Spreadsheet: richard_shapiro__32147__texas-ryall
Sheet: Regulatory

 | GOVT AFFAIRS REPORT - TEXAS
 | March, 2001 |  | Questions - Jean Ryall (512) 320-5957
 | Support Type | Deal Name/Project | Responsible  Persons | Business Unit Affected | $ Impact (MM) | Key Issues | Updated | Strategies/Comments/Next Actions
 | [NAME] | Customer Protection Rules | [NAME] | EES |  |  |  | Update to follow on next report.
 |  | ERCOT - Protocol Review Sub-Cmte. | [NAME]/Thane Twiggs | ENA, EES |  | Commission has approved the protocols with amendments. Review protocols to encourage transparency and liquidity in the ERCOT market. | 2001-03-15 00:00:00 | The PUC staff is in the process of preparing an order to articulate the commission's opinion. PRS will convene regular meeting to review protocol review submissions.  The PUC issued a draft of revisions that they would have revised.  Recent submissions also consider discrepancies between current protocols and software limitations.
 |  | ERCOT - Technical Advisory | [NAME]/Thane Twiggs | ENA. EES |  | Defining the commercially significant constraints and zones.  Oversight of the wholesale market procedures and agreements. | 2001-03-15 00:00:00 | The TAC voted to set the commercially significant constraints at 2 with three zones.  Enron was concerned about the process to determine the zones and constraints.  The process will start anew in October for the '02 market operation.
 |  | ERCOT - Wholesale Market Sub. [NAME]. | [NAME]/Thane Twiggs | ENA, EES |  | Response to the PUC proposed protocol changes and request for information. | 2001-03-15 00:00:00 | The PUC has issued a draft of the protocol reviews, many of which will originate in the WMS prior to consideration by the PRS.  The PUC has also requested information or a response to issues such as balanced/unbalanced schedules.  Create support for acceptance of unbalanced schedules.
 |  | ERCOT [NAME] before the PUC | [NAME] | EN, EES |  | The commission has approved the protocol with amendments. | 2001-03-15 00:00:00 | The PUC staff is preparing an order to articulate the commission's opinion.
 |  | ERCOT Retail Sub-Cmte. | [NAME] | ENA, EES |  | Retail Issues | 2001-03-15 00:00:00 | First meeting to be held on March 22.
 |  | ERCOT Technical/Reliability Sub-Cmte. | [NAME], [NAME] |  |  | Generation Adequacy Study | 2001-03-15 00:00:00 | Next meeting will be held on March 20.
 |  | Greater Houston Partnership BCCA - Houston | [NAME] | Enron |  | Kick-off of 1.2 million dollar public education campaign to educate citizens in local government.  The focus theme is elected officials have to make touch choices. | 2001-03-15 00:00:00 | Next steering committee meeting will be held on March 28.
 |  | PAC | [NAME] | All
 |  | Price To Beat | [NAME] | EES |  | The Price To Beat Rule has been adopted. | 2001-03-15 00:00:00 | The hearings on the contested cases will start in April on how to set the Price To Beat calculation.
 |  | Renewable Energy Credit Trading | [NAME] |  |  | Assure opportunities/rights to achieve compliance with renewable portfolio standards. | 2001-02-22 00:00:00 | Engaged in design discussions for NePool full credit based program.  System will probably take approximately 1-2 years to implement.  Engaged in discussions for renewable energy credit trading market for the Western region.  Also pushing federal legislative language.
 |  | SPP RTO | [NAME]/Thane Twiggs |  |  | Transmission access and market design. | 2001-03-15 00:00:00 | SPP is working at detailed market structure issues.  Government Affairs leading the drafting efforts.  SPP board vote delayed from February on key market rules - pursing votes.
 |  | Texas Attorney General-Antitrust | [NAME] | ETS, ENA |  | Under present circumstances - nothing | 2001-03-15 00:00:00 | Since Texas attorney General
 |  | Texas Legislative Review - Wind | [NAME] | Enron Wind
 |  | Texas RRC | [NAME] | ETS, ENA |  | Pipeline integrity Testing Rule | 2001-03-15 00:00:00 | Will be back up for a vote on April 10, 2001.
 |  | TX Legislative Review | [NAME], [NAME], [NAME] | All |  | The different issues and legislation dealing with SB-7 and Enron's various business units. | 2001-03-15 00:00:00 | Working closely with the ARM collation to monitor any legislation that would have an impact on SB-7 and the current plans for deregulation in Texas. Also, carefully monitoring bills dealing with cable open access, broadband access, re-districting, environmental issues, tax issues and any legislation dealing that impacts our oil/gas businesses.
 |  | TX Unbundling and Customer Information | [NAME][NAME] |  |  | Trying to get negative stranded costs reflected in unbundled rates.  Trying to get full disclosure on default pricing for large customers. | 2001-02-22 00:00:00 | Disclosure by AREPs will be required, in response to Enron complaints. Cases proceeding on stranded costs and we are engaged.
 | Deal Support | Federal Solutions | [NAME] |  |  | Assure right of military complexes to privatize without incurring utility status. | 2001-02-22 00:00:00 | Support specific deal discussions in CA, TX, VA and GA.  Ensure federal laws are interpreted correctly at state commissions, where there still is a lack of clarity.
 |  | TX Provider of Last Resort | [NAME] | EES |  | Competitive Bid process in place for role of provider of last resort in TX, by region and customer class. | 2001-02-22 00:00:00 | [NAME] has been submitted.  [NAME] was non-conforming in that we did not submit a specific price as regulations require.  Instead, we plan on discussing approach with commission and getting regulations or law changed to permit more realistic bid process.
 |  | Uniform retail business practices | [NAME]/[NAME] |  |  | Advocate state policies that standardize the billing, customer care, and metering practices | 2001-02-22 00:00:00 | Most active in NY, TX, and mid-Atlantic regions through workshop processes.  Active in national process through GISB processes.
 | Origination