Jack in the Box

---------------------- Forwarded by Lamar Frazier/HOU/EES on 11/16/2001 12:04 PM ---------------------------

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EESHOU-LN12/EES, EESHOU-LN12/EES

________________________

To: James D Steffes/HOU/EES@EES
cc:
From: Lamar Frazier/HOU/EES
Date: 11/16/2001 12:02:42 PM
Subject: Jack in the Box

---------------------- Forwarded by Lamar Frazier/HOU/EES on 11/16/2001 12:02 PM ---------------------------

Enron Energy Services From: Michele Sorensen 11/06/2001 04:57 PM Phone No: 562 901 3807 Office 714 813-0742 Cell 888 578 8404 Pager

To: Andrew Wu/HOU/EES@EES, Mike D Smith/HOU/EES@EES
cc: Lamar Frazier/HOU/EES@EES, Ian McAbeer/HOU/EES@EES
Subject: Jack in the Box

Andy and Mike,

Jack in the Box is in the process of opening 14 new stores in CA. They have requested these stores be added to the Enron Agreement.
Based on the recent information from the CPUC - can we add new facilities to the Jack in the Box contract?

Here's the CPUC language:

"We reaffirm that for the time being, and unless the Commission states
otherwise in a subsequent decision, utilities are required to process DASRs
relating to contracts or agreements that were executed on or before
September 20th, 2001, including DASRs for service to new facilities or
accounts if the underlying contract pursuant to which those DASRs
are submitted allowed for the provision of that additional service. Thus,
for example, with respect to the specific ESP contract described by
UC/CSU in their rehearing application, the utilities are required to accept,
even after September 20, 2001, any DASRs they receive that legitimatley
relate to that contract...[W]e want to make it clear that...utilities cannot
set a deadline after which they could refuse to process DASRs relating
to contracts executed on or before September 20, 2001."

Here's the provision in the Jack in the Box contract:

ADDITIONAL FACILITIES At any time during the term of this Transaction, you may request that we add to this Transaction certain additional facilities owned and operated by you on mutually agreeable terms and conditions, including pricing. If the account(s) at such facility(ies) is/are eligible to receive "direct access service" and the Parties are able to agree to the terms and conditions for adding any such additional facility(ies), the Parties will execute an appropriate amendment to this Transaction effecting such addition.

Please advise.
Thanks, Michele