Steve asked me to forward this to you.

(Did I get anything right????!!!!)

Jeannie

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Subject: Re: approval of FERC article for eBiz
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I think it looks good.  a few suggestions though:

I haven't read the whole reprt so I can't say for sure that it alleges no
price gouging (make sure to forward this to Jeff ... my e-mail is slow on
the road).  We can say though, that instead of blaming generators and
marketers the report blames the structure of the market for California's
woes.

I think we should shorten the quote to something like " the reprt is
consistent with what we have said all along.

We should say that the scheduling penalties part of the order will
"penalize utilities for underscheduling" not predicting.

Hedging is not about holding pirces down so much as it is about protecting
people from wild price swings ... that's what allowing utilities to buy
outside the spot should help do.

(Also, my title is just EVP and Chief of Staff)




                    JMandelker@ao

                    l.com                To:     skean@enron.com,
jeff.dasovich@enron.com
                                         cc:

                    11/01/2000           Subject:     approval of FERC
article for eBiz
                    03:32 PM









Thanks for talking to me about this article for this Friday's eBiz.

Please read it over and let me have comments tomorrow morning (Thursday).
it
goes live 5 p.m. Thursday evening.

Sorry for AOL -- my Notes is wreaking havoc today.

(Jeff -- Steve confirmed that the report said power sellers did not
exercise
market power or price gouging, so I put it in the article.)

Take care,
Jeannie

(See attached file: FERC Report.doc)


 - FERC Report.doc