FYI.  The report posted on the website fails to include the report's 
transmittal letter.  I just found that letter in the mail.  The letter 
explains that the report's analysis DOES NOT include "the events" of May, 
June and July, which the Compliance unit is currently studying.  It will 
release the results of that study in the Fall.
---------------------- Forwarded by Jeff Dasovich/SFO/EES on 08/07/2000 05:19 
PM ---------------------------


Jeff Dasovich on 08/07/2000 05:14:32 PM
To: James D Steffes/HOU/EES@EES, Paul Kaufman@EES, Mona L 
Petrochko/SFO/EES@EES, Sandra McCubbin/SFO/EES@EES, Dave 
Parquet@ENRON_DEVELOPMENT, Tim Belden@ECT, Robert Badeer@ECT, Dennis 
Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, snovosel@enron.com, Joe 
Hartsoe/Corp/Enron@Enron, Christi L Nicolay@ECT, Mary Hain@ENRON_DEVELOPMENT, 
Susan J Mara/SFO/EES@EES, Bruno Gaillard/SFO/EES@EES, Richard 
Shapiro/HOU/EES@EES, Karen Denne/Corp/Enron@Enron, Peggy Mahoney/HOU/EES@EES
cc:  
Subject: CalPX Market Compliance Unit Submits its 2nd Annual Report to FERC

Submitted to FERC on 7.31.00.  Key findings:

"The markets work."
"...virtually all price increases in the past two years can be explained by 
underlying known factors such as weather, natural gas prices, and forecasts."
Almost all of the price increase during year 2 is explained by market 
fundamentals...The unexplained variance in price is small and appears to have 
contributed nothing to the trend."
"...a Compliance mean reversion model indicates that prices typically return 
to mean price levels in less than two days."
"...the price increases...show no indications of deliberate attempts to 
manipulate prices...."


If you'd like a copy, you can find it at the following address:    
http://www.calpx.com/regulatory/marketcompliance/index_annualreport.html