Message-ID: <20421108.1075853289594.JavaMail.evans@thyme> Date: Wed, 16 Aug 2000 01:23:00 -0700 (PDT) From: rmadden@gibbs-bruns.com To: richard.b.sanders@enron.com Subject: RE: Entergy s&s Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Robert J. Madden" X-To: "'Richard B Sanders'" X-cc: X-bcc: X-Folder: \Richard_Sanders_Oct2001\Notes Folders\Tva X-Origin: Sanders-R X-FileName: rsanders.nsf Richard: My view is that TVA will likely use the FERC ruling to attempt to retroactively bless their treatment of the Enron control areas last summer. Although my understanding is that Entergy used a different method than that employed by TVA to restrict the use of a no-load control area, TVA will argue that the result is the same and that NERC has, thus, approved differing treatment for load and no-load control areas. The FERC ruling will likely create a greater sense of unease on the part of the judge to enforce the rules of NERC, a voluntary association, in the face of what appears at first blush to be a contrary position taken by FERC, a federal agency. Bob P.S. T.O. Helton has suggested that he sit in on the upcoming depositions of Richard Shen and the 30(b)(6) rep. on TVA's alleged damages to get a better feel for the case. Please let me know your thoughts on this. -----Original Message----- From: Richard B Sanders [mailto:Richard.B.Sanders@enron.com] Sent: Wednesday, August 16, 2000 8:03 AM To: Christi L Nicolay; rmadden@Gibbs-bruns.com Cc: Donna Fulton; Elizabeth Sager; Joe Hartsoe; Sarah Novosel Subject: Re: Entergy s&s If we appeal and win it will be helpful to our claim against TVA related to the control area dispute. . While we have not heard it yet, TVA will argue that although TVA did not use the same rational as Entergy to deny parking, Enron has no damages because of the FERC ruling. What are our chances of winning? By copy of this e-mail I will ask our outside counsel, Bob Madden, to comment on how he thinks the FERC ruling can and will be used against us. |--------+-----------------------> | | Christi L | | | Nicolay | | | | | | 08/10/2000 | | | 04:27 PM | | | | |--------+-----------------------> >--------------------------------------------------------------------------- -| | | | To: Joe Hartsoe/Corp/Enron@Enron, Sarah Novosel/Corp/Enron@Enron,| | Donna Fulton/Corp/Enron@ENRON, Elizabeth Sager/HOU/ECT@ECT, Richard B| | Sanders/HOU/ECT@ECT | | cc: | | Subject: Entergy s&s | >--------------------------------------------------------------------------- -| Do you think we should appeal Entergy source and sink FERC order? While I think it is a poorly written order that shows a lack of understanding of the issue, I'm not sure that we can win on appeal or that it is worth appealing, since we would not recover our damages against ComEd and TVA for this summer while the order is in effect. It would be helpful next summer to be able to park in ComEd and TVA, since the RTOs will not be running in all likelihood. Elizabeth/Richard -- Is there a reason in the TVA litigation that we need to appeal the decision? Otherwise, Joe, should we get Dan W. to draft a memo on chances of success or other reasons for filing an appeal?