Message-ID: <17879509.1075844210006.JavaMail.evans@thyme> Date: Tue, 22 May 2001 09:29:00 -0700 (PDT) From: christi.nicolay@enron.com To: richard.shapiro@enron.com Subject: Arizona Public Service v. FERC Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Christi L Nicolay X-To: Richard Shapiro X-cc: X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\All documents X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf Per my voice mail. ---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 05/22/2001 04:28 PM --------------------------- "Dan Watkiss" on 05/22/2001 10:43:59 AM To: cc: Subject: Arizona Public Service v. FERC I think that you should intervene and possibly take an active role for a number of reasons. Only if Enron were to win outright in the S.Ct. would petitioners' challenge in Arizona become moot. But as we have always cautioned, the likelihood of overturning FERC and getting an S. Ct. decision putting all transmission on the OATT remains a long shot. It is more likely that FERC will be affirmed and the DC Circuit's deference to FERC will remain as to what it must be unbundled. In that scenario, it will be important to Enron that the Arizona precedent be upheld against challenge. Specifically, that precedent is that once retail choice is implemented, all transmission becomes unbundled and subject to the OATT, even if later bundled in a default standard offer. Absent legislation, this precedent and the lackadaisical RTOs are the only apparent vehicles for expanding open-access in the near term. For these reasons, Enron should intervene at minimal cost and monitor how well FERC defends itself. If FERC does a good job, that will be the end of its. However, if FERC does a poor job, Enron should then consider filing a supporting brief.