Here is my report, attached as a word document, on my recent meetings with
EES employees, Jubran Whalon, Neil Bresnan, Dennis Benevides, Jay Lewis, and
Scott Stoness in Houston. A  description of their account of the documents
in Houston which appear to be called for by the AG's subpena to EES follows
in the text of this e-mail:

 Discussion of Specific Document Requests

No 1.  All contracts for retail sale:  These are both in California and
Houston.
Nos. 2 and 3:  All contracts under which EES has purchased electricity on
the western interconnection between 1998 and the end of 2003:  About five
percent of these contracts are for green power made with various entities.
The vast majority, approximately 95%, are contracts with EPMI, which
purchased all electricity load for EES.  There may be also a few contracts
with APX.  EES has paper fax copies of all these deals.  Their understanding
is that EPMI charged EES exactly what the utilities would have paid on the
California market.  While they do not know how EPMI actually provided for
the power, they believe EPMI probably did not buy most of it on the
California market.  They believe all these contracts are voidable if they
are revealed to any third party.  They characterize all this information as
extremely sensitive.  They believe with this information, if given enough
time and a few other variables, parties could construct Enron's price
curves.
No. 4.  Documents which identify the purchases of EES for power in the day
ahead, hour ahead, or real time markets operated by the PX or Cal ISO:  They
say there are none.  EES was a scheduling coordinator, but never used the
function.
No. 5.  Documents relating to portfolio of energy supply sources relied upon
EES to meet contractual obligations to NU's customers in California:  There
are no such documents.
No. 6.  Documents relating to the assessment of risks regarding:  the cost
of purchasing electricity in California:  They do not believe there are such
documents, but there may be presentations on this issue.
No. 7.  Documents relating to strategies or business plans designed to
minimize risks with regard to the cost of purchasing electricity necessary
to serve customers:  All EES officers and traders receive daily reports to
corporate goals for EES and show how EES was performing in conformity with
these goals.  They characterized these documents as extremely sensitive.
They use these on a daily basis.  Most of these goals are based upon the
price curves.  They also receive month end reports which show how each
division is doing according to these corporate goals.  They believe that a
corporate function called Risk Control would have custody of these reports.
Vladimir Gorny (sp?) was said to be the person in charge of these.
No. 8.  Documents relating to decisions to return direct access customers to
default utility distributors in California, including documents relating to
cost savings:  They believe these documents exist in Houston.  They believe
there are spreadsheets which show the cost savings or revenue enhancements
that EES would have received as a result of returning customers to
utilities.  They believe Don Black would have these.  They believe all these
documents would reveal price curves.
No. 9.  Communications relating to the return of direct access customers in
California:  There may be spreadsheets which exist on this subject:  They
believe that Don Black would have them.
No. 10.  Documents sufficient to identify persons most knowledgeable about
decisions made to return direct access customers in California:  These would
be the same documents as No. 9.
No. 11.  Documents related to the assessment of the dramatic increases in
electricity in California:  They don't know if these documents exist or not.
There may be some presentations on the subject.
No. 12.  All documents relating to strategy and business plans designed to
maximize revenues from the sale of electricity in California:  They construe
this request to refer to origination documents.  These would be with the
person that was in charge of selling services in California during the
period in question.  They believe Doug Condon (sp?) or Harold Buchanan would
have these documents.
No. 13.  Documents that show sales to California Department of Water
Resources:  They don't believe there are such documents.
Nos. 14, 15.  Contracts obligating them to either supply or purchase
electricity which they prematurely terminated:  They don't believe there are
any contracts which they prematurely terminated.  Some contracts were
terminated but by agreement.  The only possible exception may be the
University of California contract.
No. 16.  Organizational charts which show the persons with authority for
risk management.  They believe Dave Delaney or Marty Sunde, Vice Chairman of
EES, might have such charts.
No. 17.  Documents relating to risk management of trading activities on
California markets for electricity or natural gas and pipeline capacity:
These again may be guidelines which Delaney or Sunde might have.
No. 18.  Organizational charts regarding those who have responsibility for
approving charters and objectives for making risk management decisions:
They believe Jess Hewitt's department might have these.  They believe these
refer to risk management procedures to prevent conflict of interest among
EES traders.
No. 19.  Documents relating to development approval of charters and
objectives for making risk management decisions:  They believe there is a
master agreement on this subject.  They believe Rick Byers (sp?) might have
this agreement.  They also believe this request refers to guidelines
regarding conflict of interest for traders under their risk management
policies.
Nos. 20, 21.  Documents which identify financial and ownership positions of
natural gas or capacity to deliver and transport natural gas to California:
Gas contracts are handled by a different department at EES.  They believe
that some of these gas contracts were purchased by EPMI, but had no direct
knowledge of them.  They believe EES may have purchased its own gas or
pipeline capacity because EES has the necessary credit to accomplish this.
EES had its own power desk that scheduled gas.  However, they probably
purchased most of it from Enron North America.

 <<ees houston meetings_.doc>>

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