Below are filings that EPMI and EES will make next week.  Once granted by 
FERC, they will allow EPMI and EES to perform some regulatory filings and 
functions on behalf of the industrials.  An industrial selling into the grid 
will still be considered a "licensed power marketer", but we can handle many 
of the tasks, thus making it easier for them to sell to Enron, rather than 
another power marketer that has not filed this application at FERC.

I talked to Kevin about this last night, and we discussed the fact that this 
FERC authorization WILL NOT allow the industrial to circumvent its host 
utility tariff.  Therefore, if the industrial is restricted from selling 
power from its on-site generator to the grid by the host tariff, FERC will 
not override that.  (FERC made that clear in the initial 'InPower" filing in 
response to a request from JEA.)  For example, several years ago at Jim 
Fallon's request, we checked the HLP tariff and found that it restricted EPMI 
from selling power to the grid from the generators in the Enron building 
basement.

While Kevin thinks that this can be a valuable filing, he is concerned that 
many utility sales tariffs restrict power sales to the grid from on-site 
generators.  In addition, Mark Dobler and John Berger are working at EES on 
distributed generation solutions and could be restricted from the optionality 
that grid sales provide vs. use of distributed generation on site.  

It seems that we may want to focus some state resources on making sure that 
the utility tariffs, especially in open access retail states, provide for 
maximum flexibility for industrial customers.  

Let me know if you would like me to visit with Mark Dobler about this or 
provide other assistance.  Thanks.  Christi

---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 02/09/2001 
09:51 AM ---------------------------


"Kimberly Curry" <kcurry@bracepatt.com> on 02/08/2001 03:50:44 PM
To: <christi.l.nicolay@enron.com>
cc:  

Subject: InPower-type filings


Christi,

Attached are clean copy and redlined version of the EPMI and EES filings.

137355 - EES clean copy
MBR.wpd - redline of EES filing
133268 - EPMI clean copy
MBR.wpd - redline of EPMI filing


 - 0137355.01
 - MBR1.WPD
 - 0133268.02
 - MBR.WPD