FYI.  Attached please find a legal cite that indicates that the federal 
government would be the guarantor of the sales under the DOE order.  I have 
no idea if this is correct.

Jim



----- Forwarded by James D Steffes/NA/Enron on 01/24/2001 11:14 AM -----

	Rob Bradley
	01/24/2001 11:05 AM
		 
		 To: James D Steffes/NA/Enron@Enron
		 cc: 
		 Subject: Compulsory Sales

FYI--legal cite for the right lawyer.

- Rob


----- Forwarded by Rob Bradley/Corp/Enron on 01/24/2001 11:04 AM -----

	Jim DeLong <JDeLong@cei.org>
	Sent by: owner-fme-roundtable@perc.org
	01/24/2001 10:52 AM
		 
		 To: "'Tollroads@aol.com'" <Tollroads@aol.com>, lynns@reason.org, 
fme-roundtable@perc.org
		 cc: 
		 Subject: Compulsory Sales


PSamuels wrote:  "It seems outrageous that anyone in this country can be
commanded to supply a product against their will, against their better 
commercial
judgment, to utilities that have no known way to pay their bills etc. What
is the constitutional basis for such orders, I wonder?"

I do not doubt that the government can order the utilities to keep supplying
electricity, but I think the federal government is now the guarantor of
payment.  See the Supreme Court's 1996 decision in the Winstar case.

James V. DeLong
Senior Fellow -- Project on Technology & Innovation
Competitive Enterprise Institute
1001 Connecticut Ave., NW
Washington, DC 20036
(202) 331-1010 TEL     (202) 331-0640 FAX
jdelong@cei.org        www.cei.org