I had a good "clear the air" talk with Art yesterday.  We came up with a 
couple things that will improve the process. 

1.  Citizens needs to subscribe to EOL so that Art can execute trades without 
calling me or anyone else at Enron.  This will improve execution.  Sean, 
please make this a priority.  Call the 800 number and make it happen.  Call 
me if you need help.

2.      Kim Ward will be the point person for gettting NYMEX and Basis 
quotes.  Kim's number is 713/853-0685.  I will be helping Kim, but she is in 
a better position to execute trades as she is on the desk.

3.  Citizens should consider getting swap contracts in place with 
counterparties other than Enron (and Enron as well) so that you can do fixed 
price deals with others in the event that you can obtain more attractive 
pricing than what Enron is offering at any point in time.

Please let me know if you want further follow-up re: your e-mail below.  
Also, please push forward on the 2 contracts (gas contract amendedment and 
power contract master).

Thanks

Chris 


   
	Enron Capital & Trade Resources Corp.
	
	From:  "Sean Breen" <sbreen@czn.com>                           12/28/2000 
03:21 PM
	

To: "Chris Foster" <cfoster@enron.com>
cc:  
Subject: Fw: NYMEX fixed prices obtained from Enron



Chris:
Would you kindly call me next week (Tues/Weds is  best) to discuss.? Thanks
----- Original Message -----  
From: Art Gelber  
To: Sean  Breen 
Sent: Thursday, December 28, 2000 4:10 PM
Subject: NYMEX fixed prices obtained from Enron

Sean,
?
As we discussed on  the telephone today, I have a concern surrounding the 
pricing Enron gave  us?while establishing NYMEX fixed pricing for the months 
of April 2001, May  2001, June 2001, July 2001 and August 2001.
?
Today, we first  contacted Enron to obtain market quotes at 10:58 am cst.? In 
every month we  requested a quote on NYMEX, Enron gave a quote that was no 
less than two cents  higher than the offer on the floor of the NYMEX.? Gelber 
questioned the  quotes as being outside the market.? Gelber chose to end the 
telephone call  after questioning the quotes.? At 11:08 am, Gelber called 
Enron  again.? The election was made to proceed with execution of the 
necessary  positions.? For the months of April, May, June, and August we 
received  prices that were at the offer side of the NYMEX bid/offer spread.? 
However,  on the month of July the price received was not only outside of the 
then current  NYMEX bid/offer range but was indeed higher than the NYMEX high 
for the day on  the July contract.? Specifically, the Citizen's Arizona Gas 
price received  for July 2001 from Enron is $5.340, the high for the day on 
NYMEX was  $5.290.
?
I do not currently  feel comfortable with Enron's pricing methods.? My 
assessment after today's  transactions is only partially favorable.? It is my 
understanding that  Citizen's compensates Enron in other parts of your 
business relationship and  their should be no need for them to mark prices up 
when executing either NYMEX,  basis, or a combination of the two.
?
Citizen's may want  to consider pursuing alternative mechanism's?for securing 
fixed pricing via  other accessible markets.
?
Sincerely,
?
Art Gelber
Gelber & Associates
agelber@gelbercorp.com
713/655-7000
?