Steve:  the ACE language has been modified somewhat from the original form 
which you have indeed seen before but not enough modification so as to 
correspond to FERC Order 2000.  The question being put is what amendments 
would be necessary to the ACE language to satisfy Enron's needs given the 
reluctance of ACE to either accept 1.) generic language so the Order 
prevails, nor to accept 2.) exact specific language to detail precisely Order 
2000.  Are there items in 2000 we could give up in the legislative language?  
Otherwise, ACE believes due to their support from Commissioner Hubert and the 
general political weakness of FERC, that their existing language has the 
votes in Committee to in effect overturn portions of Order 2000.  ACE's 
willingness to accept any changes to their language has resulted from our 
overall effective strategy.  However, the question now is what precisely do 
we ask for and what is the order of importance of our requests?  Many thanks.




Steven J Kean@EES
05/31/2000 09:22 AM
To: Cynthia Sandherr/Corp/Enron@ENRON
cc:  

Subject: Re: MidAmerican RTO drafting re: Alliance Language  

I replied to this before, I think.  there was amemo like this one that 
Watkiss replied to.  Is this new language?


Cynthia Sandherr@ENRON
05/30/2000 03:03 PM


To: dwatkiss@bracepatt.com
cc: awenner@velaw.com, Steven J Kean/HOU/EES@EES, Richard 
Shapiro/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, Sarah 
Novosel/Corp/Enron@ENRON, Joe Hillings/Corp/Enron@ENRON 
Subject: MidAmerican RTO drafting re: Alliance Language

The message below is from the MidAmerican group:  
I have attached the ACE Group's transmission language.  At the meeting
yesterday, it became clear that the very generic language we have discussed
was not going to work for enough folks.  Cynthia Sandherr suggested an
alternative approach that would be more detailed, but would track Order No.
2000 as closely as possible.

Cynthia Stinger volunteered that Randy Davis had put much of the standards
section of Order 2000 in legislative language, but also added a number of
issues that are not in 2000.  Obviously, some of these provisions (and
possibly some that are in Order 2000) will be unacceptable to some in the
group.  When you have an opportunity, please take a look at this and give me
your best objective judgment on what here is acceptable and what is not for
your organization.

Obviously, we would have to add at the beginning the language that was in
the original proposed draft language on RTOs re: 1) "adopt rules requiring
the formation of regional transmission organizations and prescribing the
minimum characteristics and functions of such organizations," and 2) "order
a transmitting utility operating within a region to participate in a
regional transmission organization to remedy undue discrimination or
anti-competitive effects" that is already agreed to.

I will be leaving town at about 3:00 PM tomorrow, but would like to get
ideas on schedules for activity.  Please try to forward to me your first
impressions on the RTO language before then.  I will forward comments to
Betsy and Brent Gale in my company to see if we can have a draft ready when
I return on Thursday morning.

I would like to hold another meeting of the group on Friday morning of next
week, or alternatively, we could meet over lunch on Friday.  Please let me
know of any preferences in that regard.

Second, I would like to hold a joint meeting with the other stakeholder
group on Monday at 11:00.  I will confirm this next week.  The purpose of
the meeting will be to go over legislative drafts on market power and RTOs
(hopefully they will be ready).

Tuesday, June 6th, I think we should devote the full day to lobbying Senate
offices (Thursday and Friday of the previous week are possibilities also).

Thursday, June 8th, I will set up meetings with key House offices.

I know everyone will not be able to do all of these, but as always if you
can do a meeting, it's a great help.

Please get back to me with comments on the RTO language as soon as possible.

Thanks,

Tom



-----Original Message-----
From: cstinger@gpu.com [mailto:cstinger@gpu.com]
Sent: Thursday, May 25, 2000 1:35 PM
To: Bonner, Thomas D
Cc: jcohen@gpu.com; jloveng@gpu.com; rdavis@sdsatty.com
Subject: Alliance Language




Tom,

Attached is the ACE language on RTOs.

Cynthia



(See attached file: Trans201.doc)


 - Trans201.doc