Control Area Reserves

Just wanted to make sure you saw this from Les Rawson concerning Grays Harbor
and Willamette.
-Bill

Beginning immediately Enron has purchased Control Area Reserves service from
BPA.

The allows Services to sell Unit contingent energy as hourly firm since BPA
is suppling reserves for up to 60 Minutes. If Grays Harbor Paper notifies RT
of a unit derate or outage RT should notify BPA dispatch immediately and make
the reduction in the schedule during the next ramp. For example should Grays
unit trip as 1333 RT would notify BPA and the sink that across the top of the
hour for 1400 the schedule would be taken to zero for HE 1400. The bottom
line is that 60 minutes is the maximum time BPA will carry the schedule.

Send me a e-mail concerning any reductions for Grays since the energy would
need to be repaid back within 168 hours.

Also, for May Services sold 10 mw of UC energy to EWEB from Willamette all
hours. As part of this sale Services bought 18 Mw of firm transmission from
PACW to BPAT for all hours. 10Mw of this purchase will be used for the
monthly sale with the remaining 8Mw used for day ahead and hourly sales. The
Assignment Reference # 139990. The cost for this transmission is $2.72 per
hour vs the $5.84 we normally pay for hourly non-firm so hopefully we can
save some money on PAC transmission.

Also, beginning May 1 Services purchased Ancillary Services from PacifiCorp
to allow Willamette's Unit Contingent energy to be sold as 1-hour firm with
reserves. The procedure for dealing with inner hour cuts is similar to Grays
with the exception of not calling PAC RT dispatch. Simply cut or reduce the
schedule at the next ramp and note the derate in a e-mail to Services. This
service adds .43 cents per Mw to the term sale costs. However, this service
applies to Willamette's sales up to 30Mw.

Let me know if there are questions.

Les