This is my last edit.

I.    Market Designs
B.   
Paragraph 3 - Should be rewritten as follows:

In sum, the Commission's proposal for a soft cap, combined with the complex 
nature of the reporting requirement and refund potential has introduced 
substantial uncertainty in the market and therefore substantial risk of and 
disincentive to do business in the California market.  To ensure 
participation, the Commission needs to create clear, uncomplicated review 
standards.  In addition, if the Commission insists on a cap it must at a 
minimum establish a higher hard price cap and provide that the refund 
obligation will not be applicable to sales below that level.  Such a safe 
harbor is required to prevent disincentives to the development of new 
generation and to ensure liquidity and reliability in the California market. 
---------------------- Forwarded by Mary Hain/HOU/ECT on 11/22/2000 12:45 PM 
---------------------------


Mary Hain
11/22/2000 12:31 PM
To: carrrn@bracepatt.com, James D Steffes/NA/Enron@Enron, Susan J 
Mara/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT
cc:  
Subject: Changes to Ron's draft

I. Market Design
A. Delete the clause beginning "at a minimum ...." from the title.

Paragraph 7 beginning "If the Commission insists . . . ."

add "As discussed by Mr. Comnes,"  at the beginning of the sentence 
delete the "at minimum, $250 per MWh - and"
delete the rest of the paragraph (except footnote 4) beginning with "This is 
so for several reasons . . . "  I would put footnote 4 in as text.