CEQA ruling ,
 PRIVILEGED AND CONFIDENTIAL
ATTORNEY CLIENT COMMUNICATIONS

Jeff, we wanted to make sure you were aware that the CPUC approved an
alternate decision from Loretta Lynch today that limits the ability of
Edison (CLEC light) to use leased facilities from other providers as an
alternative to getting CEQA approval and building its own facilities.
Upon initial review, it doesn't appear that the ruling would preclude
the arrangement we discussed, in which Enron would purchase SERVICE
(which could be dark fiber) from a carrier with CEQA authority even
though provision of the service would require building new facilities.
I'd like to wait until I see the final version of the decision before
giving you a more definite interpretation, but I wanted to make sure you
were aware of this development until then.  Please call if you have any
immediate questions.
jdasovic@enron.com