Enron Mail

From:paul.kaufman@enron.com
To:steven.kean@enron.com
Subject:
Cc:
Bcc:
Date:Wed, 8 Nov 2000 08:15:00 -0800 (PST)

You asked about: James W. Cunningham, General Manager - Bellingham
Operations, Georgia-Pacific Corporation.

As I understand it, GP is currently served under Schedule 48 by Puget Sound
Energy.
Schedule 48 prices the energy component of a customer's rate on the basis of
an index (I can't recall if its Dow-Jones or NYMEX).
This summer GP complained about the high prices under the rate schedule and
accused PSE of improperly implementing the rate schedule.
While the basic problem was the high prices resulting from application of the
index, GP nonetheless filed a complaint against PSE at the WUTC.

GP is advised by Robert McCullough. Recall that McCullough has issued press
reports indicating that the capacity shortage
is a result more of game playing than anyting else.

I think you can expect Cunningham to be slightly hostile (not so much to
Enron, but rather to open markets in general)--in this regard he may be an
advocate for WSCC-wide caps and may argue that there was gameplaying in the
PNW (which produced high off-peak prices and and a June peak price of about
$1500 MWh.
Re: Enron, Greg Wolfe tells me that ENA
mid-market made several offers through PSE and a variety of consultants to
try and help GP. I don't believe any of the offers were accepted.

If Cunningham is speaking for more than just GP--i.e., ICNU as a whole, we
can expect a slightly softer approach. Perhaps: (1) resources are good; (2)
a WSCC wide cap is appropraite in the near term; (3) a transition to
restructuring is appropriate.