Please see attached brief note on the above.

Material on the market manipulation question will be ready within an hour or
so.


Seabron



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Seabron Adamson
Frontier Economics Inc
Two Brattle Square
Cambridge, MA 02138 USA
Ph:  (617) 354-0060
Fax: (617) 354-0640
seabron.adamson@frontier-economics.com

www.frontier-economics.com

-----Original Message-----
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Friday, January 26, 2001 8:26 PM
To: Elizabeth.Linnell@enron.com
Cc: Alan.Comnes@enron.com; David.Parquet@enron.com;
James.D.Steffes@enron.com; John.Neslage@enron.com;
Margaret.Carson@enron.com; Mary.Schoen@enron.com; mday@gmssr.com;
Richard.B.Sanders@enron.com; Sandra.McCubbin@enron.com;
seabron.adamson@frontier-economics.com; Steve.Walton@enron.com;
Steven.J.Kean@enron.com; Susan.J.Mara@enron.com
Subject: Re: Urgent - Steve Kean to testify at Senate hearing, need info



One note: recall that with respect to market manipulation, one of the most
common accusations focused on the problems caused by the PX manipulation
the utilities engaged in thanks to their monopsony (demand-side bidding)
market power.

Jeff



                    Elizabeth
                    Linnell              To:     Mary Schoen/NA/Enron@Enron,
David
                                         Parquet/SF/ECT@ECT, Richard B
                    01/26/2001           Sanders/HOU/ECT@ECT, John
                    12:24 PM
Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
                                         Margaret Carson/Corp/Enron@ENRON,

seabron.adamson@frontier-economics.com, Susan J
                                         Mara/NA/Enron@ENRON, Jeff
                                         Dasovich/NA/Enron@Enron, Sandra
                                         McCubbin/SFO/EES@EES, Steve
Walton/HOU/ECT@ECT,
                                         Alan Comnes/PDX/ECT@ECT,
mday@gmssr.com
                                         cc:     Steven J
Kean/NA/Enron@Enron, James D
                                         Steffes/NA/Enron@Enron
                                         Subject:     Urgent - Steve Kean to
testify at
                                         Senate hearing, need info




Steve Kean will be testifying at the Senate Energy Committee's hearing on
Wednesday regarding California.  Steve and Jim Steffes asked me to contact
you for the following information.  I've listed specific requests for
several people, but am copying many more of you for your input as well.
Anything you can provide by sometime on Monday will be appreciated!

Dave Parquet - Siting of new power plants in California.  Any insight you
can provide regarding the rules, the current climate, what would fix the
current situation, etc.

Richard Sanders - Steve thinks he might be asked about whether the market
was manipulated.  Please provide information on whether this was the case
and who the participants likely were.  What's the current climate regarding
sanctions, etc.?

Mary Schoen - Any information you can provide relating to air emission
issues in California, and specific details for our recommendations
regarding air emissions.

Steve Walton - The status on RTO West, Desert Star, Cal ISO and general
information on RO development.

Sue Mara - Specific ordering language requiring the utilities to buy only
from the PX.  Was it required through legislation or the CPUC, and what
exactly does it mean.  Who was involved in formulating the language?
Information on block forward markets.

Alan Comnes - A copy of the CDWR response and anything they might have
available regarding long term proposals from the government.

Dan Allegretti - We have the e-mail Jim sent regarding the UI deal.  Please
provide more specifics on the deal, and information regarding portfolio
management approach.

Thanks for your help!



 - 01-01-26 SA Memo on PX purchasing and forwards contracting.doc