-----Original Message-----
From: 	Mandelker, Jeannie  
Sent:	Tuesday, June 05, 2001 5:28 PM
To:	Kaminski, Vince J
Subject:	TVA

Here's what I read about TVA.
Now I'll look into Kline (Klein?) and The Woodlands.

Jeannie
---------------------- Forwarded by Jeannie Mandelker/HOU/ECT on 06/05/2001 05:27 PM ---------------------------
   

 	Enron Capital & Trade Resources Corp.  From:  Ann M Schmidt @ ENRON                           06/05/2001 05:19 PM	
		


To:	Jeannie Mandelker/HOU/ECT@ECT
cc:	 
Subject:	TVA


Jeannie,

Here are some clips from the suit that I found.  Let me know if you are thinking of something else.  Thanks, A.


MARKETPLACE
ENRON PAYS TVA $200-MILLION TO END SUIT CLAIMING MARKETER BREACHED SALES DEAL

03/05/2001
Power Markets Week
10
Copyright 2001 McGraw-Hill. Reproduction forbidden without permission.

The Tennessee Valley Authority said it received more than $200-million from Enron from a January lawsuit settlement involving Enron's alleged failure to meet the terms of an option sales contracts with TVA during summer and winter peaking periods since 1998. 
TVA revealed the gain from the settlement Feb. 27 in a quarterly financial report.
The two sides would not comment further on the deal that appears to settle the TVA lawsuit and a countersuit from Enron that had been filed in Federal District Court in Chattanooga in early 1999, nor would they discuss the terms of the settlement. 
The settlement may end a series of disputes between Enron and TVA which began in 1995 when Enron signed a 10-year options contract to supply peaking power to TVA starting in 1998. The size of the contract was never disclosed but it was believed to cover up to 1,400 MW. Enron quickly built four gas-fired combustion turbine units in the region totaling 1,850 MW and set up its own control area inside the TVA territory to give itself more flexibility to use the turbines to either supply TVA or trade for outside supplies. 
However, in 1999 problems arose when Enron said it was unable to get sufficient transmission capacity from TVA to make the control area work. And in early 2000, Enron charged that TVA was slow to respond to transmission service requests for the merchant plants in its territory, hampering the supplier's ability to market the power if TVA didn't use it. 
TVA, though, said Enron was purposely jamming its transmission system for competitive reasons. TVA also began an aggressive campaign to build its own combustion turbine projects in the region and meet peaking needs through its in-house production, using less on the Enron capacity which it said was unreliable. 
The transmission dispute led to the TVA lawsuit, in which the utility charged that Enron failed to deliver energy under the agreements during summer peak periods forcing it to buy replacement power at higher costs. It made several requests to the court for compensation for specific replacement power costs through early 2000. 
Enron and TVA officials would not say whether the original options contract between them was still in effect. or was terminated as part of the settlement. TVA also currently has several RFP's pending for new independent power supplies for both short term and long term periods.


Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	



BRIEFS
TVA WINS $200M FROM ENRON

03/05/2001
Southeast Power Report
7
(Copyright 2001 McGraw-Hill, Inc.)

The Tennessee Valley Authority has revealed that it received ``in excess of $200-million'' from Enron in January 2001 as part of a lawsuit settlement involving Enron's alleged failure to meet the terms of a power sales contract during the summers of 1998 and 1999. 
TVA said in a Feb. 27 quarterly financial report that it would use the proceeds from the settlement for debt reduction.
The two sides would not comment further on the TVA lawsuit, the settlement, or a countersuit from Enron that had been filed in Federal District Court in Chattanooga in 1999.


Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	





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