Because UBSW Energy will be dedicating a stream of net revenues to the Enron Estate, which still owns the FERC-jurisdictional utility PGE, it appears that the FERC attornies are telling us, out of an abundance of caution,  that we will need to treat PGE as an affiliate and PGE will need to treat UBSW Energy as an affilate.  As far as I know the the proposed affiliate restrictions are similar to those imposed on EPMI and PGE when EPMI got its market based rate certificate.  Recall that recently PGE was denied access to Enron Online and I assume that the same restrictions would continue to apply to PGE and UBSW Energy.

Please review the draft code of conduct, which will be a part of our market based rate (MBR) application, and let me know your concerns.  Now is the time to raise issues as we have not yet filed our MBR application.

Of course, these restrictions will fall away once PGE is sold. 	

Alan Comnes
DRAFT DRAFT DRAFT 
.SUPPLEMENT NO. 1 TO RATE SCHEDULE NO. 1

STATEMENT OF POLICY
AND CODE OF CONDUCT
WITH RESPECT TO THE RELATIONSHIP BETWEEN
UBS AG
AND
PORTLAND GENERAL ELECTRIC COMPANY

Marketing of Power

1.	To the maximum extent practical, the employees of UBS AG and UBS Warburg Energy LLC (jointly "UBS Companies") will operate separately from the employees of Portland General Electric Company ("PGE").

2.	All market information shared between PGE and UBS Companies will be disclosed simultaneously to the public.  This includes all market information, including but not limited to, any communication concerning power or transmission business, present or future, positive or negative, concrete or potential.  Shared employees in a support role are not bound by this provision, but they may not serve as an improper conduit of information to non-support personnel.

3.	Sales of any non-power goods or services by PGE, including sales made through its affiliated EWGs or QFs, to UBS will be at the higher of cost or market price.

4.	Sales of any non-power goods or services by UBS to PGE will not be at a price above market.

Brokering of Power

To the extent UBS Companies seeks to broker power for PGE:

5.	UBS Companies will offer PGE's power first.

6.	The arrangement between UBS Companies and PGE will be non-exclusive.

7.	UBS Companies will not accept any fees in conjunction with any brokering services they performs for PGE.