EES/EPMI Split ,
 i heard dave's voicemail.  i appreciate his concern.  however, i don't thin=
k that the delineation is easy to do.  i am confident that my team knows wh=
at we are good at and what we aren't good at.  if we aren't best suited to =
serve the load, we will act like "one enron" and send the account over to t=
he them.  the split should really be driven by the customer's needs and whi=
ch utility they are behind.  for example, montana power has a wonderful bal=
ancing tariff where the utility looks at the scheduled volume and compares =
it to the actual volumes and settles directly with the customer for imbalan=
ces.  we don't do any metering, we don't do any unique billing, the loads r=
ange anywhere from 1 MW to 25 MW.  ena is definitely best suited to serve t=
hese industrials because commodity price is their top interest.  the pugest=
 system is about to open up with a structure that is similar to montana's. =
 ena will be very well positioned to serve this load.  the same company cou=
ld have a plant in california.  we wouldn't serve that load because the exp=
ertise needed to manage the ctc risk (before this thing blew up anyway), th=
e challenge of metering and tracking metered volumes on a schedule vs. actu=
al basis, and the load forecasting.  the same company could also own gas st=
ations in the west.  we have no interest in serving gas stations.

i also heard the message attached to dave's from scott dann (sp?).  his mes=
sage did little to open communication between groups.  he provided no detai=
ls on what the issue was in the west with respect to epmi (ena) and ees.  f=
or us to do this right, ees and ena need to be able to solve problems witho=
ut involving the office of the chair of each company.  i would be happy to =
work with anyone from ees to resolve who should be covering which accounts.

i still can't think of a clean way to divide customers.  each approach has =
its problems.  each company (ees and ena) has its strengths.  our strength =
is commodity pricing and delivering a mw to anywhere on the western grid.  =
their strength is in tariff analysis, energy management, and aggregating lo=
ads.

for the west, i am confident that chris calger and i can sort out any dispu=
tes with ees that are reasonable.  we know what we are good at.  we have a =
proven track record with a large number of industrials in the west.  i stil=
l believe that our customers and shareholders are best served with our favo=
red approach.  it will require better communication on the operating level =
between ees and ena.
louise.kitchen@enron.com