Message-ID: <9172383.1075852509080.JavaMail.evans@thyme> Date: Mon, 22 Oct 2001 07:24:57 -0700 (PDT) From: d..steffes@enron.com To: tom.hoatson@enron.com Subject: RE: Pennsylvania $147,000 EES Assessment Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Steffes, James D. X-To: Hoatson, Tom X-cc: X-bcc: X-Folder: \JSTEFFE (Non-Privileged)\Steffes, James D.\Sent Items X-Origin: Steffes-J X-FileName: JSTEFFE (Non-Privileged).pst Tom -- Where do we stand with this? Jim -----Original Message----- From: =09Hoatson, Tom =20 Sent:=09Thursday, September 20, 2001 9:42 AM To:=09Sharp, Vicki; Keller, James Cc:=09Montovano, Steve; Steffes, James D. Subject:=09Pennsylvania $147,000 EES Assessment EES was recently assessed $147,000 by the Pennsylvania PUC as a method of r= ecovering their costs. Enron's local PA attorney, Kevin Moody of Wolf, Blo= ck, Schorr and Solis-Cohen LLP, notified us that he has taken the lead for = a group of natural gas suppliers to challenge the assessments and inquired = if Enron wanted to be a part of the group. The group includes IOGA (an ass= ociation of oil & gas suppliers in PA), TXU, Hess, New Power, and 4 others.= Moody successfully got a postponement of the payments until Oct 16. EES = is included in the postponement at this time. The options are to litigate = the assessment (Moody feels we are on solid ground to prevail) or to negoti= ate a settlement with the PUC where we agree to some assessment to be deter= mined. Litigating the assessment could cost about $50K - $60K (in addition= to the $25K to date) whereas settling would obviously be less expensive in= itially but would provide an assessment for each year going forward. Moody= id meeting with the PA PUC this Friday to determine what would be the best= way to proceed (he is hoping to convince them that the statute is quite cl= ear that they cannot make the assessment and that they withdraw it). We wi= ll have a better grasp of the situation and clearer path for the direction = we should pursue after that meeting. I will keep you informed. =20