Rick -- FYI on Illinois State University
----- Forwarded by Roy Boston/HOU/EES on 07/02/2001 11:24 AM -----

	Roy Boston
	06/29/2001 03:57 PM
		 
		 To: Eric Pitcher, Tim Nowaczyk/HOU/EES@EES
		 cc: Janine Migden/NA/Enron@Enron, Harry Kingerski, jsteffe@enron.com, Barb 
Novak/HOU/EES@EES
		 Subject: Illinois Power and ISU

Eric and Tim -- This is a note to bring you up to date on my attempts to 
resolve the ISU/IP issue.  As you are aware, IP has threatened to impose a 
retroactive standby charge to Illinois State University, our customers, if it 
uses its on site generation for peak shaving purposes this summer.  When ISU 
was an IP customer, the utility did not impose such charges, but noe that 
they have lost their PPO and have reverted to SC21 this was made an issue.

I spoke with Kathy Patton last week and told her the situation.  She 
responded to me today and indicated that a final answer cannot be given until 
early next week because the VP over major accounts is out of the office.  She 
indicated that her peole said that ISU never used on-site generation for peak 
shaving purposesand instead used them only for back-up, hence no standby 
service was required previously.  I told her that that was not accurate and 
that this is a new and unwarranted change in requirements that is not 
supported by IP's tariffs.  I also informed her that the units are 
electrically isolated from IP's system through a make-and-break switch system 
and could obviously not be served by two power sources. Further, since ISU 
has about 25 of these small units scattered around its campus in Normal, 
Illinois, the likelihood that a significant percentage of these units would 
fail and require IP to standby is virtually zero.  I also told her that she 
was in the middle of this and that I did not believe that she was getting the 
full story from her people but that I was not interested in playing a blame 
game, but rather wish to avoid an unnecessary confrontation that serves 
nobody.  She agreed and indicated that she would call me Tuesday, July 3 and 
give me IP's position.  I have positioned this as a misunderstanding on the 
part of IP's account representative.