Re: Master Sales

Gregg: In late 1999, the ICC Staff conducted an informal "workshop"
regarding a proposed set of affiliate transaction rules for gas utilities.
Enron Energy Services, peoples and others filed comments. Based on the
comments, Staff circulated a proposed rule but there was no immediate
follow-up. The Commission issued a notice indicating that it would further
review the matter after its January, 2000 gas policy meeting. Thereafter,
in August, 2000, the ICC Staff submiited a Report recommending that a rule
be adopted. On Sept. 22, 2000, the rule was published for "first notice" in
the Illinois Register. The ICC also initiated Docket 00-0586 to review the
rules. In Docket 00-0586, the assigned Hearing Examiner determined that no
hearings would be held to review the rules. As a result, only written
comments were considered. Several parties (including Peoples/North Shore)
filed comments (although Enron did not). The Examiner issued a Proposed
Order on April 23, which-if adopted-would direct publication of the rules
for "second notice" (45 days for the Joint Comm. on Admin. Rules to comment
before final effectiveness). The issues raised by the comment s are
summarized in the Proposed Order. Exceptions to the Proposed Order (i.e.,
comments regarding the proposed decision) are due May 11 and replies to
Excpetions are due May 18. The Examiner did not attach the modified rule,
but notes that the few changes made to Staff's initial draft are discussed
in the order. I will fax to you the Proposed Order and Staff initial draft
rule. The next step in the process is ICC review of the Proposed Order,
followed presumably by Illinois Register Publicaion of the adopted rule.

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