---------------------- Forwarded by Kayne Coulter/HOU/ECT on 11/30/2000 04:13 
PM ---------------------------


Patrick Hanse
11/30/2000 10:03 AM
To: Terri Clynes/HOU/ECT@ECT, Dave Mangskau/Corp/Enron@ENRON, Mitch 
Robinson/Corp/Enron@Enron, Kayne Coulter/HOU/ECT@ECT, Christi L 
Nicolay/HOU/ECT@ECT
cc: Matt Lorenz/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT 
Subject: Re: Notice of Pending Changes (effective 12/18/2000) to MAPP's Loss 
Repayment Procedure  

I called MAPP to get a better understanding of the pending Dec. 18th LRP 
changes as explained in detail below.
Currently the "source" generator is responsible for the Losses.  The new 
policy states that the Scheduling customer is now responsible for Losses.  
MAPP is implementing this change as a requirement under their tariff.  
Changes to software and systems has delayed this change from being 
implemented any earlier.
What it means to Enron as a Schedule F customer:
 1)  Enron (or any Schedule F customer) is responsible for  losses based on a 
yet to be published Loss Matrix that MAPP will provide on it web page.  The 
loss  calculation matrix and methodolgy will not change, just the party 
responsible for providing the losses.  When scheduling energy, Enron must  
either schedule physical losses or buy losses from a designated Source 
Scheduling participant (SSP).  The SSP will then be responsible for 
disbursing the losses to each designated CA a week later.
The identity of the SSP will be the Source of power (if a MAPP member), or 
the POR on your Schedule F (If Source is outside MAPP).




Terri Clynes
11/20/2000 10:40 AM
To: Matt Lorenz/HOU/ECT@ECT, Patrick Hanse/HOU/ECT@ECT
cc:  
Subject: Notice of Pending Changes (effective 12/18/2000) to MAPP's Loss 
Repayment Procedure


---------------------- Forwarded by Terri Clynes/HOU/ECT on 11/20/2000 10:40 
AM ---------------------------


"Dan S. Fredrickson" <DS.Fredrickson@mapp.org>@mapp.org on 11/17/2000 
05:21:59 PM
Sent by: owner-pemc@mapp.org
To: <rtc@mapp.org>, <pemc@mapp.org>, <mrc@mapp.org>, <rin@mapp.org>
cc:  
Subject: Notice of Pending Changes (effective 12/18/2000) to MAPP's Loss 
Repayment Procedure


Notice of new MAPP Loss Repayment Policies and Procedures

At the direction of the Regional Transmission Committee of MAPP, new Loss
Repayment Policies and Procedures will be implemented on December 18, 2000.
These changes make the transmission customer, as identified on the OASIS
reservation, responsible for paying energy losses on MAPP Schedule F
transmission service.  Previously, the MAPP Source entity has been
responsible for paying these losses.  These changes do not modify the
application of MAPP's Loss Repayment Procedure (LRP) to MAPP Member Open
Access Transmission Tariff (OATT) customers.  Changes to the administration
of Schedule F loss repayment include:
o The Schedule F transmission customer will now be responsible for the LRP
losses on their energy schedules.
o Payment of third party impacts due to "through flowing" Schedule F
transactions (where the Source and Sink are both outside MAPP) will be
included in the LRP.
o To facilitate the payment of third party losses, the Customer will make
arrangements with the Source Scheduling Participant (SSP), as defined on the
transmission reservation, to pay for energy transaction losses at the onset
of a schedule.
o The SSP will bank the losses for repayment of third party losses, one week
later, to the day. The repayment is done, as it is today, according to a
schedule sent out by the MAPP Center.
For additional information please see the business practices section of
MAPP's Schedule F OASIS:
http://mapp.oasis.mapp.org/documents/MAPP/practices.html

Questions may be e-mailed to Tom White at the MAPP Center:
ts.white@mapp.org

Answers to frequently asked questions will be posted at the URL given above.

A copy of the revised section five of the policies and procedures document
is attached.

Dan Fredrickson
MAPP Transmission Operations




 - lrppolicy20001218.doc