Mark:

What is our policy about giving on arbitration.  This is a federal entity 
that has said they cannot agree to arbitration.  They have agreed to the 
language set forth in the document attached below.

Please advise.

Leslie
----- Forwarded by Leslie Hansen/HOU/ECT on 08/24/2000 02:59 PM -----

	"Kathleen (Kass) Portra" <Portra@wapa.gov>
	08/24/2000 03:01 PM
		 
		 To: <Leslie.Hansen@enron.com>
		 cc: 
		 Subject: Re: trading agreement


Leslie
I know this will cause delays, but this agency does not have authority to 
enter into binding arbitration.  Apparently some agencies do have that 
authority.  I have attached 2 files.  One is with the changes highlighted and 
the other is a clean copy of what we would be willing to sign.  Please let me 
know what sort of timeframe I can expect on a response to this proposal.

Thanks - Kass Portra

 - Western Area Power Admin ETAkp.doc
 - Western Area Power Admin ETArjk.doc