---------------------- Forwarded by Lamar Frazier/HOU/EES on 11/16/2001 12:04 PM ---------------------------

Delivery Failure Report
Your document:	Jack in the Box	
was not delivered to:	James D Steffes/HOU/EES@EES	
because:	User James D Steffes/HOU/EES (James D Steffes/HOU/EES@EES) not listed in public Name & Address Book	


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EESHOU-LN12/EES, EESHOU-LN12/EES

________________________


To:	James D Steffes/HOU/EES@EES
cc:	
From:	Lamar Frazier/HOU/EES
Date:	11/16/2001 12:02:42 PM
Subject:	Jack in the Box


---------------------- Forwarded by Lamar Frazier/HOU/EES on 11/16/2001 12:02 PM ---------------------------

	Enron Energy Services  From:  Michele Sorensen                           11/06/2001 04:57 PM Phone No: 562 901 3807 Office   714 813-0742 Cell   888 578 8404 Pager	
		




To:	Andrew Wu/HOU/EES@EES, Mike D Smith/HOU/EES@EES
cc:	Lamar Frazier/HOU/EES@EES, Ian McAbeer/HOU/EES@EES 
Subject:	Jack in the Box

Andy and Mike,

Jack in the Box is in the process of opening 14 new stores in CA.  They have requested these stores be added to the Enron Agreement.   
Based on the recent information from the CPUC - can we add new facilities to the Jack in the Box contract?

Here's the CPUC language:

"We reaffirm that for the time being, and unless the Commission states
 otherwise in a subsequent decision, utilities are required to process DASRs
 relating to contracts or agreements that were executed on or before 
September 20th, 2001, including DASRs for service to new facilities or
 accounts if the underlying contract pursuant to which those DASRs
 are submitted allowed for the provision of that additional service.  Thus,
 for example, with respect to the specific ESP contract described by 
UC/CSU in their rehearing application, the utilities are required to accept,
 even after September 20, 2001, any DASRs they receive that legitimatley
 relate to that contract...[W]e want to make it clear that...utilities cannot 
set a deadline after which they could refuse to process DASRs relating 
to contracts executed on or before September 20, 2001." 

Here's the provision in the Jack in the Box contract:


ADDITIONAL FACILITIES	At any time during the term of this Transaction, you may request that we add to this Transaction certain additional facilities owned and operated by you on mutually agreeable terms and conditions, including pricing.  If the account(s) at such facility(ies) is/are eligible to receive "direct access service" and the Parties are able to agree to the terms and conditions for adding any such additional facility(ies), the Parties will execute an appropriate amendment to this Transaction effecting such addition.	


Please advise.
Thanks, Michele