Message-ID: <16737717.1075859512311.JavaMail.evans@thyme> Date: Thu, 19 Aug 1999 09:44:00 -0700 (PDT) From: elizabeth.sager@enron.com To: mark.haedicke@enron.com, jeffrey.hodge@enron.com, richard.sanders@enron.com Subject: Re: TVA authority Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Elizabeth Sager X-To: Mark E Haedicke, Jeffrey T Hodge, Richard B Sanders X-cc: X-bcc: X-Folder: \Elizabeth_Sager_Dec2000\Notes Folders\All documents X-Origin: Sager-E X-FileName: esager.nsf FYI ---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 08/19/99 04:43 PM --------------------------- Enron Capital & Trade Resources Corp. From: Cynthia Sandherr @ ENRON 08/13/99 04:48 PM To: Joe Hartsoe/Corp/Enron@Enron cc: Elizabeth Sager/HOU/ECT@ECT, Steven J Kean/HOU/EES@EES, Christi L Nicolay/HOU/ECT@ECT, James B Fallon/HOU/ECT@ECT, Joe Hillings/Corp/Enron@Enron Subject: Re: TVA authority Joe: I do not know if you have contacted I.G. George Prosser yet. Apparently, the Hill & Knowlton bad press is all over today's local valley papers. I spoke to two Hill contacts today who advise that if George Prosser appears at all reluctant to proceed, please let me know and these Hill contacts will contact him directly to advise him to go forward as they are willing to lend him their political support. Cynthia Sandherr 08/11/99 08:49 PM To: Elizabeth Sager/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@Enron cc: Steven J Kean/HOU/EES@EES, Christi L Nicolay/HOU/ECT@ECT, James B Fallon/HOU/ECT@ECT, Joe Hillings/Corp/Enron@Enron (bcc: Cynthia Sandherr/Corp/Enron) Subject: TVA authority Craven Crowell's authority to act without a full TVA board is limited by federal statutory authority to only carrying out "administrative functions." He is explicitly prohibited from carrying out "policy functions" without the other board members in place. We know who the Administration intends to nominate for the two board vacancies, however, these candidates can only be officially nominated and confirmed by Congress sometime after Congress reconvenes on September 8th at the earliest. Since I know you would like an immediate fix to your TVA control area issue, during the month of August you might pursue TVA's policy actions against our control area in violation of federal statute. (In the meantime, however, I am continuing to work the Appropriations strategy (best possible resolution date October 1, 1999) and the Authorization strategy (best possible resolution date October 7, 2000.)) Currently, the TVA Inspector General George Prosser who can be reached at (423) 632-4120 is in hot pursuit of Mr. Crowell. He has successfully had legislation introduced to curb Mr. Crowell's authorities, and soon will issue a report (sure to receive much front page negative publicity) that Mr. Crowell "lied" to Congress by failing to disclose a TVA $100,000 monthly publicity retainer with Hill & Knowlton to a House Congressional Oversight Committee. Ironically, this retainer was to help Mr. Crowell obtain favourable earned media. We believe the I.G. could easily be persuaded to pursue the wrong-doing caused by Mr. Crowell in developing TVA policy in the absence of a board. If he pursues the case, he would likely immediate reinstate our positions during the investigation so as not to cause further harm, plus he could require TVA to pay damages if he successfully proves his case. Regardless, this investigation would cause nasty publicity for TVA. I have discussed with Joe Hartsoe what materials he may wish to provide the I.G. in order to help him make our case that this action "created policy." I have also given Joe Hartsoe a listing of all of TVA's industrial customers likely curtailed during the heat wave. We should contact a few of these industrials in order to also ask them to intervene against TVA's policy action on our control area. These industrials could also claim monetary damages from being wrongfully curtailed by a policy that arguably reduced the amount of available power in the region. The down side is Mr. Crowell could pursue "administrative" retributions against Enron activities.