Looks like there is movement here on the working group.
---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on 12/14/99 
01:22 AM ---------------------------


Jose Bestard
12/13/99 12:55 PM
To: Jane Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  

Subject: Re: Full Unbundling of Distribution Companies in Argentina

Jane. Memo to Mike.

Jose
---------------------- Forwarded by Jose Bestard/ENRON_DEVELOPMENT on 
12/13/99 12:54 PM ---------------------------


Jose Bestard
12/13/99 10:59 AM
To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Diomedes 
Christodoulou/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Steven J Kean/HOU/EES@EES 

Subject: Re: Full Unbundling of Distribution Companies in Argentina

FYI 

Jose


---------------------- Forwarded by Jose Bestard/ENRON_DEVELOPMENT on 
12/13/99 10:57 AM ---------------------------


Jose Bestard
12/10/99 09:45 PM
To: Mike G Smith/ENRON_DEVELOPMENT
cc: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ricky Lynn 
Waddell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, George 
Wasaff/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Peter E 
Weidler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Re: Full Unbundling of Distribution Companies in Argentina  

Mike. 

This is one of the policy issues we need to reconcile, not only internally in 
our region but also because of contradictory policy positions in other 
regions as well. This is one of the Agenda Items in our regulatory plan for 
2000. We will establish a working group to look at the issue and the final 
outcome will be a position statement of what Enron stands for.  We know that 
our "flag themes" are competition and customer choices, but  we need to be 
more concrete on situations that require a "close system" as a pre-condition 
for infrastructure development, and then a position of a migration approach 
or milestones to provide greater access and customer choice.

The context is that there are substantial differences in the stage of market, 
regulatory, and infrastructure development in the regions and specific areas 
within the regions ; from "greenfield distribution development opportunity" 
in the southern states of Brazil, to a more mature situation in Argentina and 
elsewhere.  We need to explore these differences and state what are we 
willing to defend. 

The answer "Brazil distribution system is close because it  is in the 
Constitution or in the concessions contracts" is not very uplifting. The 
position "All distribution companies have to allow for full access of all 
customers to their selected supplier" does not address the practical issue of 
greenfield development.   We need to develop a different answer. 

WE SHOULD NOT ASK OTHERS TO WORK UNDER RULES THAT WE WOULD NOT AGREE TO WORK 
UNDER!!!

 WE SHOULD MEAN WHAT WE SAY AND ACT AS WE SAY!!!
 

In order to get an answer that would be accepted not only in our region but 
also globally; we need to explore this issue through a task force.  The first 
task will be to draft a recommendation and later to have it reviewed by 
Executive Management.

The key people in our region for this are:

Business Units heads:  Mike Guerriero, Rick Waddell/Orlando Pupin  (George 
Wasaff and Pete Wielder do you want to get involved now?)

Gas Regulation:  Mike Smith, Guillermo Canovas

Outside the Region:  Jane Wilson, (I am soliciting other names to get a input 
of other experiences in the USA. I will have them later on). We need to 
plan     for their time commitment.

Mike Guerriero has a window of opportunity in Argentina because he is a new 
comer. In order to be productive and do it on a fast time table I would like 
you to organize the meetings and the inputs. Let's set a tentative target to 
get the draft out at the end of January . You need to consult with the other 
people, provide us with a propose plan  and make sure we set aside the time 
and get the time commitment.

Thanks

Jose





Mike G Smith
12/10/99 12:05 PM
To: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ricky Lynn 
Waddell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jose 
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, George 
Wasaff/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Peter E 
Weidler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Guillermo 
Canovas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Gabrielle Bardet/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Full Unbundling of Distribution Companies in Argentina

Guys

We should have a meeting to discuss the above topic. Mike Guerriero is 
proposing that the distribution companies in Argentina should fully unbundle, 
which would include that they get rid of the buying and selling of gas and 
that function would basically be borne by marketers. There are some other 
topics, but this is the one that needs to be discussed internally. 

I propose we have a meeting at 8am Houston time on Wednesday, December 15th  
which is an hour before the risk committee meetings starts. If you cannot be 
there, I would appreciate you sending a representative for you. This topic 
needs to be decided quickly so that a package can be put together for the 
higher end of the government ready to go at the first of the year.

Gabby, could you get a call in number for everyone and distribute to everyone?

thanks

mike