FYI.  Will try and keep everyone informed.

Jim

----- Forwarded by James D Steffes/NA/Enron on 03/04/2001 07:50 PM -----

	Mike D Smith@EES
	03/02/2001 05:08 PM
		 
		 To: Dan Leff/HOU/EES@EES, Marty Sunde/HOU/EES@EES, Don Black/HOU/EES@EES, 
Wanda Curry/HOU/EES@EES, Evan Hughes/HOU/EES@EES, Dennis 
Benevides/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, Harry 
Kingerski/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Mark 
Palmer/Corp/Enron@ENRON, Mark Koenig/Corp/Enron@ENRON
		 cc: Vicki Sharp/HOU/EES@EES, Robert C Williams/Enron@EnronXGate
		 Subject: UC-CSU Call

Here is a brief summary of today's call with UC-CSU:
Attended by business and legal representatives from each side (including 
University outside counsel) to discuss views of the dispute
Universities are entrenched in their position that we did not have the right 
to D-DASR their accounts; their demeanor was relatively aggressive
They have asked us to explain in more detail our reason for D-DASRing their 
accounts, including how that action "enhances our ability to fulfill the cost 
guarantee" under the agreement
They demanded again that we return their accounts to our service, and we 
refused again
We reiterated our position that we have the right under the contract to 
D-DASR and that continued performance of physical delivery was and continues 
to be commercially impracticable.
We pointed out that their actions are impeding our exercise of our rights 
under the agreement. 
They expressed an unwillingness to continue the dialogue around a commercial 
solution until we return their accounts to our service.
We agreed to have another telephone conference Monday, but we do not expect 
much progress.
Although not threatened, it remains likely that the universities are 
considering seeking some sort of injunctive relief

Please let me know if you have any questions.  MDS