The California Power Exchange (PX) is likely to issue a letter to its market 
participants indicating that Enron has broken the PX's rules by purposefully 
overscheduling an intertie causing congestion and a market price increase.  
The attached FERC complaint opposing PX action is probably not in final form 
yet, but I wanted to get you in the loop because it may be filed with FERC as 
soon as tomorrow.   The complaint explains that the PX tariff contains no 
prohibition against overscheduling and the California Independent System 
Operator, not the PX, schedules congestion over interties.  Further, under 
FERC precedent, without prior FERC review, the Cal PX should not be issuing 
letters finding violations.  Finally, the PX's analysis is seriously flawed 
because it doesn't consider market rules that actually caused the congestion 
and any potentially related price increase.  

We are very concerned about the PX's actions because we believe California 
utilities may be awaiting this letter to sue EPMI  (estimated claims ranging 
between $6 million and $47 million).  We probably want to aggressively 
publicise the filing so our side of the story comes out instead of the PX's.  
We have a meeting scheduled tomorrow with the PX where they will likely tell 
us if they will be issuing the letter.  Call me if you have any questions: 
(503) 464-8862.
---------------------- Forwarded by Mary Hain/HOU/ECT on 02/01/2000 09:11 AM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  "Ronald Carroll" <rcarroll@bracepatt.com>                           
01/31/2000 03:49 PM
	

To: Mary Hain/HOU/ECT@ECT
cc: Joe Hartsoe/Corp/Enron@ENRON 
Subject: Redraft of Silver Peak Complaint



Mary, Please distribute as appropriate.  Ron



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