Enron Mail

Subject:Re: New PUHCA Exemption Legislative Language
Cc:steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com,joe.hillings@enron.com, tom.briggs@enron.com, joe.hartsoe@enron.com, sarah.novosel@enron.com, dwatkiss@bracepatt.com, awenner@velaw.com
Bcc:steven.kean@enron.com, richard.shapiro@enron.com, james.steffes@enron.com,joe.hillings@enron.com, tom.briggs@enron.com, joe.hartsoe@enron.com, sarah.novosel@enron.com, dwatkiss@bracepatt.com, awenner@velaw.com
Date:Sun, 10 Sep 2000 23:23:00 -0700 (PDT)

Cynthia, Ken said to tell you that he told David Sokol we would probably
oppose it.


Cynthia Sandherr
09/08/2000 04:49 PM

To: Kenneth Lay/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Richard
Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES, Joe
Hillings/Corp/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON,
dwatkiss@bracepatt.com, awenner@velaw.com
Subject: New PUHCA Exemption Legislative Language

Yesterday, Ken Lay spoke with MidAmerican CEO David Sokol regarding the
attached new legislative amendment to provide a limited PUHCA exemption for
companies with a high level of financial stability as determined by
independent market analysts (i.e. "A" rating for Holding Companies or
investment grade rating for utility companies). This is not a permanent
exemption as PUHCA would again apply should the company loose its high rating.

MidAmerican's lobbyist reported this conversation to me along with Ken Lay's
reported commitment that we would review it as soon as we could. Reportedly,
Ken Lay was non-committal but not negatively disposed.

The utility strategy is to have Senator Bob Kerrey (D-NE) offer this as an
amendment to a "must pass" piece of legislation during the waning days of
this Congressional session. This will be separate from the utilities'
strategy to enact Private Use legislation (H.R. 4971, S. 2967 which includes
tax language to exclude water and sewage connection fees from gross income as
contributions to capital and language to increase the amount permitted to
paid into nuclear decommissioning reserve funds primarily for Commonwealth
Edison) and to enact stand-alone Reliability legislation (S. 2071 and H.R.

Senator Kerrey has already spoken to Senator Gramm (R-TX) about this PUHCA
amendment and Gramm was reportedly non-committal but not negatively disposed
to the idea. I will follow-up with Gramm's staff next week after they've
reviewed it and convey their views to you. According to MidAmerican, the
concept to insure stockholder protection along with consumer protection was
Senator Kerrey's idea.

It is possible that Congressman Dingell (D-MI) and Congressman Markey (D-MA)
would still actively oppose this limited exemption, especially given the fact
that Congressman Dingell (who would Chair the Commerce Committee should the
Democrats regain control of the House) has recently said that whether or not
he is Commerce Committee Chairman next Congress, that comprehensive
electricity restructuring legislation including PUHCA repeal is "at least
three years away from happening."

Steve and Rick, can we get a temperature gauge next week as to our position
on this amendment? As a reminder, Enron's position here-to-date has been to
oppose stand-alone PUHCA repeal as this is the one provision utilities like
Southern Company really want. To date, this strategy has worked with the
MidAmerican Utility Group willing to support our transmission open access
provisions in turn for our PUHCA exemption support.