fyi
---------------------- Forwarded by Joe Paul/HOU/Dynegy on 12/01/2000 11:25
AM ---------------------------


Joe Paul
12/01/2000 11:48 AM

To:   "Pat Gillman" <PGILLMAN@schiffhardin.com>
cc:   <Gene_L_Waas@calpx.com>, kamarlantes@calpx.com

Subject:  Dynegy comments on PX proposed Code of Conduct

Dear Pat,

Attached are the comments of Dynegy regarding the proposed  PX Code of
Conduct. You have received or will shortly receive comments from PG&E and
SCE that Dynegy supports. To the extent that some of the suggested changes
can be adapted to the current rules, (as suggested by PG&E) we would be
willing to assist you in making those changes consistent with our comments.

We continue to believe, as our comments have pointed out, that many of the
suggested changes are vague, overly broad, have no standards of
materiality, fail to distinguish between types of offenses in the
punishment and severity, prohibit the legitimate assertion of procedural
and substantive rights, levies excessive fines, provides for no de novo
review and provide no comfort at all that any information submitted on a
confidential basis will be afforded the proper protection.

I know that considerable effort has gone into the development of these
rules, but it is our position that the proposal you are making goes way
beyond any authority that the PX thinks may have been delegated to it by
FERC. As has been pointed out, the PX is not a self regulating body, but
one that is regulated by FERC.

With respect to our comments, I have used the redline method to highlight
changes and comments to the PX 11-03 draft. On your tool bar there are 3
icons that you can use to navigate through these comments.

As part of my comments regarding the confidentiality tariff (Section
19.3.3), I have referenced a non-disclosure agreement. This is in an
attached file called "protective order". Unfortunately, I could not make
any changes (since it is in a PDF format) but as you read through it, you
can see that it is easily adaptable to a non-disclosure agreement and
covers all the points that I referred to at the last meeting.

Finally, please understand that my failure to comment on any section does
not indicate approval. The areas I pointed out, in addition to those
covered in the PG&E memo, are the major points of departure.

(See attached file: Dynegy Comments 2nd draft code of conduct.DOC)(See
attached file: protective order.pdf)



 - Dynegy Comments 2nd draft code of conduct.DOC
 - protective order.pdf