----- Forwarded by Jeff Dasovich/NA/Enron on 02/06/2001 11:39 AM -----

JMB <JBennett@GMSSR.com<
02/06/2001 11:28 AM

To: "Jeff Dasovich (E-mail)" <jdasovic@enron.com<
cc: MBD <MDay@GMSSR.com<
Subject:

On January 26, 2001, the Commission voted out an order which "suspends",
effective as of that date, all penalties that companies on interruptible
programs could incur as a result of failing to cut back on electricity when
called to do so by the UDC. By suspension, the commission means that the
appropriate portions of the tariffs are withdrawn. As a result, the UDCs
will not bill customers for penalties nor track them for potential future
payment. The order continues by stating that the UDC can continue to
notify customers of times when an interruptible curtailment would occur. The
Commission expects such customers to do so to the extent feasible. But if
they don't, there will be no penalty.

The rationale behind the order was that customers on interruptible rate
schedules have been faced with an increasingly irreconcilable dilemma;
either curtail their electric service or pay large penalties, "either of
which cause increasingly deleterious effects on themselves and the
California economy."

If you have any quesitons about the order, give me a call.

Jeanne