Summaries of Positions

Attached are cryptic summaries of the current positions. WPTF, APX, ISO and
IEP are all fairly similar. Enron is working with those parties to develop a
common proposal. The "Reform Coalition" (RC) is Hogan, sponsored by Sempra,
with ORA/TURN/UCAN (they are all nuts), Reliant, Southern and WIlliams.
Without the gens, they were going nowhere. Southern has already left the
coalition. We and others have put a full court press on to Reliant (the
source of the problem is John Stout in Houston). The word is that Reliant
will also leave -- we're hoping for a big splash saying both Southern and
Reliant have left.

The other confusing issue is --why Sempra/San Diego G&E? Terry Winter, ISO
CEO and former officer at SDG&E, says that Sempra thinks nodalism is the only
way to get prices high enough in San Diego to encourage construction of more
power plants. More power plants, more gas sales.

The first item is a matrix from mid-April laying out all the positions at the
time. The RC has now introduced a slightly new proposal called "voluntary"
-- the concept being that you may opt for nodal or zonal on a month-by-month
basis. This had not much support at the meeting at the ISO on May 10 and 11
-- especially since you end up with nodalism anyway.

The next item is a VERY LONG (45 pps) ISO doc -- the ISO proposal is called
zonal forward -- from late April.

I also included APX's "flowgate" model, which has some intriquing
characteristics and which we can support with some slight modifications (it's
very close to what we have proposed, and may be easier to use in a world with
more parallel flows than we have today)

If you want more, more, MORE -- go to the ISO web site (caiso.com) then to
Client Services, then to congestion reform, to see all the gory detail.