Rick:  This will give you an idea of the kinds of work we're doing for the Weather group.   Elsa is now in this group, by the way.  She is helping to develop weather products for EES/ENA.   

I think this project - which is broader than weather - is very exciting.   

Lisa
 -----Original Message-----
From: 	Piekielniak, Elsa  
Sent:	Tuesday, August 07, 2001 10:15 AM
To:	Yoho, Lisa
Subject:	RE: Government Affairs and Weather


Great memo.  I'll look forward to meeting re: the following.
See ya, Elsa

P.S.  I had a 'Cosmopoliton' w/ my husband at Las Alamedas the other day and it was soooooooo strong.
We'll have to have drinks and catch up some time.
 -----Original Message-----
From: 	Yoho, Lisa  
Sent:	Tuesday, August 07, 2001 9:48 AM
To:	Tawney, Mark
Cc:	Piekielniak, Elsa; Norton, Timothy M.; Arefieva, Maria
Subject:	Government Affairs and Weather

Mark:

I would like to schedule a meeting with your group and Government Affairs.  As I'm sure Tim has told you, we have devoted a significant amount of time over the past few months on projects designed to promote Weather products:  

State-by-state matrix:  Masha has put together a state-by-state summary of regulatory / utility activity with respect to hedging in general, and weather hedging specifically.  This matrix shows the mindset of the regulators and utilities for each of the states.   Are regulators encouraging hedging?  are they allowing passthrough of costs?  are they addressing weather in any fashion?  You'll find the answers to these questions - and more - in Masha's matrix.  This will hopefully help you to target and prioritize origination opportunities.

Risk Management White Paper:   Government Affairs has developed a "white paper" which talks about the benefits of hedging and risk management, which we will use in the states to advocate market-based solutions to price and weather risk management.  

Georgia Power Case:   Harry Kingerski and I will be developing testimony in the Georgia Power case which will recommend that the Commission reject Georgia Power's performance-based weather proposal, and will advocate that the Commission require Georgia Power to utilize weather derivative products provided by Enron and others.   Our hope is that we will create a precedent for these types of products in other states as well. 

We would like to meet with your group to walk through each of these projects, and to help identify origination opportunities with LDCs and electric utilities.   Let me know what works for you and your team.

Thanks,

Lisa