Jennifer,

Jeff has been tied up today and apologizes for not getting back sooner, but I 
did manage to speak with him re:  the above.

SBX18, if passed, would provide for a Core/ Noncore customer split, similar 
to that of the natural gas markets.  Utilities would be required to establish 
a portfolio of electric supplies to serve the needs of bundled core 
cusomers.  Ninety days after the end of the rate freeze, determined by the 
Commission, customers  with loads greater than 500 kilowatts would not be 
allowed to obtain service from the core portfolio.  Any noncore customer not 
taking electricity directly from an ESP would be provided power by the 
utility exclusively from the spot market and would be charged the cost 
incurred by the  utility in providing such service.

Jeff's assesment is that the bill, in its current form, has less that a 50/50 
chance of passage.  The bill is highly controversial pitting the core against 
noncore customers.  Without any transition period, the bill could have a 
significant negative impact to Enron's current book position.

If you have any additional questions, please feel free to call.  

SBX 18
http://info.sen.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_18_bill_20010125_introdu
ced.pdf