Buy Down

We met with the legislator who is in charge of the Summer 2001
subcommittee today to discuss Enron's buy down proposal. Dave Freeman
had discussed the idea with her previously, however, his version
required that the contract be for a pre-arranged price, based on the
notice you were given presumably by the ISO, i.e. 24 hours = x, 12 hours
= y, etc. Consequently, her concern with our proposal was the
uncertainty of allowing customers to choose whether or not they want to
shut down based on price versus requiring them to shut down to meet
demand, i.e. a modified interruptable.

She requested that we provide her with information about existing buy
down programs and their successes.