Mary,  I looked into your idea regarding using an index price approach along 
the lines of the tariff that was approved for EPMI's market based sales to 
PGE in Docket No. ER99-364-000.  I agree that the current situation is quite 
similar to that.  thus, since the current proposal is similar to one that has 
already been accepted, the matter is less controversial than I originally 
thought and I do not think that this would entail much additional research.  
Nor do I think that we necessarily need to pre-screen this with FERC since 
that would delay the filing.  I would therefore revise my RCR projection to 
$5,000 to prepare the filing and suggest that we simply file it.  (I would 
let you know if I think it is more complicated once I dig in.)

FYI, I ran this through Dan, and he agrees with the foregoing.  As before, 
however, we cannot get FERC approval within the time frame contemplated by 
the RFP.  I agree with you that the conservative and preferable (from a 
legal/regulatory perspective) way to proceed is to make your proposal to PGE 
subject to FERC approval.  Since time is of the essence, let me know when to 
begin, and we'll jump on it right away.  Ron

>>> <Mary.Hain@enron.com> 03/13/01 12:48PM >>>
Portland General Electric (PGE) has a request for proposals (RFP) that EPMI
wants to submit an offer on.  PGE is essentially seeking a fixed price for
50-200 MW 'round the clock for five years starting in '02 at Portland's
system, the Mid-C, or COB South to North.  Offers are due by March 28 and
PGE has until April 5, 2001 to accept .

I have told Mike that any deal with PGE has to be approved by FERC under
the terms of EPMI's market based rate tariff.  I have also told him that
EPMI could either make the offer subject to FERC approval or take the
regulatory risk that FERC would in some way change the benefits of any
contract in PGE's favor.  I would recommend the former.  Ron - would you
tell me how much you would charge to draft a FERC filing, for my review,
in the event PGE accepts our offer?  Jim - I intend to submit an RCR for
this FERC filing.  Is that okay?