Offer of Power to Ontario ,
 The Premier's Office and the Ministry of Energy have received John Lavorato=
's letter setting out the offer of 500MW from New York .  Judy Hubert  (Ass=
istant Deputy Minister, Energy Policy) and her staff have been given the ta=
sk of reviewing the proposal and concept.  Garrett Tripp and I spoke yester=
day to Chris Cincar, an economist who works for Judy.  We reviewed the rati=
onale for the proposal with Chris and made the following points: a) we see =
no supply adequacy problem even in the event Pickering A is delayed; b) the=
 purpose of the proposal is to offer an insurance policy so that the gov't =
can firm up a market opening date of March 1 without any concern about Pick=
ering; c) the prices in any transaction completed pursuant to the proposal =
or something similar would not set the pool prices in Ontario;and  d) we em=
phasized that this was power for delivery during onpeak hours only. Chris a=
sked for some further data regarding historical NY prices for the March thr=
ough June period in 2001 and prior years  and for a comparison of the onpea=
k prices with 7x24 prices. Chris is away next week and we will be speaking =
to him again after Labour Day. Chris indicated that he wants to talk about =
the proposal to the IMO and other potential power suppliers.  Thinking more=
 about this, if in fact this is something Ontario pursues, Garrett and I th=
ink that the obvious  governmental agency to be the counterparty would be  =
OEFC, which will hold a wholesaler licence in Ontario.  OEFC could issue an=
 RFP for the power required and secure the power from a range of suppliers =
outside the Province.
rob.milnthorp@enron.com, paul.devries@enron.com, richard.shapiro@enron.com