On balance , this is a good thing- not great, but Barbara and Roy did a great 
job to get the improvements they got- also, the seccuritization is good for 
project motown assets.
---------------------- Forwarded by Richard Shapiro/HOU/EES on 06/01/2000 
07:02 AM ---------------------------


Barbara A Hueter
06/01/2000 06:23 AM
To: Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, Janine 
Migden/DUB/EES@EES, James D Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, 
Susan T Covino/HOU/EES@EES, Becky L Merola/DUB/EES@EES, Susan M 
Landwehr/HOU/EES@EES, Kerry Stroup/DUB/EES@EES, Jeffery Ader/HOU/ECT@ECT, 
Wendy King/Corp/Enron@ENRON, Richard Hill/LON/ECT@ECT, Adam 
Cooper/DUB/EES@EES, Mark Harada/HOU/EES@EES, Debbie Chance/Corp/Enron@Enron, 
Elizabeth Linnell/HOU/EES@EES, Lynnette Barnes/HOU/EES@EES
cc: Roy Boston/HOU/EES@EES 
Subject: MI: SB937 and SB1253 passed House last night



Late yesterday evening the Michigan House of Representatives approved the 
package of electric restructuring bills, namely SB937 (vote of 72 -35) and 
SB1253 (vote of 73 - 35).  The bills now go back to the Senate where the 
changes made by the House are expected to be agreed to.  If this occurs, 
which we expect it will, the bill will be signed by the Governor this weekend 
and take immediate effect.

Attached is an initial summary of SB937 as passed by the House.  The House 
accepted approximately 7 amendments on the floor.  This summary may be 
updated should these amendments have any real impact on the bill for Enron.  
Our initial assessment is that they do not - Eric Schneidewind and I are 
meeting first thing Thursday morning to review them carefully.  We will keep 
you updated.

Finally, regarding the issue of being subject to acquiring local franchises 
as a condition of doing business in municipalities in Michigan:  You will 
recall that we had language inserted into the bill in the Senate which 
declared that Alternative Electric Suppliers would not be considered public 
utilities.  This language would have deleted the requirement that we obtain 
local franchises.  However, the Governor had made a deal with the MI 
Municipal League that this issue would not be resolved in this legislation.  
(This deal I believe was struck in the context of various other issues 
pending among the legislature, governor and municipal league).  Late 
yesterday, Senate Leader DeGrow came out in support of an amendment to 
exclude schools (elementary, secondary, community colleges, universities, 
etc...) from the local franchise for purposes of aggregation -- thus 
upsetting the status quo which had been agreed to by the Governor and 
Municipal League.  Senator DeGrow was firm in his support and said that in 
order for the Senate to agree to House changes, this language had to be 
added.  Well, the language was not added in the House --- due to overall 
confusion.  So, we are going to talk with Senator DeGrow this morning to urge 
him to go forward with the Senate agreeing to the House changes in the bill 
and to consider the schools amendment in the context of exempting all 
Alternative Electric Suppliers from local franchise requirements.  A bill or 
amendment to this effect can be handled during the September session.  
Customer groups are also going to do the same thing.  The Govenror supports 
our position on this issue and we believe we have the momentum to get this 
done when the legislature comes back in September.  

Roy and I are available today if you have any questions.  You can reach Roy 
at 630-654-6472. I can be reached this morning at 614-306-4359 and this 
afternoon at 614-760-7472.