Transmission Legislation

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---------------------- Forwarded by Cynthia Sandherr/Corp/Enron on 03/14/2000
12:50 PM ---------------------------

"Clarke-Koonce, Pamela R." <pclarkkoonce@velaw.com< on 03/14/2000 11:37:54 AM
To: "'csandhe@enron.com'" <csandhe@enron.com<, "'anavin@enron.com'"
<anavin@enron.com<
cc: "Wenner, Adam" <awenner@velaw.com<

Subject: Transmission Legislation

<<73084_3.DOC<<

Please see the attached per Adam Wenner:

Cynthia -- Attached is the transmission legislation we discussed. Please
note the following:

1. Revised Sections 201(a) and (b) are not particularly substantive; they
simply correspond the statement of FERC's jurisdiction to our new approach.
The real substance is in the amendments to Section 206. Consequently, we
might want to exclude the Section 201 changes when we circulate it to those
to whom we're just trying to explain the concepts.

2. Our prior draft contained exceptions to the prohibitions to the
prohibition on discriminatory treatment, regarding protection of native load
to protect system reliability and to preserve a utility's ability to comply
with state-imposed obligations to serve. I believe these concepts,
particularly the second, is inconsistent with our new approach, but before
deleting these, wanted to make sure that there is not a political reason
that we should leave them in. I have italicized and bolded these
provisions.

- 73084_3.DOC