If you want to talk about the KY issues, probably best to get with Janine Migden.

Jim

 -----Original Message-----
From: 	Hennemeyer, Paul  
Sent:	Thursday, August 09, 2001 4:46 PM
To:	Briggs, Tom
Cc:	Steffes, James D.; Radmacher, Andreas; Nersesian, Carin; Thompson, John (London); Shapiro, Richard
Subject:	Eon in the US; NExt Steps

Tom:

Just to recap what we discussed to make sure I understand.

Next Steps

1. You have asked counsel from Akin, Gump to analyse the possible options we may have to intervene at a the federal regulatory level in the Eon take-overs. Possible avenues are the FERC and the SEC. I understand that you and she will also carefully examine any options we mave via the USTR - which may prove to be our strongest hand. She will provide you with an assessment of the various options and risks to these options in the course of the next week or so. As you know, Andreas and I have spoken to Steffes, Shapiro, and Frevert - all of whom were supportive of this idea and so no marked risk to our relationship with Eon or possible 

2. Akin Gump  will also file an intervention on our behalf with the FERC re the Eon acquisition of LG&E by no later than cob Monday to provide us with a place holder in the proceedings should we wish to act. We will jointly contact Shaw on Monday to 
let him know that this is being done. 

3. Building from our meetings in Washington, Russ Kean from Kissinger and Associations will draft up an initial "political leverage" program which would cover the following:  

what goals we might realistically achieve by engaging senior US politicians in the issue of energy market opening in Germany and equal treatment for American companies; 
what key messages would we want to develop to generate high-level political interest in this; 
what politicians and decision-makers should we want to approach, how should the messages be presented, and how can we galvanise political action (possible targets would be the US Trade Rep,. the White House/ VP Cheney, key members of Congress, US Assistant Secretaries at State and possibly Commerce, and local politicians in Kentucky)

4. You and I can then pull this material together into a coherent presentation for Eric and other senior folk in London to present the program of how, in a graduated fashion, we can apply increasing pressure on Eon to seek their co-operation and or acquiesance in regulatory areas such as unbundling, regulated TPA, and reciprocity as well as  commercial issues such as tolling agreements, and  long-term interconnector capacity. Mark Frevert has offered to raise any of this with Harig (head of Eon) if and when we want.   

5. On a parallel path, we will continiue to get the message out that the German market is not open and US firms are suffering when John meets with the Congressional Delegation in Berlin next week and a meeting slated with the new US Ambassador (Coates) in Berlin later in September.

Missing Items:

1. Do we have interest in also developing a PR angle to this program? It may be a bit premature, but, if so, we would need to work with Enron's PR agency to develop the messages we would want to get out, the vehicles for doing so, the localities to hit, and the follow-up.  

2. We still need more detail from (Shaw, Thompson, and Radmacher) on exactly what their commercial priorities are and how to balance these with regulatory objectives. 

3. An assessment for options at the state regulatory level. 

4. Have meetings yet been set up with USTR? This is a key pressure point.

Let me know what other thoughts you may have and let's talk tomorrow afternoon.
Thanks, Paul