I appreciate the extra work.  Thanks.   Mark



	Greg Johnston
	11/02/2000 04:43 PM
		 
		 To: William S Bradford/HOU/ECT@ECT, Aleck Dadson/TOR/ECT@ECT, Derek 
Davies/CAL/ECT@ECT, Paul Devries/TOR/ECT@ECT, Chris Gaffney/TOR/ECT@ECT, Bill 
Greenizan/CAL/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT, Robert 
Hemstock/CAL/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Mark Powell/CAL/ECT@ECT, 
Elizabeth Sager/HOU/ECT@ECT, Dianne Seib/CAL/ECT@ECT, Laura E 
Scott/CAL/ECT@ECT, Andre Templeman/CAL/ECT@ECT, Garrett Tripp/TOR/ECT@ECT, 
John Zufferli/CAL/ECT@ECT
		 cc: Rob Milnthorp/CAL/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Peter 
Keohane/CAL/ECT@ECT
		 Subject: Canadian Form of Physical Power Master

Further to the landslide of e-mails I have sent relating to this agreement, I 
hope that this will be the last as far as asking for input.  Over the last 
few days, the form of the paper pursuant to which Enron Canada will trade 
physical power in Canada has been reviewed and (I think) finalized by legal 
in Calgary and Houston and the commercial people in Calgary.  We have 
determined that it is in the best interest of Enron to jointly promote the 
Edison Electric Institute (EEI) form of master which, as I described in my 
e-mail of yesterday, consists of a standardized base contract with an 
amending section, much like the ISDA form of financial master.  However, as 
the current form of the EEI master is a US document, containing many US 
specific provisions that have no application in Canada, commercially it has 
been identified as a concern that, with respect to counterparties that are 
not sophisticated trading companies, selling a US document with a Canadian 
addendum will be difficult if not impossible.

Therefore, we are going to proceed to finalize the form of "industrial 
master" that I have drafted and sent out numerous times for review, a copy of 
which I enclose in both a clean and black-lined version (black-lined to the 
most recent draft distributed to you) in what I now believe is, in fact, 
final form.  Our commercial people can use this form, together with the form 
of GTC I distributed to most of you earlier today, to market power in Alberta 
to counterparties who will not accept the EEI form.

We will immediately begin the process of supporting the use of the EEI form 
in Canada but will propose that a Canadian form of base contract be agreed to 
and implemented, thereby eliminating the problem of using a US document as 
the base contract for Canadian transactions.  I will begin the process of 
trying to create a first draft of this base contract which, other than with 
respect to removing US references and incorporating specific Canadian 
principles, will be identical to the US form.  I will also commence the 
process of preparing what Enron believes the form of addendum to this 
Canadian base contract should be.

Sorry for the lengthy e-mail, but I wanted to ensure that everyone was 
completely up-to-date with the status and process.  I believe that this 
solution will address everyone's concerns without jeopardizing commercial 
transactions in Alberta.

Thanks

Greg