Anyone have any brilliant ideas on how we can produce this information?  In 
the meantime, Sue and I can prolong having to produce the information until 
we negotiate a confidentiality agreement.
---------------------- Forwarded by Mary Hain/HOU/ECT on 03/01/2001 05:20 PM 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  "Fergus, Gary S." <GFergus@brobeck.com>                           
03/01/2001 05:11 PM
	

To: "'Mary.Hain@enron.com'" <Mary.Hain@enron.com>, Christian.Yoder@enron.com
cc: "\"Jeffrey Watkiss\" <dwatkiss@bracepatt.com> @ ENRON" 
<dwatkiss@bracepatt.comdwatkiss>, Bill.Williams.III@enron.com, 
Chris.Mallory@enron.com, Christian.Yoder@enron.com, 
Harry.Kingerski@enron.com, James.D.Steffes@enron.com, Jeff.Richter@enron.com, 
Joe.Hartsoe@enron.com, Mark.Palmer@enron.com, Richard.Sanders@enron.com, 
Sarah.Novosel@enron.com, steve.c.hall@enron.com, Susan.J.Mara@enron.com, "cc: 
\"Ronald Carroll\"" <rcarroll@bracepatt.com>, Tim.Belden@enron.com, "Fergus, 
Gary S." <GFergus@brobeck.com>, mday@gmssr.com, sbishop@gibbs-bruns.com 
Subject: RE: CAISO Notice: ISO FERC Tariff Amendment 33 - Guidelines for S 
ubmitting Costand Supporting Data Docum


Mary,
 One of the issues in January that helped us along the path of not
reporting to FERC December over cap sales in addition to not being required
yet under the tariff was the question of how to match cost to sales in
California.  If the data is due tomorrow, we will need to decide how to
resolve that issue first thing tomorrow.

Thanks
Gary

-----Original Message-----
From: Mary.Hain@enron.com [mailto:Mary.Hain@enron.com]
Sent: Thursday, March 01, 2001 4:00 PM
To: Christian.Yoder@enron.com
Cc: "Jeffrey Watkiss" <dwatkiss@bracepatt.com> @ ENRON;
Bill.Williams.III@enron.com; Chris.Mallory@enron.com;
Christian.Yoder@enron.com; Harry.Kingerski@enron.com;
James.D.Steffes@enron.com; Jeff.Richter@enron.com;
Joe.Hartsoe@enron.com; Mark.Palmer@enron.com; Mary.Hain@enron.com;
Richard.Sanders@enron.com; Sarah.Novosel@enron.com;
steve.c.hall@enron.com; Susan.J.Mara@enron.com; cc: "Ronald Carroll";
Tim.Belden@enron.com; gfergus@brobeck.com; mday@gmssr.com;
sbishop@gibbs-bruns.com
Subject: Re: CAISO Notice: ISO FERC Tariff Amendment 33 - Guidelines for
Submitting Costand Supporting Data Docum



The ISO is now saying that it has the authority to require EPMI to report
our prices over the price cap pursuant to Section 4.5.1of its Market
Monitoring Protocol.  This provision gives the Market Surveillance Unit
very broad authority to request information, specifically: "the submission
of any infomration or data determined by the Market Surveillance Unit to be
potentially relevant by ISO Participants, the PX or other entities whose
activies may affect the operation of the ISO market."

Apparently EPMI had some December sales over the cap.  The FERC did not
order us to report these December sales to FERC but the ISO is now
requesting it.  I think our only available approach is to provide the
information to the ISO pursuant to a confidentiality agreement.  I have
asked Sue Mara if she would contact WPTF about negotiating a
confidentiality agreement.  Richard, please advise if this is the proper
course of action.  Please note, the information is due tomorrow.



(Embedded image moved to file: pic09515.pcx)
Christian Yoder
(Embedded image moved to file: pic17964.pcx)
03/01/2001 08:30 AM

To:   "Jeffrey Watkiss" <dwatkiss@bracepatt.com> @
      ENRON<Alan.Comnes@enron.com>, <Bill.Williams.III@enron.com>,
      <Chris.Mallory@enron.com>, <Christian.Yoder@enron.com>,
      <Harry.Kingerski@enron.com>, <James.D.Steffes@enron.com>,
      <Jeff.Richter@enron.com>, <Joe.Hartsoe@enron.com>,
      <Mark.Palmer@enron.com>, <Mary.Hain@enron.com>,
      <Richard.Sanders@enron.com>, <Sarah.Novosel@enron.com>,
      <steve.c.hall@enron.com>, <Susan.J.Mara@enron.com>, cc: "Ronald
      Carroll" <rcarroll@bracepatt.com>, <Tim.Belden@enron.com>
cc:
Subject:  Re: CAISO Notice: ISO FERC Tariff Amendment 33 - Guidelines  for
      Submitting Costand Supporting Data Docum  (Document link: Mary Hain)

I agree with Dan.  Have we sold above the cap?  If so, report.  If not,
tell them we will let them know when we do.----cgy




 (Embedded     Enron Capital & Trade Resources Corp.
 image moved
 to file:      From:  "Jeffrey Watkiss"
 pic23342.pcx) <dwatkiss@bracepatt.com>
               03/01/2001 07:00 AM






To:   <Alan.Comnes@enron.com>, <Bill.Williams.III@enron.com>,
      <Chris.Mallory@enron.com>, <Christian.Yoder@enron.com>,
      <Harry.Kingerski@enron.com>, <James.D.Steffes@enron.com>,
      <Jeff.Richter@enron.com>, <Joe.Hartsoe@enron.com>,
      <Mark.Palmer@enron.com>, <Mary.Hain@enron.com>,
      <Richard.Sanders@enron.com>, <Sarah.Novosel@enron.com>,
      <steve.c.hall@enron.com>, <Susan.J.Mara@enron.com>
cc:   "Ronald Carroll" <rcarroll@bracepatt.com>, <Tim.Belden@enron.com>
Subject:  Re: CAISO Notice: ISO FERC Tariff Amendment 33 - Guidelines  for
      Submitting Costand Supporting Data Docum


If we haven't sold anything over the cap, then I would go with #3:  Report
that we haven't and that we shan't report until we do.

>>> <Mary.Hain@enron.com> 02/28/01 07:03PM >>>
By a letter in early January, the ISO told EPMI that FERC's order accepting
the ISO's Tariff Amendment No. 33 had ordered EPMI to report to the ISO
transactions above the price cap.  We reviewed the FERC Order and concluded
that the FERC had imposed no such obligation.  We decided to do nothing
rather than explain this in a letter to the ISO because the letter could be
quoted out-of-context in the newspaper.  Moreover, it's my understanding
that we have done no transactions over the cap, so, even if the ISO has
correctly interpreted the tariff there would be nothing to provide the ISO.

The ISO is now threatening (see attached E-mail) to bring enforcement
actions against parties that do not report to the ISO transactions above
the price cap (whether or not the transactions are out-of-market).  I could
do one of several things for you at this point:
   Stay quiet
   Send the letter (see attached letter to Eric Hilderbrandt)
   Send the ISO a letter saying we haven't sold anything over the cap and
   will not report unless and until we do
   Call the FERC hotline and ask them to get the ISO off our back
   Ask Sue or Joe to mobilize some action by WPTF or EPSA

I am fearful that if we stay quiet, the ISO will put us on a list (like the
"Dirty 13" list) and we'll end up in the press again.  To lay low, I'm
inclined to pursue options 3 or 4.  What do others think?  Traders - please
verify my understanding about our transactions with the ISO.
(See attached file: Letter to Eric Hilderbrandt.doc)
---------------------- Forwarded by Mary Hain/HOU/ECT on 02/28/2001 03:39
PM ---------------------------


 (Embedded     Enron Capital & Trade Resources Corp.
 image moved
 to file:      From:  "Fuller, Don"
 pic05565.pcx) <DFuller@caiso.com>@caiso.com>
               02/28/2001 03:19 PM






Please respond to "Hildebrandt, Eric" <EHildebrandt@caiso.com>

Sent by:  "Happ, Susan" <SHapp@caiso.com>


To:   ISO Market Participants

<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PAR
TICIPANTS@caiso.com>

cc:
Subject:  CAISO Notice: ISO FERC Tariff  Amendment 33 - Guidelines for Subm
      itting Cost and Supporting Data Documentation.


Attached is information regarding the ISO FERC Tariff Amendment 33 and
reporting guidelines including where to send the requested information.

If you have any questions, please contact Eric Hildebrandt at (916)
608-7123
or EHildebrandt@caiso.com.


>  <<DMA_Letter_Feb27.doc>>  <<DMA Cost Reporting Guidelines.doc>>
>
> Eric Hildebrandt
> Manager of Market Monitoring
> California Independent System Operator
> (916) 608-7123
>

(See attached file: DMA_Letter_Feb27.doc)
(See attached file: DMA Cost Reporting Guidelines.doc)







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