---------------------- Forwarded by Richard Shapiro/HOU/EES on 12/14/99 08:29 
AM ---------------------------


Daniel Allegretti
12/12/99 03:06 PM
To: Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES, Steve 
Montovano/DUB/EES@EES
cc:  
Subject: Eureka Update

Good news and bad news.

First, the good news.  The DPUC issued a final compliance decision (attached) 
Thursday approving the ENA prices and removing the draft language that would 
have released special contract customers.

The bad news is that we are falling behind in finalizing the agreements with 
UI.  Mostly this is due to unavailability of some of the UI personnel.  The 
one business issue that is causing a bit of concern on their end is a fear 
that they have promised us too much in the way of an option on their nuclear 
generation.  In any event, they have already made the commitments in our 
binding MOU.  This issue is not a deal breaker but it is contributing to the 
delay.  Right now we are scheduled to meet with them in NY Tuesday the 14th 
through Thursday the 16th.  As a result, I can not be in Houston on the 15th 
as planned.  I am, however, still trying to make it for the 16th.  Perhaps we 
can reschedule our meeting sometime on the 16th.  Fallon and I are meeting at 
8:30 on the 17th to discuss the project also.