking Midwest Mediation in an effort to simplify trading rules through the creation of one RTO (combine the best of MISO, Alliance and SPP)
 |  | [NAME] in IDC | [NAME] | Unknown.  Should change curtailments to produce more "fair" cuts. | IDC currently violates [NAME] and does not curtail based on transmisison priority when in a stack; instead, curtails based on lowest priority, due to comlexity. | 2001-09-05 00:00:00 | Arguing in technical and policy forums that this violates pro-forma.  Have not yet seen much results.  May need to be filed as protest/cease&desist/etc…
 |  | Counterflow Credits in IDC | [NAME] | Unknown.  Should develop flowgate credit market. | Essentially seeks to creat comparability between PTP and NNL service.  Currently, Network service customers are curtailed based on the net impact of all their trasnactions, while PTP are curtailed based on the impact of EACH of their transactions.  This proposal seeks to allow for the same treatment, and further provide for the trading of these impacts to serve as protective instruments. | 2001-09-05 00:00:00 | Forwarded to [NAME] for introduction and potential sponsorship in standing committees.
 |  | MISO / Alliance RTO | [NAME] |  | Transmission access & market design. | 2001-09-05 00:00:00 | FERC Settlement Conference held re MISO/Alliance merger.  Outcome - RTOs will be separate but will work together to form a seamless market place.  Enforcement of Ohio Settlements calling for nondiscriminatory access under the same tariffs, terms and conditions.  Meetings with PUC chairman and legislators held.  Complaint submitted to enforce OH settlements.  Working on proposed tariff revisions.
 |  | SPP RTO | [NAME] |  | Transmission access & market design. | 2001-09-05 00:00:00 | SPP is working at detailed Market Structure issues.  Govt Affairs leading the drafting efforts.  SPP Board vote delayed from February on key market rules - pursuing votes.
 |  | Argentina Power Deregulation | [NAME] |  |  | 2001-10-05 00:00:00 | Decree 804 was abolished by the Congress
 |  | Argentina Natural Gas Deregulation | [NAME] |  |  | 2001-10-05 00:00:00 | Lobby Undersecretary of [NAME] to guarantee its effective implementation.  He is doing a road-show to get support for the reform.  Enargas approved Resolution #2368, that determines that the threshold to purchase natural gas from an alternative supplier (500 m3/day) refers to the monthly average volume (as claimed by Enron) and it is not a minimum daily obligation (as claimed by the distcos)
 |  | EES - Kingerski
 |  | AB 661 rule development | PJK, [NAME] |  | AB 661 was pased in the spring of this year.  It allows customers to leave NPC and Sierra if their departure doesn't "harm" other customers and if they purchase power from "new electric resources" | 2001-10-05 00:00:00
 |  | Ohio Operational Support | [NAME] |  | PUC conducting workshops on implementation issues, such as minimum stay, purchase of receivables, slamming, UDC billing | 2001-10-05 00:00:00 | Reviewing utility filings.  Preparing interventions on behalf of EES.  Meeting with Staff and commissioners as appropriate.
 |  | Marketing Affiliate Rule | [NAME] |  | FERC is considering revisions to its gas marketing affiliate rule. | 2001-09-10 00:00:00 | Meeting with FERC staff occurred Aug. 28.  A NOPR is expected soon and we will prepare comments.  Working with [NAME] and [NAME].
 |  | New York Operational Support | [NAME] |  | EDI set to be implemented by year end.  Industry working group involved. | 2001-09-05 00:00:00 | Progress is slow because of utility reluctance.  Enron created [NAME] sub-group to focus support and concerns. EDI is identified by EES as a akey issue.
 |  | ERCOT retail rules | [NAME] |  | Act as chair of retail rule subcommittee.  Handling integration of retail needs with wholesale market rules. | 2001-10-05 00:00:00 | Working through standardized electronic transactions.  Early problems associated with TX pilot being addressed.
 |  | TX Operational Support | [NAME] |  | Telemarketing rules, customer lists, registration as a supplier, ballot procedures | 2001-10-05 00:00:00 | Registered to participate in TXU and Reliant areas.  Working to identify applicable telemarketing rules.  Ballot procedure needs to go forward; Staff may be trying to dealy until next year.
 |  | NV Open Access Implementation | [NAME] |  | Industry subcommittee is writing implementation rules that will be submitted for PUC approval. | 2001-10-05 00:00:00 | [NAME] is member of subcommitte.  Rules need to address how departing customers do not act to detriment of other customers, as required by law.  Initial meetings have been held and rule is being written.
 |  | [NAME] | [NAME] |  | ACC conducting investigation into hedging practices of utilities. | 2001-10-05 00:00:00 | Participated in first workshop.  More will be scheduled soon.  [NAME] is to promote use of hedging.  Part of national effort, in support of [NAME].
 |  | El Paso Cases (FERC) | [NAME] |  | Several cases pending involving reallocation of receipt points, system expansion, and demand charge refunds for unavailable capacity. | 2001-10-05 00:00:00 | Comments will be filed Oct 2 on reallocation of receipt points and comments have been filed in other cases. Continuing to monitor as appropriate.  Working with [NAME] and EES/ENA as appropriate.
 |  | Redetermination of "Market Power" for purposes of granting market based rate certificates | Commercial Contact -Belden | Not immediate, but impact of losing market based rate authority is large | Massey (and later [NAME] and Wood0 have expressed the disire to re-examine the current "hub and spoke" method of determining if markets are sufficiently competitive to allow for a finding of no market power and the issuance of market based rate certificates. | 2001-09-05 00:00:00 | Push for transmission open access to ensure the most numerous and competitive markets as possible.                                                                                                                                              -Next Step. EPSA Conference 9/13/2001
 |  | Oregon Direct Access | Commercial Contact -Calger, Burkle, Malowney | Multi-Million | Oregon's version of direct access begins Q2, 2002 | 2001-09-05 00:00:00 | Understand evolving rules and pursue profitable strategies.                                                              Next Step -Collaborate with commercial counterparts to develop deal opportunities
 |  | FERC Affiliate NOPR | [NAME] |  | Lawner, Cantrell, and Fulton met with [NAME] at FERC on 8-29-01 and discussed the marketing affiliate issue.  [NAME] agreed that rulemaking NOPR is expected to be voted out in Sept., and alternatives were discussed. | 2001-09-05 00:00:00 | Meet with FERC personel and advocate Enron issues at the Commissioner level.
 |  | WSCC - Kaufman
 |  | FERC WSCC Price Mitigation Plan | [NAME] |  |  | 2001-10-05 00:00:00
 |  | CA NW Refund | [NAME] |  |  | 2001-10-05 00:00:00 | Review ISO Data for accuracy and develop recievable counter claims.
 |  | California Legislation - SB78 ([NAME]) | [NAME] |  | CDWR authorization to purchase electricity for "net short" of PG&E, SCE, and SDG&E.  On and after January 1, 2003, the CDWR shall not contract under this division for the purchase of electrical power.  Legislation also ends Direct Access going forward. | 2001-09-05 00:00:00 | Passed and signed by Governor [NAME] on 2/4/01.   CDWR is implementing necessary contracts under "supervision" of [NAME] (SCE / New Power) & [NAME] (LADWP).
 |  | Rate agreement between DWR and CPUC | [NAME] |  | California PUC voted down [NAME]' propsed rate agreement between DWR and the CPUC.                                                                                [NAME]' proposal would remove all PUC authority to review any contracts between DWR with suppliers, and would require the PUC to pass through to utility rates all DWR power contract costs, no questions asked | 2001-10-05 00:00:00 | A broad left-right coalition of energy intersets supported a bill that passed the Legislature with broad bipartisan support.  [NAME] doesn't want to sign the bill, but may have no alternative.
 |  | Edison Bailout | [NAME] |  | PUC approved an Edison bailout 10-2-2001.                                                  1. Commission will keep current rates in place through 2003                      2. Any "overcollection" will go toward paying off $3.3 billion.                  3.  If [NAME] collects the $3.3 billion, proir to 2003, then rates can change. | 2001-10-05 00:00:00
 |  | California Legislation - SB2 (Windfall Profits Tax) | [NAME] |  | Utility authority to recovery past undercollection. | 2001-09-05 00:00:00 | Enron has offered legislative language to be included that would establish the end of the AB1890 rate freeze as the earlier of enactment or date that rates are established - seeking to legally protect past PX Credit underpayment.  Urgency of bankruptcy is top agenda.  In committee.  Existing law authorizes authorizes the Director of Finance to accept on behalf of the state any gift of real or personal property whenever the director deems the gift and the terms and conditions thereof are in the best interest of the state.  [NAME] would specifically authorize the director to accept on behalf of the state any tangible or intangible asset of an electrical corporation, as defined, including any parent or subsidiary corporation of that electrical corporation.
 |  | RTO West | [NAME]; Commercial Contact - Belden, Crandall | $10's of millions | RTO West to make compliance filing on 12/1/2001.  FERC has supported the concept of one Western RTO. | 2001-10-05 00:00:00 | (Current objective is to clarify design of transmission rights to (1) reduce the number of hubs/zones and tradable elements between hubs/zones, (2) fully define nature of transmission right to make trading simpler, (3) move debate toward accepting uncovered schedules (a modification of the current non-firm approach).  Regular meetings held between Congestion and Planning, Ancillary Services, Scheduling and Pricing and Tariff groups are being used to coordinate efforts and to factor in Desk's view of what is needed)  -----Push RTO West formation without creating a public utility backlash; pursue policies that are compatible with strategies in the East.                                  Next Step - Development of workable congestionmanagement model; Dec. 1 filing
 |  | East Coast - Montavano
 |  | GridSouth Transco | [NAME] |  | Transmission access & market design. | 2001-09-05 00:00:00 | The second meeting of parties interested in collaborative process for both the GridSouth and SeTrans RTOs is being planned for late March.  Also considering actions to ensure that neither RTO makes expenditures on market designs that have not been approved by FERC
 |  | Southern Gridco | [NAME] |  | Transmission access & market design. | 2001-09-05 00:00:00 | The second meeting of parties interested in collaborative process for both the GridSouth and SeTrans RTOs is being planned for late March.  Also considering actions to ensure that neither RTO makes expenditures on market designs that have not been approved by FERC
 |  | Florida RTO | [NAME] |  | Transmission access, market design, 2020 Commission | 2001-09-05 00:00:00 | The major focus at the present time is on the real time energy market design.  [NAME] filing with FERC calls for a balanced schedule approach to the real time energy market.  Presently working on a Real Time Energy Market "White Paper" that will clearly state our position and will be used to shift a balanced schedule approach to an unbalanced/uncovered approach.  Have been having informational discussions with participants and stakeholders re benefits of a liquid real time energy market.  Meetings scheduled with FL&P and TECO over the next two weeks.  Governor's 2020 Study Commission issued its wholesale market recommendations to the Legislature on 1/31/2001.  Senate Regulated Industries and House Telecommunication and Utilities Committees held public hearing on the recommendations the first two weeks of February.  Enron is preparing comments on Draft Legislation dealing with Utility status.
 |  | ERCOT - Ryall
 |  | Reform Texas Intrastate Natural Gas Market | [NAME] |  |  | 2001-09-05 00:00:00
 | Deal Support | RISK Analytics -Ibrahim
 |  | ISO Database | [NAME] |  | Creation of an expert system for the characteristics and opperations of the functioning databases in the U.S. | 2001-10-05 00:00:00 | First Draft on October 12. - on schedule                                                                                                                                                Second Phase to begin November 12th.
 |  | [NAME] (Venezuela) | [NAME] | 250 | LNG export project of 350 MCFD, to be completed in 3 yrs. After permit is issued by Ministry of Energy and Mines. | 2001-10-05 00:00:00 | Providing government and regulatory affairs support to Houston team.
 |  | Calife (Venezuela) | [NAME] | 6 | 60 MW electricity distribution company | 2001-10-05 00:00:00 | Assist in tariff setting, acquisition of lower cost energy, increase collection of receivables. [NAME] to the government on more favorable components of rates.
 |  | A) Nicaragua Privatization                              B) Puerto Rico Gas Rate Case | [NAME] | 1 | A) Regulatory due dillegance and Technical support                                       B) Regulatory Due dillegance and Technical support | 2001-10-05 00:00:00
 |  | [NAME] | [NAME] | 0.6 |  | 2001-10-05 00:00:00 | Advice Argentina team about steps to follow to reduce the cost of natural gas for the plant.
 |  | EES/ENA - Steffes
 |  | Electronic Scheduling OASIS Phase II - RTO Seams Issues | [NAME] | One-Stop shop for inter-RTO trading | ensure RTO startups "day-one" are capable of providing for seamless markets in the areas of - reservations, scheduling, tagging, congestion mangement | 2001-10-05 00:00:00 | Participate in "ESC" meetings and review standard scheduling business practices.  Provide information to FERC staff and commissioners on the impacts to markets if RTO markets are not coordinated. Push for either a FERC rulemaking on OASIS II or result in
 |  | NERC Control Area "Reliability Model" | [NAME] | open markets for physical delvery in regions where Enron does not operate a control area | promote the reformation of reliability based operating procedures and standards to eliminate discriminatory scheduling practices of control areas | 2001-10-05 00:00:00 | Elevate importance of implementing independence requirements on control areas as RTO proposals for control areas are developed.
 |  | Interconnection with Georgia Power (Athens Development Company) | [NAME] | unknown | Negotiate interconnection agreement between Georgia Power and Athens Development for 564 MW combined cycle plant. | 2001-09-05 00:00:00 | Deadline for executing agreement is 9/20/01.  If no agreement is reached, unexecuted agreement will be filed with FERC.
 |  | Interconnection with WAPA | [NAME] | unknown | Provide information on regulatory precedent. | 2001-09-05 00:00:00 | Interconnection study has been requested; next step would be to negotiate interconnection agreement if indicated.
 |  | Interconnection with FPL (Midway Project). | [NAME] | $10 - 14 million | Negotiate interconnection agreement between Enron Midway Development Company and FPL. | 2001-09-05 00:00:00 | Deadline for executing agreement is 9/14/01.  If no agreement is reached, unexecuted agreement will be filed with FERC.
 |  | Regulatory Updates | Cantrell | UK | Background: Project is the development and implementation of an electric regulatory reporting system that could be linked to the Fundamentals web sites used by the traders to replace the current system of distributing paper copies. | 2001-10-05 00:00:00 | Meetings have been held with the IT development team and [NAME].  We are scheduling meetings with commercial personnel to review specific approaches.
 |  | EL Paso Block II Turnback | Cantrell | $2.0/Month, or $120.00 for remainder of term | Bckground: ENA has a TSA on El Paso with an MDQ of 195,503 Mcf/day (200,000 dth) that will terminate on 5/31/2006.  The TSA is subject to El Paso's maximum FT-1 rate. | 2001-10-05 00:00:00 | This is being handled on a regulatory basis through participation in the El Paso System Reallocation proceeding.
 |  | El Paso System Reallocation | Cantrell | UK, but will also affect the way the West [NAME] trades gas. | Background: El Paso does not assign primary receipt point rights for firm transportation.  All shippers have equal rights and each nomination cycle requires a pro rata allocation if capacity is constrained.  Full requirements service complicates this beca | 2001-10-05 00:00:00 | Comments have been drafted to be filed on 10/15.  The comments argue for rationalization and turnback of unneeded capacity.
 |  | FERC Reporting Requirements for Gas to California | Cantrell | UK | Background: FERC issued an order requiring sellers of natural gas to California to report details of their transactions.                                                                                              Key Issues: ENA/EES filed a request for h | 2001-10-05 00:00:00 | See "Advocacy" item above.
 |  | EES - Kingerski
 |  | AEP compliance in TX with Retail Requirements | [NAME] |  | AEP has not complied with requirements to disclose customer lists or price that large customers will be supplied under starting 1/02. | 2001-10-05 00:00:00 | Informal complaint has been sent to Staff of TX PUC.  Will be scheduling a meeting to further review and discuss.  EES has identified AEP compliance as a key issue.
 |  | Williston Basin Pipeline Base Gas Monetization | [NAME] |  | ENA West Gas Origination is evaluating monetizing storage base gas, replacing with pipeline compression and pipeline looping. | 2001-10-05 00:00:00 | Identitying regulatory issues, and developing strategies to address such issues.
 |  | EDI development and implementation in NY | [NAME], [NAME] |  | EDI is being developed by all market players, including Enron. We are making sure appropriate standards are adopted in a very narrow timeframe. EDI implementation has one of the highest priorities for pursuing large commercial operations in NY. | 2001-10-05 00:00:00 | Enron is actively participating in the development, testing and implementation of the EDI standards. We have created an ESCO/Marketer working group to focus support and concerns.
 |  | New York Operational Support | [NAME], [NAME] |  | Enrollment of new customers in ConEd's territory has experienced billing problems. | 2001-10-05 00:00:00 | EES and GA are in the process of executing a Billing Agency Agreement (which includes bill testing, security/parental guarantee, etc.). GA is facilitating this process which is expected to be completed before mid-October.
 |  | EDI and regulatory issues in BG&E (Maryland) | [NAME] |  | EES has plans to enter the BG&E market territory. [NAME] is being offered in a limited basis. | 2001-10-05 00:00:00 | GA is researching on this even though further EDI development and implementation is unlikely in the near future. Other regulatory/commercial issues are also being researched (v.g. Internet-based systems replacing VANs).
 |  | Canada and Mexico natural gas issues | [NAME] |  | Preparing an application to be filed with the Department of Energy to reauthorize our import/export authorization for natural gas in and out of Canada and Mexico. | 2001-10-05 00:00:00 | Application should be filed by October 1.
 |  | [NAME]:  HVDC Tie with Mexico | [NAME] |  | EWS is building a transmission tie from ERCOT to Mexico. | 2001-10-05 00:00:00 | Ongoing support on state and federal regulatory issues.
 |  | Equity Office Properties | [NAME] |  | EES is evaluating a large-scale distributed generation initiative with this existing commodity customer. | 2001-10-05 00:00:00 | Ongoing analysis/evaluation of regulatory issues.
 |  | IL Supplier Agreements | Gloria Ogenyi & [NAME] |  | Supplier agreements need to be negotiated and finalized with [NAME] and IP. | 2001-10-05 00:00:00
 |  | Oregon Market Opening | [NAME] |  | Market for large customers opens in Oregon, spring 2002 | 2001-10-05 00:00:00 | Meeting conducted with EWS and EES Origination to explain regulatory rules.  Helping identify future opportunities and rate obligations.
 |  | Longview Energy Development; QF buyout transactions with ENA | PJK,  [NAME], [NAME] |  | We are assisting ENA origination in the development of a CT in Longview Washington.  [NAME] of ENA is working a proposa for a two-step auction to buy-out and down QF contracts | 2001-09-05 00:00:00
 |  | Market Analyses | [NAME] [NAME] |  | EES has requested market analysis reports for Central Hudson. | 2001-10-05 00:00:00 | Reports being prepared.  Effort being supported by [NAME].
 |  | SW Gas Case in NV | [NAME] [NAME] |  | SW has proposed a rule that would require transporting gas customers to stay with the utility for 5 years if they return to utility service. | 2001-10-05 00:00:00 | Testimony will be filed.  Case will be handled internally except for small amount of outside legal support.
 |  | Elba Island LNG | [NAME] |  | EGM trying to deliver LNG to Southern Gas At Elba with El Paso Mktg as receiver.  Liquification costs are point of contention. | 2001-10-05 00:00:00 | Identifying appropriate level of costs that Southern should charge.  Costs have been modelled.  May need to address through FERC proceeding.  EGM is eager to address these issues.
 |  | WSCC - Kaufman
 |  | QF Buyout Study | [NAME], Commercial Contact- [NAME] | 100 | Given current forward curve; QF contract buyouts look promising.  Utility interest may be heightened given current rate and credit pressures | 2001-09-05 00:00:00 | Assist commercial team on a screening curve analysis.  Develop project types that are most promising from a buyout perspective; consider similar approach in Nevada; keep an eye on impacts on "in-CA" and renewable production to prevent political backlash.               Next Step - Presentation to Edison to gain utility support
 |  | Federal - Robertson
 |  | Gas Storage Monrtization proposal | [NAME] |  |  | 2001-09-05 00:00:00
 |  | East Coast - Montavano
 |  | [NAME] | [NAME] | 5 | Several discussions have been held with [NAME] regarding the offering of gas supply management services for [NAME]' gas supply dept. for their retail businesses in the Northeast and Mid Atlantic Region. | 2001-09-05 00:00:00 | Some type of deal closure 50% probable by year-end.
 |  | Basic Gas Supply Service  (BGSS) | [NAME] | 100 | Discussions with 3 NJ LDC's: PSE&G, NUI, NJR regarding ENA as a "partner."  This woud give ENA a stronger strategic Northeast capacity position. | 2001-09-05 00:00:00 | Use the regulatory process at the NJ BPU to our advantage offering the LDC's regulatory support in exchange for business opportunities.   Goal - at minimum, have signed LOI's by end of year.
 |  | Fuel Cells Project | [NAME][NAME] |  | DPUC rejected fuel cell project.  The DPUC issued a draft decision which declines to fund the project from the project from the Conservation and Load Management Fund.   DPUC also issued a press release which is not helpful in promoting the project.  Decision not to fund out of the C&LM fund was not unexpected.  The project has suffered a very real setback but has not been abandoned by EPMI. | 2001-09-05 00:00:00 | Montovano  talking with [NAME], Minority Leader of the House, and feedback is positive.  Plan to schedule a meeting with Rowland
 |  | Project Brookhaven | [NAME] |  | ENA is in the process of finalizing a land option agreement with a property owner in NY to build a sub 80 plant with the option to expand later | 2001-09-05 00:00:00
 |  | PSE&G Deals | [NAME] | 10 | Currently looking at at variations of our existing transactions with this Company, including: EOL, power, gas capacity mgt. | 2001-09-05 00:00:00 | Commercial relationships are in great shape due to past work
 |  | PSE&G Basic Generation Service  (BGS) | [NAME] |  | Outshoot of last year's gas deal.  Currently in discussions with them regarding a wholesale power transaction | 2001-09-05 00:00:00
 |  | NUI Corp | [NAME] | $0.2. | Signed a seasonal Delivery Service (SDS) agreement with NUI through GA discussions with the company, after EES had lost the original bid for this service. | 2001-09-05 00:00:00
 | Regulatory Ventures | EES - Kingerski
 |  | Montana PLR support; Wyoming gas monetizaton. | PJK,[NAME] |  | We are working with ENA origination on a number of potential transactions with the state ofMontana public power authority. | 2001-10-05 00:00:00
 |  | Midwest - Migden
 |  | Ormet Project/Ohio | [NAME] |  | Meeting on the Belmont County, Ormet project went well.  Enron's coal plant development group is preparing an application and we will be exploring with the Ohio Air Quality Dev't Authority both traditional and creative new financing structures. | 2001-09-05 00:00:00 | Arrange follow-up meeting, pursue other projects in Ohio
 |  | Canada - Hemstock
 |  | Alberta PPA - Transmission Cost Responsibility Hearing | [NAME] | $60.00 Cdn | Enron is leading a coalition of 5 PPA Buyers that successfully advocated the AEUB to convene a process/hearing (the convening of which was opposed by the PPA Owners) to consider the proposal by the Transmission Administrator to apply transmission charges to PPA Buyers for transmission capacity that solely accrues to the financial benefit of PPA Owners. | 2001-09-05 00:00:00 | One week of hearings were held in spring 2001 with the hearing scheduled to be completed in november 2001.
 |  | Alberta PPA - Gov't Agreement to split Enron's Sundance B PPA in two | [NAME] | $50.00 Cdn | Gov't Affairs successfully lobbied Alberta Energy officials and Minister of energy to agree to approve regulatory changes necessary to allow for the split of Enron's PPA into two PPAs despite one of the fundamental elements of the original PPA model was that the PPAs would be very large and divisible.  This is important as the whole PPA represents 706 MW and is likely too large for Enron to sell as a whole but a PPA of 303 MW is more marketable. | 2001-09-05 00:00:00
 |  | Alberta PPA Opposition to Wabamun Water Treatment Plant Expansion | [NAME] | $2.00 Cdn | GA in conjunction with legal group has achieved "effected person" status in relation to an application by TransAlta (Enron's PPA Owner counterparty) to undertake an expansion to the Wabamun water Treatment Plant.  The objective is to position Enron to resist future attempts by TransAlta to pass through the cost of this expansion to Enron. | 2001-09-05 00:00:00
 |  | Fragmented Scheduling (Book out protocols) | [NAME] | Unknown.  Should reduce overhead associated with scheduling and trading. | Attempts to commoditize enerry positions in order  to facillitate book-outs and ultimate matriculation of unbalanced positions into physical energy schedules. | 2001-09-05 00:00:00 | Currently on hold.  Has been discussed in OASIS technical and policy forums, but RTO and OASIS uncertainty have withdrawn many peoples focus from OASIS.  Will develop more detailed "white papers" to describe process in more easily understood formats.
 | Legal Issues | ALL
 |  | California PUC Subpoena | V. Sharp                                     M. Smith |  | We have received a subpoena (along with EPMI & Portland General Electric) from the California Public Utilities Commission seeking information regarding wholesale price spikes in the summer of 2000.  The Subpoena is part of an investigation by the Califronia PUC regarding the operation of wholesale and retail electric markets in Californai. | 2001-09-05 00:00:00 | We have responded with certain non-proprietary information, and provided certain other data in a subsequent response.
 |  | Negative CTC Claim | [NAME] | -580 | SCE and PG&E owe Enron for Negative CTC accrued since March 2000.    This is a result of the operation of the legislated frozen tariff and high wholesale market prices that exceeded the tariff. | 2001-09-05 00:00:00 | 1.  PG&E recovery tied into PG&E Bankruptcy.  2.  PG&E and SCE have not returned net bill amount to EES' customers.  3.
 |  | NE Pool / NYISO Load Curtailment Programs | EES |  | We are developing forms and supporting their implementation to offer customers the availability to participate in NEPOOL and NYISO Load Reduction Programs. | 2001-09-05 00:00:00
 |  | Telemarketing | EES |  | Finalizing telemarketing programs fro Texas, new Jersey, and New York | 2001-09-05 00:00:00
 |  | Structual Supply | EES |  | Advising EES corporate development in connection with the potential of aquiring power from verious IPP's in order to meet the retail load of EES' customers. | 2001-09-05 00:00:00
 |  | Muni Acquisition | EES |  | Advising EES corporate development in connection with potential opportunities for EES to provide its products to municipal utilities. The Municipalities would then resell these products to their customers. | 2001-09-05 00:00:00