RE: CA BIZMIX Issues ,
 Peggy informed me on Monday that she did not want to send any notice letter=
s to customers advising of the discontinuation of bixmiz, and asked if we c=
ould somehow, someway, continue to offer the product going forward.  I have=
 a message into Richard re:  Peggy's message to me...MLC


---------------------- Forwarded by Marianne Castano/HOU/EES on 08/02/2001 =
09:47 AM ---------------------------
From:=09Stacey Bolton/ENRON@enronXgate on 08/01/2001 05:21 PM
To:=09Heather Mathis/HOU/EES@EES, Richard Ring/HOU/EES@EES, Marianne Castan=
o/HOU/EES@EES
cc:=09Michael Terraso/ENRON@enronXgate, Jeffrey Keeler/Corp/Enron@ENRON=20
Subject:=09RE: CA BIZMIX Issues

My suggestions are below.  Thanks Heather for the helpful update.
 -----Original Message-----
From: =09Mathis, Heather =20
Sent:=09Tuesday, July 31, 2001 1:30 PM
To:=09Bolton, Stacey; Ring, Richard; Castano, Marianne
Subject:=09CA BIZMIX Issues

Hello all!

I met with Diann Huddleson today and she clarified some issues for me regar=
ding the DASRing of customers in California.  Unfortunately it wasn't what =
we wanted to hear.

On the easy side of things, all residential customers (PGE, SCE, SDG&E) wer=
e turned back to the utilities starting May 30th (DASRs were submitted and =
they are cycling off now depending upon meter reading cycles, etc.)  These =
customers received a letter letting them know about it.

On the commercial side of things (Diann had no distinctions between small c=
ommercial & large commercial & industrial customers), SDG&E customers have =
been ours all along and have never been DASRed and reDASRed.  In PGE & SCE,=
 IBM behind PGE was also never put through the DASR process and has continu=
ously received our product.  All other PGE & SCE customers were originally =
submitted for DASRing back to the utilities on - January 31!!!!!  That prov=
ides enough issues of its own, but I'll get to that.  PGE did a virtual swi=
tch so as of Jan 31 all these customers became PGE's again, but with SCE, w=
hen a customer was switched depending upon meter reading cycles, etc.  All =
de-DASRed customers were then re-DASRed back to us starting June 21, and Di=
ann indicated that not only all of our old customers were re-DASRed, but ne=
w contracts were being executed and these new customers were also being DAS=
Red to us.  No communication about all of this has been sent to the custome=
rs, but as we discussed, some personal basis notice may have been given to =
our larger customers through the reps.

So - I'm not worried about the residential side - we'll have to send them a=
n annual historical label next April (with perhaps a letter explaining why =
they're still receiving info from us).  As far as the commercial/industrial=
 .......

1.  No notice was provided to probably the majority of the customers. [Bolt=
on, Stacey]  We (or PR) should prepare a customer letter as discussed with =
Peggy, notifying them that they are no longer receiving Bizmix ASAP.
2.  They've been receiving system mix since Feb 1 and we've been proceeding=
 as if it were actually BIZMIX - i.e. the 2nd quarter labels they just rece=
ived indicated BIZMIX, as appropriate to the customer. [Bolton, Stacey]   W=
e should look into purchasing green tags to make these customers whole if w=
e will be more than 5% off of our projection v. what we actually delivered.=
  The regs allow for discrepancies between projections and actual, and you =
don't have to show an extra column w/ the difference if you are w/in 5% del=
ta band between projection and actual..  We can change the projection for t=
hird quarter and include this information in the customer letter.=20
3.  What are the new customers (those as being DASRed to us the first time =
as of June 21) being told they are receiving?  Are they being marketed BIZM=
IX? [Bolton, Stacey]   We should ensure this is not the case with originati=
on.  Someone in Jeremy B.'s shop will most likely know.=20
4.  As far as dates are concerned for reporting purposes, will we just use =
those given as the date of submission (i.e. Jan 31, May 30, June 21) as it =
is impossible to pinpoint when each individual customer transferred? [Bolto=
n, Stacey]   We should discuss this a bit.  I'm not sure that this will rea=
lly matter at the end of the day.  The CEC has instructed us all along to s=
end labels to the customers, which we have.  We'll report the purchases (br=
own and green) as normal at the end of the year.=20

Let me know your input.

Heather
stacey.bolton@enron.com