Subject: Re: Idea
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 6 Oct 2000 02:15:00 -0700 (PDT)

Jeff, can you speak briefly with Kevin on this one - intriguing idea if the 
execution was probable.

By the way, what is our plan with Sithe?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/06/2000 
09:13 AM ---------------------------
   
	Enron North America Corp.
	
	From:  Kevin M Presto                           10/06/2000 08:50 AM

To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Re: Idea  

Put a bid into SOCO's shareholders for the transmission assets only.  Since 
the market is valuing Genco assets at a much higher multiple, a bid at book 
value for the transco would be very intriguing to the existing shareholder 
base.

Given a high probability of supply shortage in Florida over the next 2-4 
years, the transmission gateway to Florida is extremely valuable, 
particularly if expansions are done off the existing system.

In addition, it would give Enron tremendous regulatory leverage with the 
pending Entergy/FPL (SOCO connects systems), and the entire SE market, 
including TVA.

I know it's a longshot, but we will have to do something radical to bust open 
the SE market into a free functioning commodity market.  The SE is 
essentially untapped from a power trading standpoint right now, and the 
market is nearly 200,000 MW if you include Florida.