The attached letter is being delivered this morning to the FERC 
commissioners.  Since the letter concerns a matter currently pending before 
the commission it will also be served on the parties.  We plan to talk to the 
press about it as well.  A number of other companies and organizations are 
also submitting letters and we have helped prepare an EPSA filing which 
focusses specifically on California.  Our best information at this point is 
that the FERC staff report regarding California is generally accurate, and 
therefore, favorable.  While it will mention periodic exercises of market 
power, it is expected to lay blame for California's woes at the feet of 
California's own decisions about market structure.  It is further expected 
that the report will not provide a basis for ordering refunds.  On the other 
hand, the Commission's order (to be considered tomorrow along with the 
staff's report) is expected to at least put refunds on the table for comment 
and to discuss, and perhaps implement, further price caps.  This is just our 
best guess at this point.  the Commission has put special emphasis on putting 
the report and order under wraps until wednesday.
----- Forwarded by Steven J Kean/NA/Enron on 10/31/2000 07:24 AM -----

	Rosalee Fleming
	10/30/2000 06:00 PM
		 
		 To: Joe Hartsoe/Corp/Enron@ENRON, dwatkiss@bracepatt.com
		 cc: Steven J Kean/NA/Enron@Enron
		 Subject: Hoecker letter