---------------------- Forwarded by Shelley Corman/ET&S/Enron on 04/28/2000 
02:31 PM ---------------------------


Shelley Corman
04/28/2000 02:31 PM
To: Colleen Sullivan/HOU/ECT@ECT
cc: Rebecca W Cantrell/HOU/ECT@ECT, Leslie Lawner/HOU/EES@EES@ECT, 
shak@ev1.net@ECT 

Subject: Re: FERC Presentation  


It is my understanding that Enron Gov't Affaits would like us to use the FERC 
visits to make the case that the wholesale gas markets are very liquid and 
competitive, while wholesale electric markets are not -- largely because the 
FERC has not fully unbundled electric transmission.    FERC should be 
spending 90% of its time fixing fundamental structural rules in the electric 
side and 10% refining rules on the gas side.    That is not to say that there 
aren't important revisions that the FERC should take up on the gas side.  
These fixes, however, can be characterized as refinements, as contrasted with 
the fundamental changes we seek on the electric side.  Moreover, these 
changes may largely be addressed by the recent Order 637.  

With respect to E-commerce, I believe that the Enron message is that the FERC 
should  fix the structural problems and get out of the way - e-commerce will 
come and in most cases is already here.

Dave Forster of EnronOnLine will be making a presentation that focuses on how 
much more liquid gas is than power, as evidenced by tight spreads.  In 
previous presentations to FERC folks, Steve Kean has made the point that 
while the rules are far from perfect on the gas side (i.e. tariffs are still 
not standardized), the market works because FERC got the basic structural 
rules right (i.e. 636 unbundling). 

I think all your areas of improvement are appropriate (of course I don't 
necessarily like them as a pipeliner), but I think they fit the overall Enron 
message if presented as a list of refinements.   I plan to speak to them 
about competitive pressures our pipeline face,  our current web sites, plans 
for Order 637 postings and intraday capacity release.  

Here are my  thoughts on getting your points across within the overall 
theme.  I'm also sending out a separate email outline of the day.