Rick, 
Barbara and Kerry are traveling to Missouri tommorrow to negotiate with 
Ameren.  This bill which will be an industrial buy-through only (due to 
complications with Constitutional Amendments in Missouri involving a 
requirement for a referendum for any tax law changes).   The bill applies to 
industrials greater than 1 MW in Ameren and 2 MW everywhere else.  In 
speaking to EES, they want us to try and get the threshold reduced to 500kw 
to 1mw.  ENA wants load following in order to sell blocks of power to large 
industrials.  In addition, there are a host of other issues, including, 
insufficient regulatory review for shifting generation into a genco, no code 
of conduct for that genco and Illinois-styled stranded cost recovery.  Kerry 
and Barbara have a tough assignment to get anything here.  We thought it 
would be best to see how these negotiations go before formulating what kind 
of message we would like Ken Lay to deliver if he is willing.  To make 
matters worse, the industrial group has already caved on the bill.  Kerry and 
Barbara, I believe are also meeting with the consumer advocates office and 
the Commission staff who have not signed off on the bill.  We should know 
more in the next day or two.  Nothing will happen at the legislature until 
next week.
Janine  



	Richard Shapiro@EES
	03/17/2001 03:11 PM
		
		 To: Laurie Knight/NA/Enron
		 cc: Janine Migden/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James D 
Steffes/NA/Enron@Enron
		 Subject: Re: Missouri Legislation and Request for Assistance from Ken Lay

Janine - what is status of this? 



Laurie Knight
03/15/2001 10:56 AM
To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron
cc: Janine Migden/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James D 
Steffes/NA/Enron@Enron 

Subject: Missouri Legislation and Request for Assistance from Ken Lay


FROM: BARBARA HUETER
 KERRY STROUP


The Missouri Senate Commerce and Environment Committee is expected to pass 
Sub.SB455 when it returns from spring break during the week of March 26th or 
the following week.  Senate President Pro Tem Peter Kinder introduced the 
bill for AmerenUE.  AmerenUE is controlling the process. We must go through 
Ameren for changes - and they are not very willing to concede.  

We would like to arrange for Ken Lay to call Senator Kinder to express 
Enron's concerns about the bill (market structure, lack of benefits for 
customers).  Our local lobbyist, Roy Cagle, could let Senator Kinder know 
that Ken Lay would like to speak with him and arrange an appropriate time for 
the call to take place.  It would be most helpful if the call could take 
place by March 26th.

Senator Kinder graduated from the U of Missouri-Columbia in the 1970's.  He 
was a member of the same fraternity as Ken Lay.  Peter also met Ken at the 
Republican Convention last summer -- and seemed very excited about it.  Also, 
being a Republican, Peter seems very impressed by Ken Lay's relationship with 
the President.  We think this is a good opportunity for Enron to gain some 
leverage over Ameren via Senator Kinder.

Kerry and I are analyzing the various drafts and suggestions for changes to 
the bill.  We are working with numerous other stakeholders  -- so the actual 
contents of the deal/bill are in constant flux.  We would prepare a briefing 
for Mr. Lay but would wish to do so closer to the time of the call so that 
Mr. Lay will have the  most up-to-date information.

In a nutshell -- the bill allows a utility to spin off generation assets to a 
genco at historic net book value.  The utility would then sign a PPA with the 
genco to provide for the full requirements of its captive customers as well 
as eligible customers who have not chosen an alternative supplier.  Customers 
over 1MW in Ameren's service territory and those over 2MW in other service 
territories (munis and coops excluded) would be able to arrange buy-through 
type arrangements with registered suppliers. The bill does not contain 
adequate transmission access language, a code of conduct, appropriate 
unbundling language nor does it address a host of other market structure 
issues that are key to developing robust competition.