See the email below from Andy Ott.  Andy is working on a new FTR product and would like industry feedback.  We could either provide our responses in writing or we could arrange a conference call with Andy so that you all could ask additional questions and have more of a dialogue.  If would like to respond in writing, Tom Hoatson and I will work with you to get everyone's input and prepare our response.

Please let us know.

Thanks

Sarah and Tom

-----Original Message-----
From: ott@pjm.com [mailto:ott@pjm.com]
Sent: Tuesday, October 23, 2001 7:44 AM
To: Novosel, Sarah
Subject: FTR Products 


Sarah,    
I am working with several groups to design a better Financial Transmission
Rights product for PJM (and other RTO regions) and I would like to get feedback
from Enron in several areas ...

1.  Under the current PJM FTR Auction system a customer can request FTRs between
any two points (including Hubs, Zones, etc.). From your perspective, would there
be any benefit to also offering a Financial 'flowgate-type' product in this
auction ?  The product would be like a grouping of FTR paths similar in concept
to the way we group buses to form the Western Hub....  sort of like a Hub for
FTRs design to attempt to get my trading volume (liquidity) in the transmission
rights products. 

2.  As we look forward to a NE RTO, what is the best set of FTR Auction periods
that we should offer ?  ( i.e. Yearly, Monthly, Multi-year, weekly)

3.  How important would a uni-directional FTR product (no down side risk) be to
you.  

4.  Describe what characteristics you are looking for in a Transmission
Congestion hedging product. 

5.  If you had a choice between the products described in items 1 and 3, which
would you want first ?