text: FYI
  
   -----Original Message-----
  From: 	Allen, Mark  
  Sent:	Thursday, September 13, 2001 4:29 PM
  To:	Mann, Michael; Blachman, Jeremy; Steffes, James D.
  Cc:	smara@enron.com; Moore, Michael
  Subject:	Raytheon Status/CMTA/Line of Thinking
  
  1) I received E-mail that they may talk tonite about their right to to terminate, but the intention given no news was to continue forward "90% probability"
  2) Ed Munoz, Raytheon Reg Affairs, stated yesterday that his sources believed yesterday that if the PUC acted today, 9/15 would have been the date
  3) While on the phone with me, Jennifer Stone (attorney) received an e-mail from CMTA's Dorothy Rothrock (please see below, lists major CMTA members being fed the CMTA Line) regarding expected CPUC & Legislative actions 
  4) Facility Mgmt view is that "state/DWR fuel costs could escalate if military actions occur and that Enron contract is a hedge to this volatility"
  5) Raytheon has been notified we are not forwarding the Petition just Yet, "fine" I would feel better sending it in next week directly to Raytheon VP Legal after polish
  6) Several of the Team members of Raytheon will be out tomorrow & next week, I doubt a week extension would give them much more comfort, but would probably be a nice to have.
  7) Attorneys are still concerned about exit fees even if date is 9/1 or beyond, but they knew this throughout our contract negotiations and expect fees to not exceed savings
  ---------------------- Forwarded by Mark Allen/HOU/EES on 09/13/2001 04:06 PM ---------------------------
  From:	Jennifer Stone <Jennifer_Stone@west.raytheon.com> on 09/13/2001 03:32 PM
  To:	MAllen5@enron.com@SMTP@enronXgate
  cc:	 
  Subject:	CMTA Energy: Leg Update from Dorothy
  
  Sorry - Idid forget to do this before I went to lunch.  My head is
  cluttered today!
  
  Jennifer L. Stone, Esq.
  Legal Department
  Raytheon Company - Electronic Systems
  EO/E1/E125
  2000 E. El Segundo Blvd.
  El Segundo, CA 90245
  E-mail:  jennifer_stone@west.raytheon.com
  Phone: (310) 647-1025
  Fax: (310) 647-1026
  ----- Forwarded by Jennifer Stone/RWS/Raytheon/US on 09/13/01 01:33 PM
  -----
                                                                                             
                      Pam Ross                                                               
                      <pross@cmta.n        To:     Al Shiroma <Allen.shiroma@conexant.com>,  
                      et>                  Alan Amrhein <amrhein@ppg.com>, Alan Harkins      
                                           <Alan.Harkins@trw.com>, Armando Martinez          
                      09/13/01             <armando.martinez@boeing.com>, Bert Chai          
                      11:50 AM             <bert_chai@baxter.com>, Brent Last                
                      Please               <BJLast@scj.com>, Brian Hildreth                  
                      respond to           <hildrbr1@mail.northgrum.com>, Bryan Campanaro    
                      pross                <bcampana@kcc.com>, Cameron Raether               
                                           <paccoast@mctcnet.net>, "Carl J. Nordquist"       
                                           <carl.j.nordquist@boeing.com>, Carolyn Kehrein    
                                           <cmkehrein@ems-ca.com>, Celeste Signorino         
                                           <Celeste.signorino@conexant.com>, Cheryl Talley   
                                           <ctalley@sierrapine.com>, Chip Brewer             
                                           <FHBrewer@scj.com>, Chuck Halnan                  
                                           <chalnan@ns.net>, Chuck Rogalske                  
                                           <CGRogals@scj.com>, Dan Green <dgreen@ppg.com>,   
                                           Daniel Steen <daniel.steen@owens-ill.com>, Daniel 
                                           Torres <dtorres@tor.moog.com>, David Mills        
                                           <david.m.mills@honeywell.com>, Delette Speelmon   
                                           <dspeelmon@cmta.net>, "Denis St. Jean"            
                                           <dstjean@tosco.com>, Dorothy Rothrock             
                                           <drothrock@cmta.net>, Doug Evans                  
                                           <devans@smurfit.com>, Ed Barbone                  
                                           <ebarbone@tor.moog.com>, Ed Munoz                 
                                           <emunoz@west.raytheon.com>, Elise Rhodes          
                                           <rhodese@baxter.com>, Eric Wong                   
                                           <erwong@worldnet.att.net>, Fred Mazurski          
                                           <fmazurski@usg.com>, Gary Nash <gnash@cmta.net>,  
                                           Gary Rafferty <gary.l.rafferty@boeing.com>, Gene  
                                           Hill <ghill@kcc.com>, Glenn Sheeren               
                                           <gsheere2@iccnet.com>, Jack Stewart               
                                           <jstewart@cmta.net>, Jennifer Stone               
                                           <Jennifer_Stone@west.raytheon.com>, Jim Cottier   
                                           <cottierj@jm.com>, Jim Wikenczy                   
                                           <Jim_Wikenczy@mail.tmmna.com>, Jim Wikenczy       
                                           <JWikenczy@aol.com>, Joanne Horalek               
                                           <jhoralek@smurfit.com>, John Ewing                
                                           <jewing@smurfit.com>, John Hedges                 
                                           <clorraine@hrtextron.textron.com>, John Hunter    
                                           <jmhhr@earthlink.net>, John Norris                
                                           <John.L.Norris@boeing.com>, "Karen (Personal)     
                                           Jarrel" <kjarrell@pacbell.net>, Karen Jarrell     
                                           <kjarrell@smurfit.com>, Karen Lindh               
                                           <karen@klindh.com>, Keith McCrea                  
                                           <kmccrea@sablaw.com>, Kelley McKenzie             
                                           <kmckenzie@nummi.com>, Ken Larson                 
                                           <ken_larson@hp.com>, Kerry Servas                 
                                           <kservas@cmta.net>, Ky Kennedy                    
                                           <kkennedy@usg.com>, Leo Radkowski                 
                                           <radkowsk@jm.com>, Loretta Macktal                
                                           <lmacktal@cmta.net>, Lynn Guest                   
                                           <lguest@us.ibm.com>, Mark Mithers                 
                                           <mithema@mail.northgrum.com>, Michael Crowley     
                                           <michael_crowley@hp.com>, Michael Jackson         
                                           <michael.g.jackson2@boeing.com>, Mike Colwell     
                                           <mcolwell@usg.com>, Mike Reid                     
                                           <mreid@hrtextron.textron.com>, Mike Rowen         
                                           <mrowen@tor.moog.com>, "Miles (Home) Keefe"       
                                           <gtsntni@aol.com>, Miles Keefe                    
                                           <emkeefe@west.raytheon.com>, Mukesh Khattar       
                                           <mukesh.khattar@oracle.com>, Noel Brown           
                                           <noel.e.brown@saint-gobain.com>, Pam Ross         
                                           <pross@camfg.com>, Peter Lennon                   
                                           <plennon@kcc.com>, Randy Smith                    
                                           <rwsmith@us.oracle.com>, Richard Bluth            
                                           <Richard.bluth@conexant.com>, Richard Hall        
                                           <richard.c.hall@intel.com>, Richard Murawski      
                                           <richard_murawski@baxter.com>, Robert Fleming     
                                           <donadio@jps.net>, Roger Riffey                   
                                           <roger.riffey@riotinto.com>, Roland Buchs         
                                           <BUCHS@nachem.com>, Russell Boston                
                                           <reboston@ppg.com>, "Ryan N. Rietzel"             
                                           <rietzrn@bp.com>, Scott Potterack                 
                                           <Scott.Potterack@owens-ill.com>, Stacy Roscoe     
                                           <roscoesa@pg.com>, Steve Bloch                    
                                           <steven.bloch@honeywell.com>, Steve LaFond        
                                           <steven.e.lafond@boeing.com>, Steve Watson        
                                           <swatson@sgcontainers.com>, Susan Stark           
                                           <starksr1@bp.com>, Tim Treichelt                  
                                           <tntreich@gapac.com>, Tom Barrington              
                                           <tom_barrington@hp.com>, Tony Fisher              
                                           <arfisherphd@aol.com>                             
                                           cc:     LaJuneBush@aol.com                        
                                           Subject:     CMTA Energy: Leg Update from Dorothy 
                                                                                             
  
  
  
  
  TO: CMTA Energy Committee
  FROM:      Dorothy Rothrock
  SUBJECT: Legislative Update
  
  As of this morning, we have not seen language from the Senate to replace
  the SBX2 78 that passed out of the Assembly last week.  Rumors are that the
  elements of SBX2 78 will be broken apart into separate bills, put into
  Assembly bills now in the Senate, and sent over to the Assembly for
  concurrence today or tomorrow.  There will probably be a hearing in Senate
  Energy this afternoon on the issues.
  
  We have been working to gain bipartisan support for direct access, assuming
  that it will be pulled from the MOU and run as a separate bill, if at all.
  It is likely that direct access as a stand alone issue does not have the
  votes because of concerns about small customer opposition and a big
  business "jail break."  Our only chance is a coalition of Republicans and
  moderate Democrats that requires the CPUC to suspend direct access, letting
  customers currently on direct access maintain (and renew) their contracts,
  and hopefully preserving the right for future direct access without fees if
  there is net short.  Given the short time we have left, and that we have no
  leverage if the issue is separate from the SCE MOU, I fear this is a long
  shot.
  
  In the absence of legislation to overturn ABX1 1, the CPUC will probably
  suspend direct access later this month.  The proposed decision would leave
  open "the effect to be given to contracts signed before today, including
  renewals of such contracts" to a later decision. (Draft proposed decision
  issued September 6, 2001, not yet acted upon.)
  
  The other information at this time is that the Senate will propose MOU
  language similar to what originally went over to the assembly in SBX2 78 -
  a cut-off for paying SCE debt of greater than 20kw (probably 100kw and
  over) and no direct access.  SCE has previously stated that this is
  insufficient to allow them to issue bonds, thus no creditors could be paid
  and bankruptcy would follow.  CMTA will oppose an MOU bill that proposes a
  disproportionate spread of the debt without any counterbalancing value to
  us such as direct access.
  
  Another piece of this puzzle is the Renewable Portfolio Standard  (SB 532)
  that was attached to the SBX2 78 in order to gain some Democrat support in
  the Assembly.  SB 532 bill got stuck in assembly U&C, but will come over
  from the Senate in another bill.  CMTA worked to get some improvements in
  this bill, including a procedure that could lower the cost cap from 1.5
  cents and in exchange withdrew opposition.  We are NOT in support. My guess
  is that this bill could pass in the Assembly, and I wanted to make it
  "better." The other business groups have not yet determined their
  positions.
  
  I will call Pam with updates to share with you in the next few days.