FERC Staff Investigation Report

----- Forwarded by Jeff Dasovich/NA/Enron on 11/15/2000 04:24 PM -----

Sarah Novosel
11/10/2000 02:24 PM

To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Susan J Mara/NA/Enron@Enron,
Jeff Dasovich/NA/Enron@Enron, Mona L Petrochko/NA/Enron@Enron, Sandra
McCubbin/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON, mpalmer@enron.com,
Alan Comnes/PDX/ECT@ECT, Tom Briggs/NA/Enron@Enron, Cynthia
Sandherr/Corp/Enron@ENRON, Donna Fulton/Corp/Enron@ENRON, David
Parquet/SF/ECT@ECT, Christopher F Calger/PDX/ECT@ECT
cc: Christi L Nicolay/HOU/ECT@ECT
Subject: FERC Staff Investigation Report

In Staff's report on its investigation of the bulk power markets in the east,
the Midwest report notes on page 2-15, Additions to Capacity, that new
generation has been added in the Midwest region, and that some market
participants believe that developers sited new generation in the Midwest
because there were no price caps.

Steve Kean suggested that we refer to this finding in our November 20
comments on the California order and specifically draw the conclusion that no
price caps leads to more generation development.

The Midwest report is attached. Please let me know if you have any questions.

Sarah