Hey, Neville.  FYI.

Best,
Mike Kahn's best buddy
----- Forwarded by Jeff Dasovich/NA/Enron on 03/22/2001 02:52 PM -----

	Alan Comnes@ECT
	03/22/2001 02:13 PM
		 
		 To: Tim Belden/HOU/ECT@ECT, Mike Swerzbin/HOU/ECT@ECT, Michael M 
Driscoll/PDX/ECT@ECT, Matt Motley/PDX/ECT@ECT, Robert Badeer/HOU/ECT@ECT, 
Diana Scholtes/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Chris 
Mallory/PDX/ECT@ECT, Jeff Richter/HOU/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Mark 
Fischer/PDX/ECT@ECT, Phillip Platter/HOU/ECT@ECT, Carla Hoffman/PDX/ECT@ECT, 
Christopher F Calger/PDX/ECT@ECT, Michael Etringer/HOU/ECT@ECT, Steve C 
Hall/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Tim Heizenrader/PDX/ECT@ECT, 
Stephen Swain/PDX/ECT@ECT
		 cc: Jeff Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Joe 
Hartsoe/Corp/Enron@ENRON, Ray Alvarez/NA/Enron@ENRON
		 Subject: Bush Admin to Stay the Course on Price Caps: Latest Update,

This paraphrased from Tom Briggs, Enron Govt Affairs, DC:

The Bush Administration has indicated that it will not support any sort of 
legislation containing price caps.  Although something could get out of the 
Senate, it won't go anywhere without Administration support.

Thus, by default, the just and reasonable standard becomes the FERC's 
evolving rate-screen process, which, for imports into California, is  "daily 
spot market gas prices and an average 12,000 Btu/kWh heat rate."  The 
standard for in-state resoruces is higher, more like 18,000 Btu/KwH.

Instead, expect to see legislation that will take short-term actions to 
increase supply and decrease demand.  This could include demand buy down 
programs, and laws the force utility financial solvency.

Every day is a new day but I am told this will likely be the status quo until 
the congressional recess is over (recess is from 6-30 April).

Alan Comnes