FW: Potential POLR Opportunity ,
 -----Original Message-----
From: 	Migden, Janine  
Sent:	Wednesday, July 25, 2001 9:50 AM
To:	Presto, Kevin M.; Ader, Jeff; Allegretti, Daniel; Baughman, Edward D.; Bernstein, Mark; Boston, Roy; Burrows, John; Clynes, Terri; Courtney, Mark; Decker, Charles; Detina, Ken; Frazier, J Ryan; Gahn, Scott; Hueter, Barbara A.; Kingerski, Harry; Landwehr, Susan M.; Letke, Eric; Lewis, James; Mastrangelo, Lino; Merola, Jeff; Migden, Janine; Nicolay, Christi; Persson, Roger; Roan, Michael; Sewell, Doug; Shapiro, Richard; Sharfman, Guy; Sharp, Greg; Snyder, Brad; Steffes, James D.; Stoness, Scott; Ulrich, Marc; Whalan, Jubran; Wood, James; Young, Ress
Subject:	Potential POLR Opportunity

Rob Kelter and Julie Lucas from Citizen's Utility Board (CUB) a residential advocacy group in Illinois called me yesterday to discuss Enron's interest in becoming a provider of last resort for Illinois residential customers served by ComEd.  As a result of the letter that ComEd sent to the ICC regarding the PPO, etc, CUB has met with ComEd regarding the impact on residential customers.  ComEd has told CUB that they do not want to be the provider of last resort and also that their plan is to raise the residential rate high enough to incentivize marketers to come and serve, a plan which is anathema to CUB.

The bottom line is that CUB is either looking to pass legislation for municipal aggregation like Ohio or work out a deal with a supplier to be the POLR and take it to ComEd.  (While I don't know this for sure, I suspect we are the only marketer they have talked to since we were the only ones to express an interest in talking further).  If that doesn't work, they want to force ComEd into doing least cost planning for its supply.

Rob did not know what the unbundled generation rate is but said the all-in rate is approximately $.09/kwh.  Subtracting out t&d we could be looking at a generation price to beat of approximately $.06/kwh. We would also need to factor in the impact of any increase as a result of the DST case because under their filing, the rate increase applies only to customers who switch.  As part of any deal, we could argue to ComEd that the customers we take on should be treated like bundled customers).  I have asked Marc Ulrich and Guy Sharfman for specifics as to the size of the residential load and the unbundled generation rate.

The questions we need to discuss internally include:

1. Is this a deal we could do from a physical delivery standpoint?
2.  If yes, would we want to take on the entire residential load or just a portion, for example the residential customers of the City of Chicago).
3.  Is this an EES deal or is this an ENA deal in which we bring in New Power?  

Your comments and thoughts would be appreciated.  At any rate this will be on the agenda for our ComEd strategy meeting on August 6 - see other emails.  Rob and I agreed to get back in touch the week of August 19th to discuss further.

Janine
rogers.herndon@enron.com