ATTORNEY-CLIENT PRIVILEGE

I just spoke with ELena Schmid, VP, CAISO.  She said the ISO report and FERC 
filing should be on the web site "soon."

Speaking matter-of-factly, she said that their "60 days" was about to expire, 
so they felt they "had" to file at FERC to tell FERC they need more 
information.  She said the filing asks to extend the 60 days (the 12/15/00 
FERC order had said that, after 60 days to review the pricing for sales above 
the cap -- no refunds would be required).  She said that, primarily, the 
filing asks for a Technical Conference, which the ISO has requested a number 
of times in the past (unsuccessfully). She said the report never mentions 
"refunds." The ISO wants to get access to the same data that FERC has or have 
FERC do its assessment in a more public way.

I told her how the press was spinning the story.   "I was afraid of that," 
said she.  I outlined for her how this plays perfectly into Davis' grand 
strategy. I asked why the ISO felt it had to file to get the data, when 
afterall, this was FERC's job and FERC was doing it.  She said, "Well, the 
Department of Market Analysis has always done this asessment."  I agreed with 
her.  "Yes, they have, but now FERC is doimg it, so who pressured you to do 
this."  "I can't answer that," said she. I suggested they think about the 
spinning factor in the future.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854