---------------------- Forwarded by Kay Mann/Corp/Enron on 01/10/2001 10:15 
AM ---------------------------


"Boyd J. Springer" <bjspringer@JonesDay.com> on 01/10/2001 10:14:06 AM
To: kay.mann@enron.com, gregg.penman@enron.com
cc:  

Subject: Master Sales

Jerry Fox reports that Peoples has heard informally that the ICC Staff may
oppose the Master Sales proposal on the grounds that : (1) the approval of
transactions with an affiliate (without complete definition of all terms)
raises a potential for abuse; (2) staff perceives that it will be unable to
ensure that abuse does not occur; and (3) because the transactions under
the agreement are in a competitive market, the addition of enovate as one
more participant in the market with have little incremental effect on
Peoples' operation, i.e., enovate is just one more participant among the
many existing players. (Note that Peoples data responses seem to suggest
the view reflected in item 3.)  There is a status hearing at 11:00am today
which should cover only scheduling. It is unliokely that any substantive
position will be taken today. The schedule is likely to call for some
additional discovery followed by a filing date for staff's evidence abd
recommendation. Peoples will have an opportunity to file "rebuttal" to
staff's position.  I will let you know later what happens at the hearing.

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