---------------------- Forwarded by Ginger Dernehl/NA/Enron on 08/17/2000 
02:35 PM ---------------------------


Bruno Gaillard@EES
08/17/2000 01:55 PM
To: SF Office, Marcie Milner/Corp/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Mary 
Hain/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Chris H 
Foster/HOU/ECT@ECT, Frank W Vickers/HOU/ECT@ECT, Samuel Wehn/HOU/ECT@ECT, 
David Parquet/SF/ECT@ECT, Greg Wolfe/HOU/ECT@ECT, Ginger 
Dernehl/NA/Enron@Enron
cc:  

Subject: 350$ Cal PX bid cap resolution  - passed 8/16 subject to FERC 
approval

Attached below the article is the Resolution
---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/17/2000 
11:48 AM ---------------------------


<E._Jesus_Arredondo@calpx.com> on 08/17/2000 11:41:33 AM
To: bgaillar@enron.com
cc:  
Subject: 2nd try...PX bid cap resolution RESOLUTION




Please keep in mind, until the FERC responds, there will be no changes to our
markets.


               (See attached file: resolution bid caps august 16.doc)



Also FYI:

Dow Jones Newswires

CalPX To Ask FERC To Reduce Day-of, Day-Ahead Price Cap:
Board Caves In To Political Pressure

By Jason Leopold

LOS ANGELES--The California Power Exchange, the spot market where electricity 
is
bought and sold in the state, approved a measure Wednesday seeking federal
authority to impose a
$350 per megawatt-hour bid cap on wholesale power prices in its day-of and
day-ahead markets.

Members of the CalPX's board of governors admitted that the measure was 
approved
 as a result of
intense political pressure being placed on the board by state lawmakers and 
Gov.
 Gray Davis.

"Not approving this is political suicide," said CalPX board member Carolyn
Keherein, who also serves
on the board of governors at the California Independent System Operator. 
"We're
not changing
anything but the perception in the market."

The CalPX current cap on wholesale power prices in the day-of and day-ahead
market is set at $2,500,
but that is only a technical limitation of their computer system and has had 
no
effect on power prices.

State lawmakers believe a price cap would stabilize high power prices being
passed on to retail
customers, most notably consumers in San Diego. Ratepayers there are paying
market-based rates for
electricity and have seen their utility bills nearly triple in the past two
months.

The price cap would need to be approved by the Federal Energy Regulatory
Commission before it goes
into effect at the Power Exchange. FERC has not indicated whether it would OK
the measure, but said
it would investigate it.



If you have any questions, please feel free to call me directly.

-eja

E. Jesus Arredondo
Manager, Corporate Communications
California Power Exchange
Tel.  626.537.3155



 - resolution bid caps august 16.doc