Jim - at Vicki's meeting today, there was general discussion on risks and 
issues surrounding EES new product.  Marcus prepared info below for the 
group.  There may be a meeting in next couple of days about commercial, legal 
and regulatory issues with Dave Delainey.  I drafted up these omments on 
regulatory issues - see attached. - 

Jeff - Jeremy Blachman said he'd like to hear more on the status of 
core/non-core negotiation.    I said it was part of SCE negotiation; one camp 
wants to attach past utility costs to departing customers; large customers 
want switchback option; likely there will be some compromise on these 
issues.  Could you give him latest? 

----- Forwarded by Harry Kingerski/NA/Enron on 06/11/2001 06:06 PM -----

	Marcus Dotson@EES
	06/11/2001 04:33 PM
		 
		 To: Scott Gahn/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, James M 
Wood/HOU/EES@EES, Andrew Wu/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, Greg 
Sharp/HOU/EES@EES, Mike D Smith/HOU/EES@EES, Lamar Frazier/HOU/EES@EES, Peggy 
Mahoney/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Edward Hamb/HOU/EES@EES, Marty 
Sunde/HOU/EES@EES, Jennifer Rudolph/HOU/EES@EES
		 cc: 
		 Subject: California Market Re-Entry

I've attached an internal memorandum as well as the product approval sheet 
for your review.  Please provide comments as soon as possible.
Once I receive your feedback I will resend so that everyone is on board.

Regards,
Marcus