From Jane Wilson.
Rubena

---------------------- Forwarded by Rubena Buerger/ENRON_DEVELOPMENT on 
12/13/99 08:29 AM ---------------------------


Jane Wilson
12/12/99 05:54 AM
To: Rubena Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:  
Subject: Argentina Retail Unbundling

Could you forward to Steve Kean and Rick Shapiro.  Doing it remotely gets 
them returned.
---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on 12/12/99 
05:54 AM ---------------------------


Jane Wilson
12/12/99 05:42 AM
To: Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Guillermo Canovas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike G 
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Terence H 
Thorn/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean@EES, Robert 
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Donna 
Bily/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard Shapiro@EES 

Subject: Argentina Retail Unbundling

I've been thinking about Michael Guerreiro's desire to push retail 
unbundling, particularly for gas, in Argentina.  As we know, Michael had 
experience in the Atlanta area on retail unbundling prior to joining Enron; 
therefore, he knows what he is after and asserts (correctly) that the 
attainment of retail unbndling is critical for his success as new head of the 
Argentina trading office -- without it, Enron cannot be successful.   It is 
important for us to accommodate Michael's sense of urgency; however, to 
blindly act, make filings and lobby without having thought through the issues 
would not be in Enron's best interest.  We have experience in regulatory in 
Argentina and know that action without forethought is not a wise course of 
action.

As an initial thought, I would suggest that the US retail unbundling 
experience is not 100% transferrable to Argentina and that Enron should 
carefully construct a phased approach that is adapted to the Argentina 
political and regulatory realities.  To do this, I suggest the following:

Schedule 1-2 days in January in Houston for a strategy session.  I suggest 
Houston over Buenos Aires, only because of the inclusion of so many of the 
people who are not Southern Cone related.  We could try for Southern Cone if 
that is your preference, but I am concerned about the likelihood of getting 
all the below-named individuals to travel internationally.

 A. The first day would be the construction of the regulatory overview of 
retail unbundling, the final product being a matrix of what the process 
entails and what the major issues are and generally how these issues are 
being managed in the United States.  I would involve the following people in 
this session:

  Mike Smith
  Guillermo Canovas
  Jose Bestard
  Jane Wilson
  Robert Neustaedter
  Harry Kingerski
  Pat Keene
  Michael Guerreiro?
  Roberto Pensotti?

Pat Keene and Robert Neustaedter to take the lead on constructing a 
presentation.  Harry is a Sr. Director for Steve Kean in detailed rates and 
tariffs issues.  I hired him as my director at EES.  He is a regulatory whiz, 
although his emphasis is power.  I also hired Pat Keene who is a regulatory 
gas distribution guru from New Mexico.  He now works for Harry in Steve 
Kean's group.  [Jose, to the end of the construction of the working group, 
perhaps Pat Keene could be permanent with Harry brought in on a consultative 
basis periodically.]

 B. Day two would be a sharing of experience in Georgia (Atlanta), New York, 
and the UK, followed by the construction of actual Argentine strategy with a 
timeline.  The point here would be to learn how the facts of the specific 
fact situation in Georgia, New York, UK and FERC affected the outcomes of the 
general retail unbundling issues.  This will make it easier to anticipate 
what will happen in Argentina.  The guests would be:

  Kathleen Magruder -- Atlanta
  Lisa Polk -- EES, worked on the details in Atlanta
  Steve Montovano -- Brooklyn Union
  Joe Hartsoe -- Washington FERC VP 
  Someone (Philip Davies or Doug Wood -- cannot remember which is gas?) from 
Mark Schroeder's group.
  The attendees on Day One

This is a tall order for one day; perhaps we could prepare well in advance on 
Day One to cut time and start Day Two in the afternoon of Day One?  

[Jose, the UK person should be on the working group.  Perhaps you should 
think about two working groups, one  Argentina, one Brazil, with alternates 
for gas and electric?]

My suggestion is that Houston Regulatory would pull together this strategy 
session for Argentina and assist with drafting the actual initial filings or 
comments on an input basis.  The Southern Cone group would then take over to 
get it done, you consulting the working group on an ongoing basis as things 
develop.  

I'm going to India for a week Monday.  However, I download on a regular 
basis; but, because of time differences, my response will be a day later than 
you think it should be, assuming I have no trouble with e:mail.