John Shelk is going to investigate the status of this amendment in the 
context of the Barton bill.  However, we want to raise with you our initial 
strong reaction to this amendment.  We are highly troubled that this 
amendment is being pursued at the Federal level.  We believe that we run the 
risk of hurting our push for negawatts, let alone getting a very negative 
vote on direct access itself.  We will do some quiet soundings.  But at this 
point, we believe there is enormous downside risk to this strategy.  We are 
calling NYMEX to find out what they are thinking.  



	Susan J Mara
	05/14/2001 01:35 PM
		 
		 To: Linda Robertson/NA/Enron@ENRON
		 cc: James D Steffes/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@ENRON, Paul 
Kaufman/PDX/ECT@ECT, Ray Alvarez/NA/Enron@ENRON, Richard 
Shapiro/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@ENRON
		 Subject: [Fwd: FW: DIRECT ACCESS AMENDMENT], the underlying e-mail

Whoops!  Here are the underlying e-mails

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/14/2001 10:31 AM -----

	Scott Govenar <sgovenar@govadv.com>
	05/14/2001 09:26 AM
		 
		 To: Jeff Dasovich <jdasovic@enron.com>, Sandra McCubbin 
<Sandra.McCubbin@enron.com>, Susan J Mara <smara@enron.com>, Mike Day 
<MDay@GMSSR.com>
		 cc: 
		 Subject: [Fwd: FW: DIRECT ACCESS AMENDMENT]

What do we think?

----- Message from "Mark Seetin" <nymex2@unidial.com> on Fri, 11 May 2001 
16:35:15 -0400 -----
To:	"Scott Govenar" <SGovenar@govadv.com>
Subject:	FW: DIRECT ACCESS AMENDMENT
Scott,
 
Chairman Barton has told us he would support a direct access amendment when 
the full committee marks up the bill next week.  Radanovich and Chris Cox 
have expressed strong interes in sponsoring it.  We are suggesting language 
which bypasses the CPUC -- with federal preemption of course.  Coan the 
California DA folks press the congressional delegation focusing on 
Radanovicha nd Cox??  What are your thoughts?
-----Original Message-----
From: Charlie DeWitt [mailto:nymex4@unidial.com]
Sent: Friday, May 11, 2001 11:31 AM
To: tricia.geringer@mail.house.gov; royce.reinecke@mail.house.gov
Cc: Mark Seetin
Subject: DIRECT ACCESS AMENDMENT

Dear Tricia and Royce, thanks for hearing us out on the issue of direct 
access.  Congressman Radanovich is welcome to offer an amendment on this 
issue next week.  The following language is based on some language we tried 
to have inserted at the State level.  Unfortunately, AB1X passed in January 
prohibits direct access and competition among sellers for buyers of 
electricity.  Without a free market for electricity and with all electricity 
purchases going through a state-mandated exchange, the taxpayers of 
California are left with paying the bill or electricity:
DRAFT LANGUAGE FOR DIRECT ACCESS IMPLEMENTATION
Not later than thirty days after enactment, the Independent System Operator 
("ISO"), shall submit to the Federal Energy Regulatory Commission ("FERC") a 
transmission congestion relief program that incorporates physical rights to 
firm transmission through congestable interfaces. Such rights will confer on 
users the right to access transmission through the interfaces without 
incurring congestion fees. The rights will provide access for periods judged 
to serve direct access market participants of up to one year. Initial 
provision of these rights will be through an annual auction overseen by the 
ISO. The rights will be resalable.
Not later than thirty days after enactment,  the program will implement 
direct access for large non-residential users of electric power. The program 
will require large industrial, commercial and other non-residential users of 
electricity to fulfill their electric power needs by contracting with 
non-investor owned utilitiy ("IOU") sources in accordance with the following 
schedule:
90 days after enactment: 1 megawatt and greater loads
180 days after enactment: 300 kilowatt and greater loads
270 days after enactment: 100 kilowatt and greater loads
360 days after enactment: 70 kilowatt and greater loads. 
This program will permit large industrial, commercial, and other 
non-residential users of electricity to voluntarily enter into contracts to 
fulfill any portion of their own electric power needs through direct 
contracting with non-IOU sources.


Charlie DeWitt
Associate, Government Affairs
New York Mercantile Exchange
1331 Pennsylvania Avenue, NW  Suite 550-S
Washington, DC 20004
ph. (202) 662-8771
fax (202) 662-8765
nymex4@unidial.com