Rick -- This is a string of e-mails regarding the ISU/Illinois Power issue.  
We did confirm by onsite inspection that the units in question are 
electrically isolated from the utility and therefore do not require standby 
service as mandated by IP.
----- Forwarded by Roy Boston/HOU/EES on 07/02/2001 11:27 AM -----

	Tim Nowaczyk
	06/13/2001 08:56 PM
		 
		 To: Eric G Pitcher/HOU/EES@EES
		 cc: Robert Hurt/HOU/EES@EES, Roy Boston/HOU/EES@EES, David Klimas/HOU/EES, 
Janine Migden/NA/Enron@Enron, Susan M Landwehr/NA/Enron@Enron, Dan 
Burrows/HOU/EES@EES, Marc Ulrich/HOU/EES@EES
		 Subject: Re: ISU and IP

I talked with Sheila Taylor today and the SC21 contract for IP has been 
signed by ISU and is being FedEx back to the Hinsdale office.
---------------------- Forwarded by Tim Nowaczyk/HOU/EES on 06/13/2001 08:54 
PM ---------------------------


Tim Nowaczyk
06/12/2001 08:49 PM
To: Eric G Pitcher/HOU/EES@EES
cc: Robert Hurt/HOU/EES@EES, Roy Boston/HOU/EES@EES, David Klimas/HOU/EES, 
Janine Migden/NA/Enron@Enron, Susan M Landwehr/NA/Enron@Enron, Dan 
Burrows/HOU/EES@EES, Marc Ulrich/HOU/EES@EES 
Subject: Re: ISU and IP

In my original letter to ISU attached to the contract they were directed to 
return the signed contract to my attention.  In addition, as a follow up to 
our telephone conversation I have sent a Email restating that the signed SC21 
contract needs to come back to my office.  I will also place a call to Sheila 
Taylor to make sure that ISU returns the executed document to Enron and not 
IP.
---------------------- Forwarded by Tim Nowaczyk/HOU/EES on 06/12/2001 08:44 
PM ---------------------------

	Enron Energy Services
	
	From:  Eric G Pitcher                           06/12/2001 07:21 PM
	Phone No: 630 654-6482
	



To: Tim Nowaczyk/HOU/EES@EES
cc: Robert Hurt/HOU/EES@EES, Roy Boston/HOU/EES@EES, Susan M 
Landwehr/NA/Enron@Enron, Janine Migden/NA/Enron@Enron, David 
Klimas/HOU/EES@EES, Dan Burrows/HOU/EES@EES, Marc Ulrich/HOU/EES@EES 
Subject: Re: ISU and IP

Tim ... this email is to confirm our conversation from earlier this evening.

Before the SC 21 agreement is executed/sent to Illinois Power Co., the 
proposal to raise the issue of ISU's right of ability to use backup 
generators before the Illinois Commerce Commission should be reviewed with 
the (EES) Office of the Chairman.  

Although this will delay the process, we need to make sure we do not conflict 
with any initiatives, or other efforts of which we may not be aware.  

If you have any questions, pls page me at 888-948-5919.

Thanks.
---------------------- Forwarded by Eric G Pitcher/HOU/EES on 06/12/2001 
07:03 PM ---------------------------


Tim Nowaczyk
06/11/2001 08:54 PM
To: Eric G Pitcher/HOU/EES@EES
cc: Roy Boston/HOU/EES@EES, Susan M Landwehr/NA/Enron@Enron, Janine 
Migden/NA/Enron@Enron, Dave Klimas, Dan Burrows/HOU/EES@EES, Marc 
Ulrich/HOU/EES@EES 
Subject: Re: ISU and IP

I have requested written confirmation from ISU and also scheduling a visit by 
two (2) EFS engineers to visit the facilities to confirm that the generators 
are isolated.  The contract for SC21 with IP's letter has been sent to ISU 
for signature by Ron Jones.  Upon its execution the contract will be returned 
to my office for forwarding to IP.
---------------------- Forwarded by Tim Nowaczyk/HOU/EES on 06/11/2001 08:49 
PM ---------------------------

	Enron Energy Services
	
	From:  Eric G Pitcher                           06/10/2001 02:19 PM
	Phone No: 630 654-6482
	



To: Tim Nowaczyk/HOU/EES@EES
cc: Roy Boston/HOU/EES@EES, Janine Migden/NA/Enron@Enron, Susan M 
Landwehr/NA/Enron@Enron, David Klimas/HOU/EES@EES, Dan Burrows/HOU/EES@EES, 
Ron Girard/HOU/EES@EES 
Subject: Re: ISU and IP

Tim ... pls get written confirmation that ISU's generating units are 
isolated, and sign ISU to the IP service agreement for SC 21.

Thanks.
---------------------- Forwarded by Eric G Pitcher/HOU/EES on 06/10/2001 
02:16 PM ---------------------------

Marc Ulrich
06/10/2001 11:19 AM


To: Eric G Pitcher/HOU/EES@EES
cc: Tim Nowaczyk/HOU/EES@EES, Roy Boston/HOU/EES@EES, Janine 
Migden/NA/Enron@Enron, Susan M Landwehr/NA/Enron@Enron, David 
Klimas/HOU/EES@EES 
Subject: Re: ISU and IP  


I agree with Roy.  Please pull the trigger on your recommendation.  

An estimate of the avoided charges is $30,000 per month ($12/kW demand charge 
*  2,500 kW generator).

Marc





	Enron Energy Services
	
	From:  Eric G Pitcher                           06/07/2001 01:26 PM
	Phone No: 630 654-6482
	



To: Tim Nowaczyk/HOU/EES@EES, Roy Boston/HOU/EES@EES
cc: Marc Ulrich/HOU/EES@EES, Janine Migden/NA/Enron@Enron, Susan M 
Landwehr/NA/Enron@Enron, David Klimas/HOU/EES@EES 
Subject: ISU and IP

Roy and Tim ... if we decide to go to the ICC,  need to brief my mgmt on the 
following:

Potential impact on our contractual obligations to ISU, given the various 
actions that IP may take (eg: retroactive change of tariif);
Potential financial impact to EES, given the various actions IP may take.

I'll see Bob Hurt on Mon., 6/11 in Houston, and will brief him on the 
situation.

Thanks.
---------------------- Forwarded by Eric G Pitcher/HOU/EES on 06/07/2001 
01:23 PM ---------------------------
From: Roy Boston on 06/07/2001 12:55 PM
To: Tim Nowaczyk/HOU/EES@EES, Marc Ulrich/HOU/EES@EES
cc: Eric G Pitcher/HOU/EES@EES, Janine Migden/NA/Enron@Enron, Susan M 
Landwehr/NA/Enron@Enron 
Subject: ISU and IP

Tim and Marc -- I have looked over Conrad Siudyla's May 31, 2001 letter to 
you and have the following comments.  First, he is patently threatening the 
customer and Enron that if the self-gen units are parallel or regularly run 
as peak shavers ( "IP reserves the right to periodically inspect all 
generators at the ISU campus to ensure that they are electrically isolated 
and that they are not being used on a regular basis for peak shaving") 
standby service is required and will be applied retroactively to the 
contract.  Clearly IP intends to back bill Enron once ISU operates its peak 
shaving plants and impose a huge charge on us.  It is imperative that we have 
our rights straight: 
 First, that the peak shavers are isolated and not parallel;
 Second, that we are comfortable with having to enforce our rights at the 
ICC; and
 Third, that the customer has an unfettered right to operate its self-gen 
units as peak shavers.

 Therefore I propose that we obtain written veification from the customer 
that the units are truly isolated. The customer will need to run its units to 
peak shave in at least August so the threat expressed that such use will 
trigger a retroactive back bill should be taken seriously.
 The anticompetitive situation described above needs to be raised at the 
Commission now.  We need to ensure that the ICC will enforce IP's tariffs in 
a manner consistent with our interpretation of the customer's (and hence 
Enron's as agent) rights under the tariffs.