Rogers,

From the short term, my belief is in the current deregulation environment that we only do physical service.  I think Standard Offer Service  will be changing a lot as states work through deregulation issues.

Jay





Rogers Herndon@ECT
05/21/2001 09:38 AM
To:	Sean A Holmes/HOU/EES@EES, James B Wood/EWC/Enron@ENRON, James W Lewis/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES
cc:	Kevin M Presto/HOU/ECT@ECT, John J Lavorato/Enron@EnronXGate, Don Black/HOU/EES@EES 
Subject:	Pending Reg Switch Option Deals?

Everyone -

Are there any Reg Switch Option Deals currently in the pipeline?  Specifically, I mean deals whereby we offer a near term index that goes away either date certain or upon de-reg date and switches to an Index plus adder.  The assumption historically being that we offset the near term discount by purcahsing standard offer service post dereg which is valued lower than index + adder.

On a broader note, do we have ANY deals coming down the pipe that are predicated on us receiving the benefit of Standard Offer Service (date certain or otherwise).  

Jay -  can you come up with a game plan for identifying our potential current MTM-P&L exposure relating to date certain de-reg and standard offer assumptions.

Thanks,
Rogers