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----- Forwarded by Steven J Kean/NA/Enron on 10/16/2000 10:27 AM -----

	Cynthia Sandherr
	10/12/2000 07:43 PM
		 
		 To: Thomas E White/HOU/EES@EES, Bill Votaw/HOU/EES@EES, John 
Carr/HOU/EES@EES, Laren Dean Tarbet/HOU/EES@EES, Robert Frank/NA/Enron@Enron, 
Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Peggy 
Mahoney/HOU/EES@EES, bmoss@gcpn.com, Allison Navin/Corp/Enron@ENRON
		 cc: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Joe 
Hillings/Corp/Enron@ENRON
		 Subject: Senate Action on DOD Conference Report

Tonight by a vote of 91/2 (although Senator Wellstone was asking to switch 
his vote; so the final vote may end up being 90/3) the Senate passed the 
Conference Report on the DOD Reauthorization, H.R. 4205.  With the 
overwhelming majority votes in both the House and Senate this week, the bill 
will now be enrolled and sent to the President for signature.

Although the statutory language and report language is a clear victory for 
EFS; we did not in the end have the draft colloquy entered into the record 
regarding the enforcement interpretation.  Seems EEI's lawyers had submitted 
a colloquy of their own.  Thus, our colloquy successfully served the purpose 
of blocking theirs which we should list as a "victory" given that their 
colloquy would have been damaging to us.  So in the end, Enron achieved all 
its legislative goals while EEI was unsuccessful in even gaining a statement 
for the record.

Off the record, we did gain acceptance for the issue raised in our colloquy 
by DOD and they stand ready to defend their enforcement authority; possibly 
at the upcoming NARUC meeting.

Bill signature; and thus, Public Law enactment, could occur as early as next 
week.  We will keep you advised as to when this occurs.  Again, 
congratulations to the team for a successful legislative effort against some 
stiff odds.