Message-ID: <9150152.1075846336494.JavaMail.evans@thyme>
Date: Wed, 8 Nov 2000 08:15:00 -0800 (PST)
From: paul.kaufman@enron.com
To: steven.kean@enron.com
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You asked about:  James W. Cunningham, General Manager - Bellingham 
Operations, Georgia-Pacific Corporation.  

As I understand it, GP is currently served under Schedule 48 by Puget Sound 
Energy.  
Schedule 48 prices the energy component of a customer's rate on the basis of 
an index (I can't recall if its Dow-Jones or NYMEX).  
This summer GP complained about the high prices under the rate schedule and 
accused PSE of improperly implementing the rate schedule.  
While the basic problem was the high prices resulting from application of the 
index, GP nonetheless filed a complaint against PSE at the WUTC.  

GP is advised by Robert McCullough.  Recall that McCullough has issued press 
reports indicating that the capacity shortage 
is a result more of game playing than anyting else.  

I think you can expect Cunningham to be slightly hostile (not so much to 
Enron, but rather to open markets in general)--in this regard he may be an 
advocate for WSCC-wide caps and may argue that there was gameplaying in the 
PNW (which produced high off-peak prices and and a June peak price of about 
$1500 MWh.  
Re:  Enron, Greg Wolfe tells me that ENA
mid-market made several offers through PSE and a variety of consultants to 
try and help GP.  I don't believe any of the offers were accepted.

If Cunningham is speaking for more than just GP--i.e., ICNU as a whole, we 
can expect a slightly softer approach.  Perhaps:  (1) resources are good; (2) 
a WSCC wide cap is appropraite in the near term; (3) a transition to 
restructuring  is appropriate.