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Are you no longer involved?
dev35
It is a fairly complicated matter---Britt Davis is in the best position to explain the status.
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He will call you.
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FYI.
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Dow Jones had a story on our lawsuit.
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I think we are in favor of the idea depending on what we buy.
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Frankly, the kids don't need anything there.
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What the house really needs are pots and pans.
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What is the suggestion?
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I don't know when we are coming---our lives are too hectic right now.
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Give me a call when you get a second.
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I tried to call you today.
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Please let Linda know what is happening.
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I closed the Charles Schwab account that contained the Pedernales money becuase Schwab began charging a $15 per quater account fee.
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Does anyone have any suggestions about where to put it--other than in Doug Hester's college tuition.
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The account is up to(down to) $8500.
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This message was garbled.
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Can you send it again?
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To: Christian Yoder/HOU/ECT@ECT, steve.c.hall@enron.com, Richard Sanah Smith/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Dennis Benevides, Tim Subject: Proposed Answer of CMUA's Complaint As you have already heard, California Municipal Utilities Association filed a complaint with FERC asking for cost based rates.
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The following is a briefoutline of an EPMI/EES answer to the complaint.
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The answer is due Friday.
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Please send me any comments ASAP.
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?
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The complaint should be rejected because it wrongly assumes that the Commission has no option to ensure just and reasonable rates but to requirecost based rates because there is no low cost solution to the problems currently faced by the California markets.
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We should attach our white papeto our protest and state that the paper explains how these problems could bsolved at little or no cost to the customers.
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?
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I list here, for your information, the reasons CMUA claims that markets are not competitive (these reasons will not be re-listed in the pleading).
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?
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2000 prices greatly exceeded 1999 prices without regard to load.
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?
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zonal constrained prices, even in the off-peak hours, do not reflect competitive outcomes for low load conditions.
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?
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even small players can be price setters ?
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The changes required are additional generation, transmission, and demandresponse and will cost tens of millions of dollars and take lengthy periodsof time to implement.
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?
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There is no evidence that markets will ensure just and reasonable rates ithe near future.
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?
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CMUA asserts that with the advent of electric restructuring, the Commission has increasingly allowed energy and ancillary services to be sold at market-based rates.
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However, CMUA is wrong in the context of the West wherthere has been market-based trading of electricity before electric restructuring, since the FERC approved the Western Systems Power Pool,scontract in 1991.
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The Commission,s rules didn,t create the wholesale market in the past, the market did and it was running fine until it was messed up by certain market rules were imposed that are enumerated in our paper.
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The problem is not the market-based rates.
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The problem is the market rules.
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?
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CMUA,s motion does not address how market-based rates would be calculated for marketers that do not sell power from their own resources, let alone reflect the trading of basis points.
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Almost all of the power EPMI sells ispower it has bought from some other marketer or generator.
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Many of EPMIdeals are done through brokers such that EPMI does not find out the identitof the seller until after a deal has been struck.
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Accordingly, EPMI gets ninformation about the cost of the underlying generation.
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?
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If FERC doesn,t try to fix the market but simply takes away our market-based rates, since there,s is no basis for us to set cost based rates, we would go out of business.
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Besides there,s no reason to take away ourmarket-based rates because we are not exercising market power.
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So if FERCcould fix the problem with a less onerous solution (as we,ve proposed in our white paper), requiring cost-based rates would constitute a regulatory taking of our business and we would have to be compensated using the constitutionastandard.
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CMUA does not provide any expert testimony to support its position.
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Ratheits evidence is &drawn from materials prepared and testimony delivered by the California ISO and other public sources.8 Beyond the difficult evidentiissue posed by the fact that CMUA cannot swear to the veracity of information produced by third parties, EPMI would have no opportunity to conduct discovery or cross-examine of such &witnesses.8
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All of Thursday morning is good.
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How long do you think this should take?
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Lets meet Wed.
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at 3:00.
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I'll hold both of these open until I hear from you.
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Steve Allen at Buchanan Ingersol in Lexington KY.
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Please arrange this
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Do I really need a paragraph?
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One word-----Litigation.
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Wed.
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the 1st of Nov. is good.
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Same time and place?
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Please respond to nlorentzatos
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Can you attend the meeting and the conference call?
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Kevin Presto
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What is this?
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no
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I have set up a conference call at 11:30 on Monday to discuss.
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FYI
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The e-mail should suffice as an official policy.
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Let me know if you need anything more.
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The answer is yes but I would like to hear from Barbara or Shonnie before I give you the go-ahead.
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Ladies?
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I have a trip to Portland scheduled for the 2nd and 3rd.
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What about the week of the 6th?
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The 6th, 7th, and 8th are especially good.
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Lisa-- this looks fine to me but you have a better feel for what you want.
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I would keep a close eye on the bill( perhaps a maximum amount Millbank can bill)
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Bonnie-- If you have not already done so, we should gather our documents Linda-- Please coordinate this effort
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Bonnie white, an Enron inhouse litigator, and my paralegal, Linda Guinn, Will gather the requested documents.
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Linda--713-853-6104, Bonnie---713-853-7244
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My paralegal, Linda Guinn, will call you about this--- which is another way of saying "my dog ate my homework"
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Although I would love to allow someone else the opportunity to participate in this project, it makes more sense for me to be the Enron rep.
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What do I need to do to begin the transition?
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The Joint Defense Agreement looks good,except for the application of Florida law.
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Have you looked at Fla. law?
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With respect to limitations on possible claims, you have a good point.
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Please look at the limitations issue in light of what you know.
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An extensive review of the depositions doesn't seem warranted to me.
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I would also suggest we enter into a Tolling Agreement w/ Power systems ASAP.
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Call me to
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This works for me-- please confirm if the call is going forward
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The attachment opened
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Yes.
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She is ex-Bracewell and I know her pretty well.
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The 8th at 8:30 is good.
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The extension is fine as long as it is short.
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