----- Forwarded by Steven J Kean/NA/Enron on 09/26/2000 04:20 PM -----

	"Duncan Kincheloe" <dkincheloe@mpua.org>
	09/26/2000 10:22 AM
		 
		 To: <skean@enron.com>
		 cc: 
		 Subject: Fw: Tagging issue at NERC Security Subcommittee tomorrow



Steve,
?
I sent the below to you this morning at an apparently outdated  email 
address.? Your secretary was kind enough to update me so I'm  forwarding it 
again.
?
Duncan Kincheloe
General Manager and CEO
Missouri Public Utility  Alliance
573-445-3279
Fax 573-445-0680
----- Original Message -----  
From: Duncan Kincheloe  
To: Steven Kean 
Sent: Tuesday, September 26, 2000 10:01 AM
Subject: Tagging issue at NERC Security Subcommittee  tomorrow

Steve,

I haven't been in touch since the DOE  Reliability Task Force and hope this 
email address through Elizabeth is still  the way to reach you.? 
Incidentally, I was with Sue Tierney at a NARUC  conference yesterday and 
we've started a new pool to wager when Congress will  get this issue dealt 
with. Want in?

Perhaps you remember that while we  were serving on the Task Force I moved to 
EPRI to direct their government  relations.? Last year I moved back to 
Missouri to run the municipals' state  joint action agency, which is why I'm 
writing.? Part of our activity is  operating a 19 city power pool (MoPEP) 
that has a three year supply contract of  up to 40 mWh/hr with Enron.? We've 
had some difficulties with delivery  since a change in tagging was made in 
June.
?
The issue and a  proposed solution is explained in the attached three page 
"bullet statement"  that we've just submitted to the new NERC Security 
Subcommittee that meets  tomorrow.? Based on his discussions with NERC staff, 
with a Mike Curry with  Enron and other affected utilities, my chief 
operating officer for MoPEP is  optimistic about prospects for this 
resolution.? I would like to make sure  of Enron's support.? I'm told that 
Dick Ingersoll will be at the  subcommittee meeting for Enron, and I know 
Dick from SPP meetings when I was on  the Missouri Commission but don't have 
contact information on him now.? I'd  be very grateful if you could pass 
along a nod of benign interest in  this.

We'd greatly appreciate Enron's support for the  proposed resolution of the 
tagging issue at the NERC Subcommittee tomorrow,  mainly because it should 
avoid what might otherwise be a messy contract dispute,  at FERC or 
elsewhere, between our organizations.? Without getting into the  details, my 
understanding of the issue under the energy purchase agreement has  to do 
with whether the change in NERC tagging that was required on June 1 (the  
date when MoPEP started taking certain control area services from Western  
Resources) affects Enron's obligation under the agreement to deliver energy 
to  the Associated Electric Cooperative transmission system.? MoPEP's view 
is  that Enron's obligations are unaffected, but some at Enron apparently 
have had a  different view.? Our belief is that the proposal that will be 
presented to  the Security Subcommittee will resolve the tagging matter such 
that both Enron  and MoPEP would regard any potential dispute on this issue 
as moot.

Sorry  for such short notice, but this resolution and taking it to the 
subcommittee  came out of discussions in Atlanta Friday.

Thanks for your consideration,  Steve.? Hope all is well with you.

Duncan Kincheloe
General  Manager and CEO
Missouri Public Utility Alliance
573-445-3279
Fax  573-445-0680
 - MoPEP Tagging.doc