Thanks Terri, some quick comments on the term sheet, and suggestions on due diligence items your team should review while we are waiting to hear a response from the customer.  FYI - Heather Kroll has been working through many of these issues as well on some Southeast transactions and may be a good source of information.

Comments on term sheet
ISO/RTO Effect, small typo:  EPMI shall have the right, but [not] the obligation
Conditions [Precedent]:  Forming a control area is news to me, how did we come to this conclusion?  I understand it to be very expensive.

Due Diligence Items:
Will IP sell EPMI schedules 3-6 of their current OATT separate from the other cost components of this tariff?
Are there any market offers for schedules 3, 5 & 6 from existing merchant generators?
What are the logistical requirements to serve this type of load in Illinois.  Internal contacts for some of the components are: Meters-Rick Broussard, Daily Imbalance Management-Services Group, Expected RTO format-Regulatory.
Additionally, we should verify wheeling costs, and treatment of losses from IP border to SWECI system (our models assumed that we provide load grossed up for losses).


- Jim
 -----Original Message-----
From: 	Clynes, Terri  
Sent:	Monday, October 22, 2001 5:12 PM
To:	'dwilleford@sweci.com'
Cc:	Sturm, Fletcher J.; Trefz, Greg; Meyn, Jim; Forster, David; Sewell, Doug
Subject:	RFP Response

Donna, 

I am enclosing for your review our response to Southwestern Electric Cooperative, Inc.'s request for proposal dated October 5, 2001.  We appreciate having the opportunity to respond and hope you will find the attached proposal of interest.

We have submitted an offer for Energy with Imbalance Energy and an offer for Full Requirements Service for the June 1, 2004 to May 31, 2009 period.  Additionally, we are prepared to discuss alternative structures with you if so desired.  


If you have any questions, please do not hesitate to contact me at (713) 853-7724.

Sincerely,

Terri Clynes
Director
Enron North America
(713) 853-7724 (phone)
(713) 646-8272 (fax)
terri.clynes@enron.com

 << File: 10_22proposal.doc >>