I spoke with Wayne Duman last Thursday (9/21/00) to schedule a Enron VEPCO 
meeting for September 29, 2000 to discuss VEPCO progress with the Facility 
Study and processing/negotiating the Interconnect Agreement.  Wayne cancelled 
that meeting later that same afternoon.  I spoke with him today in regarding 
the reasons for cancellation.  

As it turns out, his group--Bulk Power Delivery--is not the group executing 
the PPA with Enron.  That group is Tim Talmadge's group--Capacity 
Acquisition.  Once Wayne tried to schedule the 9/29 meeting, he was told not 
to talk with Enron.  Further investigation on his part uncovered some 
internal VEPCO issues.  He is calling an internal meeting with Capacity 
Acquisition, Bulk Power Delivery, Bulk Power Operations and the Transmission 
Group to discuss these issues and establish a consistent "game plan" for 
going forward.

The Transmission Group is scheduled to finish the Facility Study on Monday, 
October 2, 2000.  The study will include switchyard needs, network needs, 
construction costs, and construction schedule.  He knows we have a June 2001 
commercial operation date, and he knows that Capacity Acquisition is 
responsible for the associated construction costs.  He is nervous that the 
Facility Study will forecast construction schedules that do not coincide with 
the commercial operation date.  He further indicated that acquisition of 
necessary equipment--breakers, transformers, etc. specified by the Facility 
Study--could be a significant challenge for VEPCO.  He understands that this 
is his challenge, not ours.  He also noted that VEPCO is very sensitive and 
careful to operate within FERC guidelines regarding interconnection and the 
various time frames--this includes not making any special considerations to 
the Capacity Acquisition guys since they are in the same company.

Wayne Duman is very involved in VEPCO's effort to develop an Interconnection 
Agreement consistent with FERC.  They are within days of completing this 
task--it is in legal review right now.  The current  version of the 
Interconnection Agreement is a subsequent generation of the document we 
reviewed at the beginning of August.  Wayne understands that the PPA which 
VEPCO and Enron are negotiating is contardictory to the "boiler plate" 
Interconnection Agreement and needs to be changed to reflect the PPA defined 
scopes for Enron and VEPCO.  He indicated that part of VEPCO's "to do list" 
to get ready to meet with Enron includes modification of the latest 
generation of the VEPCO Interconnection Agreement to be consistent with the 
Enron PPA.

He is optimistic that we would be able to meet late next week to get the 
Interconnect Agreement process underway.  He assured me that he would keep 
Enron informed of the progress.

In summary, VEPCO is doing the following:
getting all stakeholders on the same page,
finishing the Facility Study, and
getting their Interconnection Agreement to agree with the PPA.

Reagan