RE: Wind Production Tax Credit (PTC)

Linda and I are following the PTC for Corp. out of DC. Ed Coats in Enron
Corporate Tax leads from Houston. We have a Bracewell Patterson attorney in
DC retained to support our corporate tax efforts on Capitol Hill.

Enron Wind also has a lobbyist dedicated 24/7 to this effort.

Mark Metts/Enron@EnronXGate
07/02/2001 10:40 AM

To: Chris Long/Corp/Enron@ENRON
cc: Steven J Kean/NA/Enron@Enron
Subject: RE: Wind Production Tax Credit (PTC)

Chris,

Thanks very much for the prompt reply. This is exactly what I needed. Who
is working this in-house? Do we have any outside resources devoted to it?

Mark

-----Original Message-----
From: Long, Chris
Sent: Monday, July 02, 2001 8:45 AM
To: Metts, Mark
Cc: Kean, Steven; Robertson, Linda; Decker, Larry; Fisher, Dolores
Subject: Wind Production Tax Credit (PTC)

Mark - I left a voice mail on your cell.

The Wind Production Tax Credit expires on December 31, 2001. The PTC will
be extended. There is significant bipartisan support for the PTC, the
revenue number is reasonable, and renewables are a key component of the
energy debate.

The question is when and how. Two likely scenarios are:

1) As part of the Energy Bill. The House Ways and Means Committee will
mark-up the tax portions of the energy bill in mid-July. We understand that
Chairman Thomas is committed to including the PTC as part of the Ways and
Means bill. The Senate Finance Committee has not scheduled a mark-up. While
the energy bill will be debated during July, final action will likely not
occur until after the August recess. In this scenario, look to September at
the earliest.

2) There are 10 provisions, including the PTC, in the IRC that expire by
December 31, 2001. Historically, Congress approves an "extenders" package
late in the session to keep the tax credits functioning. While no one can
predict when Congress will adjourn, they are set to adjourn in early
October. In this scenario, the PTC would be extended in late September at
the earliest.

Mark, this is Congress, so anything can change.

Call me with any questions at (202) 466-9158.