Three comments ("severe" concerns?) which I am sorry I was unable to
deliver before the draft order went out to all parties:

1.  I share Robert Fallon's concern.  Although the judge did say at
Monday's prehearing conference that she would accept a party's "ballpark
estimate" of its ripple claims, the express inclusion of a procedure for
ripple claim offers of proof could later harm a party that remains silent
on this issue, despite the draft order's statement that offers of proof are
"not required."

2.  The draft order might benefit from an up-front definition of ripple
claims.  First, though, we need to make sure that we all agree on the
meaning of the terms that we are using.  Depending on how we define ripple
claims, it seems to me that a counterclaim or a cross-claim could indeed be
a ripple claim, and we need to be sure that we are not prejudiced by
failing to assert such claims now.  A counterclaim is my claim against
somebody who has asserted a claim against me.  A cross-claim is my claim
against a third party who has NOT asserted a claim against me.  (As for
"offset," I have been under the impression that we have been using that
term to describe a deduction that may validly be made from a refund amount
that I am deemed to owe another party -- particularly, a deduction
occasioned by that other party's unpaid bill from me.)  Presumably, each of
us knows who sold power to us and the prices for those sales.  Therefore,
should I so choose, I already have the ability to assert a refund claim
against any of the entities that sold to me -- whether the seller has made
a claim against me (making my refund claim a counterclaim) or has not made
a claim against me (making my refund claim a cross-claim).  But given my
opposition to ANY refunds in this case, I would prefer to refrain from
asserting my own refund claims (whether counterclaims or cross-claims),
while reserving my right to do so in the future should the need arise.
Perhaps we should define a ripple claim simply as any refund claim that
could potentially be asserted by a party that has expressed an opposition
to refunds in this case.  That way, we could maintain a unified front of
opposition to refunds without being prejudiced in any way from seeking our
own refunds if it should come to that.  In testimony and other filings, we
would make it clear that any refund directive would open the Pandora's box
of wave after wave of ripple claims, but we would not need to quantify them
now.

3.  The draft order, in the title, "defer[s] ripple claims to a later phase
in this proceeding."  We want this proceeding to die -- not to live on in
later phases.  Shouldn't the order simply EXCLUDE ripple claims as beyond
the scope of the proceeding?


________________________________________



                              Kevin J. McIntyre
                              Jones, Day, Reavis & Pogue
                              51 Louisiana Avenue, N.W.
                              Washington, D.C.  20001-2113

                              Telephone 202-879-3917
                              Telecopier 202-626-1700

                              http://www.jonesday.com/





                    "Fallon, Robert"
                    <FallonR@dsmo.co     To:     "'ajweinstein@morganlewis.com'" <ajweinstein@morganlewis.com>,
                    m>                      "Longstreth, John (DC)" <JOHNL@prestongates.com>, "'aba@vnf.com'"
                                            <aba@vnf.com>, "'achau@tractebelpowerinc.com'"
                                            <achau@tractebelpowerinc.com>, "'acomnes@enron.com'"
                    08/22/01 11:34          <acomnes@enron.com>, "'afishman@bracepatt.com'"
                    AM                      <afishman@bracepatt.com>, "'Al_Alexanderson@pgn.com'"
                                            <Al_Alexanderson@pgn.com>, "'amie.colby@troutmansanders.com'"
                                            <amie.colby@troutmansanders.com>, "'antoine.cobb@troutmansanders.com'"
                                            <antoine.cobb@troutmansanders.com>, "'aw_turner@pgn.com'"
                                            <aw_turner@pgn.com>, "'ayudkowsky@stroock.com'"
                                            <ayudkowsky@stroock.com>, "'bblair@ThompsonCoburn.com'"
                                            <bblair@ThompsonCoburn.com>, "'biggsbg@BP.com'" <biggsbg@BP.com>,
                                            "'bmz@vnf.com'" <bmz@vnf.com>, "'breilley@coral-energy.com'"
                                            <breilley@coral-energy.com>, "'callen@akingump.com'"
                                            <callen@akingump.com>, "'cfr@vnf.com'" <cfr@vnf.com>,
                                            "'cgoligoski@avistaenergy.com'" <cgoligoski@avistaenergy.com>,
                                            "'cmfoley@skadden.com'" <cmfoley@skadden.com>, "'danadamson@dwt.com'"
                                            <danadamson@dwt.com>, "'darezina@mwe.com'" <darezina@mwe.com>,
                                            "'david.facey@powerex.com'" <david.facey@powerex.com>,
                                            "'david.tewksbury@lw.com'" <david.tewksbury@lw.com>,
                                            "'ddickson@avistaenergy.com'" <ddickson@avistaenergy.com>,
                                            "'deb@a-klaw.com'" <deb@a-klaw.com>, "'debra.bolton@mirant.com'"
                                            <debra.bolton@mirant.com>, "'dezickson@mwe.com'" <dezickson@mwe.com>,
                                            "'dking@bracepatt.com'" <dking@bracepatt.com>,
                                            "'gborovas@morganlewis.com'" <gborovas@morganlewis.com>,
                                            "'dmj@sloverandloftus.com'" <dmj@sloverandloftus.com>,
                                            "'dmperlman@powersrc.com'" <dmperlman@powersrc.com>, "Kaplan, Don
                                            (DC)" <donk@prestongates.com>, "'doug.little@powerex.com'"
                                            <doug.little@powerex.com>, "'dwatkiss@bracepatt.com'"
                                            <dwatkiss@bracepatt.com>, "'efinklea@energyadvocates.com'"
                                            <efinklea@energyadvocates.com>, "'eperrigo@epsa.org'"
                                            <eperrigo@epsa.org>, "Fallon, Robert" <FallonR@dsmo.com>,
                                            "'fchu@legal.ladwp.com'" <fchu@legal.ladwp.com>,
                                            "'fnorton@morganlewis.com'" <fnorton@morganlewis.com>, "'gdb@vnf.com'"
                                            <gdb@vnf.com>, "'gfergus@brobeck.com'" <gfergus@brobeck.com>,
                                            "'gfhull@bpa.gov'" <gfhull@bpa.gov>, "'gmathews@edisonmission.com'"
                                            <gmathews@edisonmission.com>, "'gmgalloway@stoel.com'"
                                            <gmgalloway@stoel.com>, "'greg.jones@elpaso.com'"
                                            <greg.jones@elpaso.com>, "'haskell@bh-law.com'" <haskell@bh-law.com>,
                                            "'hhs@ballardspahr.com'" <hhs@ballardspahr.com>,
                                            "'issers@ballardspahr.com'" <issers@ballardspahr.com>, "xx-Dillon,
                                            Jesse (PPL)" <jadillon@pplweb.com>, "'james.beh@troutmansanders.com'"
                                            <james.beh@troutmansanders.com>, "'James.D.Steffes@enron.com'"
                                            <James.D.Steffes@enron.com>, "'jcf@vnf.com'" <jcf@vnf.com>,
                                            "'jchristian@jonesday.com'" <jchristian@jonesday.com>,
                                            "'jdp@dwgp.com'" <jdp@dwgp.com>, "'jdwatkiss@aol.com'"
                                            <jdwatkiss@aol.com>, "'jennifer_nichols@transcanada.com'"
                                            <jennifer_nichols@transcanada.com>, "'jhtribulski@verner.com'"
                                            <jhtribulski@verner.com>, "'jimvasile@dwt.com'" <jimvasile@dwt.com>,
                                            "'jjava@bracepatt.com'" <jjava@bracepatt.com>,
                                            "'jlgreene@energyadvocates.com'" <jlgreene@energyadvocates.com>,
                                            "'jmathis@edisonmission.com'" <jmathis@edisonmission.com>,
                                            "'JS@verner.com'" <JS@verner.com>, "'jsimon@epsa.org'"
                                            <jsimon@epsa.org>, "'jthompson@idacorpenergy.com'"
                                            <jthompson@idacorpenergy.com>, "'karen.cottrell@constellation.com'"
                                            <karen.cottrell@constellation.com>, "'kbarron@skadden.com'"
                                            <kbarron@skadden.com>, "'kcurry@bracepatt.com'"
                                            <kcurry@bracepatt.com>, "'kirvin@mofo.com'" <kirvin@mofo.com>,
                                            "'kjmcintyre@jonesday.com'" <kjmcintyre@jonesday.com>,
                                            "'kknitte@gcpud.org'" <kknitte@gcpud.org>, "'kmdowney@hhlaw.com'"
                                            <kmdowney@hhlaw.com>, "'KZeitlin@mofo.com'" <KZeitlin@mofo.com>,
                                            "'lacker@llgm.com'" <lacker@llgm.com>, "'lchurch@epsa.org'"
                                            <lchurch@epsa.org>, "'linda.robertson@enron.com'"
                                            <linda.robertson@enron.com>, "'lisa.decker@powersrc.com'"
                                            <lisa.decker@powersrc.com>, "'lisa.dowden@spiegelmcd.com'"
                                            <lisa.dowden@spiegelmcd.com>, "'lsg@dwgp.com'" <lsg@dwgp.com>,
                                            "'ltopaz@gcpud.org'" <ltopaz@gcpud.org>, "'mam@vnf.com'"
                                            <mam@vnf.com>, "'marzmj@BP.com'" <marzmj@BP.com>,
                                            "'meg.meiser@spiegelmcd.com'" <meg.meiser@spiegelmcd.com>,
                                            "'michaelearly@earthlink.net'" <michaelearly@earthlink.net>,
                                            "'michael.gergen@lw.com'" <michael.gergen@lw.com>,
                                            "'mike.macdougall@powerex.com'" <mike.macdougall@powerex.com>,
                                            "'mkamine@legal.ladwp.com'" <mkamine@legal.ladwp.com>,
                                            "'mmilner@coral-energy.com'" <mmilner@coral-energy.com>,
                                            "'mphilips@pwrteam.com'" <mphilips@pwrteam.com>, "'mrp@dwgp.com'"
                                            <mrp@dwgp.com>, "'msundback@andrews-kurth.com'"
                                            <msundback@andrews-kurth.com>, "'neil_levy@dc.kirkland.com'"
                                            <neil_levy@dc.kirkland.com>, "'Paramfjord@stoel.com'"
                                            <Paramfjord@stoel.com>, "Perlis, Mark" <PerlisM@dsmo.com>,
                                            "'pfg@vnf.com'" <pfg@vnf.com>, "'pfox@bracepatt.com'"
                                            <pfox@bracepatt.com>, "'phillip_fantle@cargill.com'"
                                            <phillip_fantle@cargill.com>, "'randall.osteen@constellation.com'"
                                            <randall.osteen@constellation.com>, "'ray.alvarez@ei.enron.com'"
                                            <ray.alvarez@ei.enron.com>, "'rbeitler@sempratrading.com'"
                                            <rbeitler@sempratrading.com>, "'rcarroll@bracepatt.com'"
                                            <rcarroll@bracepatt.com>, "'rcjosephson@stoel.com'"
                                            <rcjosephson@stoel.com>, "'rdr@sloverandloftus.com'"
                                            <rdr@sloverandloftus.com>, "'rfoiani@gcpud.org'" <rfoiani@gcpud.org>,
                                            "'rfrank@enron.com'" <rfrank@enron.com>, "'rich.glick@pacificorp.com'"
                                            <rich.glick@pacificorp.com>, "'rick.warman@elpaso.com'"
                                            <rick.warman@elpaso.com>, "'rneate@puget.com'" <rneate@puget.com>,
                                            "'rnotebo@gcpud.org'" <rnotebo@gcpud.org>,
                                            "'robert.edwards@troutmansanders.com'"
                                            <robert.edwards@troutmansanders.com>,
                                            "'robert.mcdiarmid@spiegelmcd.com'" <robert.mcdiarmid@spiegelmcd.com>,
                                            "'ron_w_johnson@pgn.com'" <ron_w_johnson@pgn.com>,
                                            "'sbehrend@llgm.com'" <sbehrend@llgm.com>,
                                            "'shana.jones@constellation.com'" <shana.jones@constellation.com>,
                                            "'skelley@bracepatt.com'" <skelley@bracepatt.com>, "'smara@enron.com'"
                                            <smara@enron.com>, "'smn@dwgp.com'" <smn@dwgp.com>,
                                            "'snovose@enron.com'" <snovose@enron.com>,                             
                                            "'sterling_koch@transalta.com'" <sterling_koch@transalta.com>,
                                            "'tabors@tca-us.com'" <tabors@tca-us.com>, "'tculber@gcpud.org'"
                                            <tculber@gcpud.org>, "'timothy.bolden@pinnaclewest.com'"
                                            <timothy.bolden@pinnaclewest.com>, "Rizzo, Sandra (DC)"
                                            <SandraR@prestongates.com>, "'ttiehen@tenaska.com'"
                                            <ttiehen@tenaska.com>, "'wld@dwgp.com'" <wld@dwgp.com>,
                                            "'myuffee@mwe.com'" <myuffee@mwe.com>, "'jmcgrane@morganlewis.com'"
                                            <jmcgrane@morganlewis.com>, "'tgadsden@morganlewis.com'"
                                            <tgadsden@morganlewis.com>
                                         cc:
                                         Subject:     RE: Revised Ripple Claim Order





I was unable to attend the prehearing conference on Monday.  However, I
question why the Judge wants the sentence at the end of the first full
paragraph starting with "In lieu of such claims...".  That sentence totally
destroys  what I thought she was trying to accomplish, i.e. keep ripple
claims out of this proceeding.  It says that you can submit an offer of
proof estimating the amount of ripple claims and she will certify that to
the Commission.  In order to protect themselves, won't that just mean that
market participants will submit their estimate of ripple refunds due and we
will back in the same boat we were trying to get away from?

Thanks

Robert Fallon

-----Original Message-----
From: ajweinstein@morganlewis.com [mailto:ajweinstein@morganlewis.com]
Sent: Wednesday, August 22, 2001 11:06 AM
To: 'ajweinstein@morganlewis.com'; Longstreth, John (DC); 'aba@vnf.com';
'achau@tractebelpowerinc.com'; 'acomnes@enron.com';
'afishman@bracepatt.com'; 'Al_Alexanderson@pgn.com';
'amie.colby@troutmansanders.com'; 'antoine.cobb@troutmansanders.com';
'aw_turner@pgn.com'; 'ayudkowsky@stroock.com';
'bblair@ThompsonCoburn.com'; 'biggsbg@BP.com'; 'bmz@vnf.com';
'breilley@coral-energy.com'; 'callen@akingump.com'; 'cfr@vnf.com';
'cgoligoski@avistaenergy.com'; 'cmfoley@skadden.com';
'danadamson@dwt.com'; 'darezina@mwe.com'; 'david.facey@powerex.com';
'david.tewksbury@lw.com'; 'ddickson@avistaenergy.com'; 'deb@a-klaw.com';
'debra.bolton@mirant.com'; 'dezickson@mwe.com'; 'dking@bracepatt.com';
'gborovas@morganlewis.com'; 'dmj@sloverandloftus.com';
'dmperlman@powersrc.com'; Kaplan, Don (DC); 'doug.little@powerex.com';
'dwatkiss@bracepatt.com'; 'efinklea@energyadvocates.com';
'eperrigo@epsa.org'; 'fallonr@dsmo.com'; 'fchu@legal.ladwp.com';
'fnorton@morganlewis.com'; 'gdb@vnf.com'; 'gfergus@brobeck.com';
'gfhull@bpa.gov'; 'gmathews@edisonmission.com'; 'gmgalloway@stoel.com';
'greg.jones@elpaso.com'; 'haskell@bh-law.com'; 'hhs@ballardspahr.com';
'issers@ballardspahr.com'; xx-Dillon, Jesse (PPL);
'james.beh@troutmansanders.com'; 'James.D.Steffes@enron.com';
'jcf@vnf.com'; 'jchristian@jonesday.com'; 'jdp@dwgp.com';
'jdwatkiss@aol.com'; 'jennifer_nichols@transcanada.com';
'jhtribulski@verner.com'; 'jimvasile@dwt.com'; 'jjava@bracepatt.com';
'jlgreene@energyadvocates.com'; 'jmathis@edisonmission.com';
'JS@verner.com'; 'jsimon@epsa.org'; 'jthompson@idacorpenergy.com';
'karen.cottrell@constellation.com'; 'kbarron@skadden.com';
'kcurry@bracepatt.com'; 'kirvin@mofo.com'; 'kjmcintyre@jonesday.com';
'kknitte@gcpud.org'; 'kmdowney@hhlaw.com'; 'KZeitlin@mofo.com';
'lacker@llgm.com'; 'lchurch@epsa.org'; 'linda.robertson@enron.com';
'lisa.decker@powersrc.com'; 'lisa.dowden@spiegelmcd.com';
'lsg@dwgp.com'; 'ltopaz@gcpud.org'; 'mam@vnf.com'; 'marzmj@BP.com';
'meg.meiser@spiegelmcd.com'; 'michaelearly@earthlink.net';
'michael.gergen@lw.com'; 'mike.macdougall@powerex.com';
'mkamine@legal.ladwp.com'; 'mmilner@coral-energy.com';
'mphilips@pwrteam.com'; 'mrp@dwgp.com'; 'msundback@andrews-kurth.com';
'neil_levy@dc.kirkland.com'; 'Paramfjord@stoel.com'; 'perlism@dsmo.com';
'pfg@vnf.com'; 'pfox@bracepatt.com'; 'phillip_fantle@cargill.com';
'randall.osteen@constellation.com'; 'ray.alvarez@ei.enron.com';
'rbeitler@sempratrading.com'; 'rcarroll@bracepatt.com';
'rcjosephson@stoel.com'; 'rdr@sloverandloftus.com'; 'rfoiani@gcpud.org';
'rfrank@enron.com'; 'rich.glick@pacificorp.com';
'rick.warman@elpaso.com'; 'rneate@puget.com'; 'rnotebo@gcpud.org';
'robert.edwards@troutmansanders.com'; 'robert.mcdiarmid@spiegelmcd.com';
'ron_w_johnson@pgn.com'; 'sbehrend@llgm.com';
'shana.jones@constellation.com'; 'skelley@bracepatt.com';
'smara@enron.com'; 'smn@dwgp.com'; 'snovose@enron.com';
'sterling_koch@transalta.com'; 'tabors@tca-us.com'; 'tculber@gcpud.org';
'timothy.bolden@pinnaclewest.com'; Rizzo, Sandra (DC);
'ttiehen@tenaska.com'; 'wld@dwgp.com'; 'myuffee@mwe.com';
'jmcgrane@morganlewis.com'; 'tgadsden@morganlewis.com'
Subject: Revised Ripple Claim Order



John McGrane asked me to send this email to the TFG.

Attached is a revised version of the Ripple Claim order, which reflects the
recently expressed views of Enron, Powerex and PPL (indeed, it is their
draft); we need to send this out soon, so unless someone has SEVERE
concerns, it will go out to the service list around 11:30 am and to the
judge early this afternoon

John D. McGrane
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C.   20036
(202) 467-7621
Fax: (877) 432-9652
jmcgrane@morganlewis.com
www.morganlewis.com

      (See attached file: Revised Proposed Order on Ripple Claims.DOC)

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