ERCOT - Next Steps

The following action items are being pursued as next steps -

1. Wohlens Committee Meeting Feb 21

No Enron presentation given previous schedules.
Jean Ryall will attend to hear discussion.
Trying to have Skilling communicate key messages to Wohlens that consumer
benefits will be less than expected because the wholesale rules advantage the
current incumbents. Need to fix the market quickly.

2. PUC of Texas Public Meeting Feb 22

KEY POINT - Asking for delay of Protocol Decision until next Public Meeting
on March 7.
If delay, Ron McNamara and Jean Ryall will develop our next set of comments
that need to be complete by Feb 26 for internal vetting and submitted to
PUC. Critical that we are detailed.
If no delay, Enron intends to seek Request for Rehearing at PUC (Marianne
Carroll will lead effort).

3. Chairman Wood Meeting Feb 28

Ron McNamara and Jean Ryall should work to develop presentation to Chairman
Wood on Enron issues that needs to be complete by Feb 26 for internal
vetting.
Please incorporate information on market activity from Bruce Sukaly and EES.

4. ERCOT

Jean Ryall is seeking to win election to the ERCOT Board to replace Robin
Kittel. Having a vote on the ERCOT Board is critical for our future success.
Ron McNamara is working with ERCOT Change Committee to define necessary fixes
assuming PUC approves Protocols.
Jean Ryall and Ron McNamara are soliciting votes for our proposed changes to
the Protocols currently. Whatever voting process occurs, we need to begin
building the grass roots supports amongst the industry members.

5. Other

Enron needs to begin developing specific changes to the ERCOT protocols. Ron
McNamara and Jean Ryall need to coordinate if we need to hire outside
consultants to support this effort. This is critical for a number of steps.
Enron needs to develop metrics that we can begin recording that will
highlight the failure of liquidity and price transparency. Jean Ryall
should coordinate this activity to use in her political / regulatory
activities. If there are any good ideas on what to use, please forward to
Jean.

I know that making this market work is critical for ENA. If we can do
anything else to advance our interest, please let me know.

Jim