RE: Memo on Affiliates

The buyer's counsel has already indicated to his client his conclusion that NNG has to make the commitment. I'll dig up the e-mail to that effect and forward it to you.

-----Original Message-----
From: Steffes, James D.
Sent: Wednesday, October 03, 2001 2:07 PM
To: Kaufman, Paul; Briggs, Tom
Subject: Memo on Affiliates

Paul & Tom --

One concern that I guess may not be fully addressed. If Enron (and EPMI) were considered by FERC to be affiliates of the new HoldCo, we could face the potential that EPMI could lose its market-based rate authority if PGE determines that it does not want to join a FERC approved RTO. Given that PGE makes significant sales at market-based rates out of the Utility, it may be unlikely that they would want to lose this authority for themselves, but we need to be certain that the buyer is committed to this new FERC obligation.

Jim

-----Original Message-----
From: Kaufman, Paul
Sent: Wednesday, October 03, 2001 2:18 PM
To: Steffes, James D.
Subject: V&E Memorandum

<< File: V&E Gas Marketing Memo.doc <<