 California proceeding was initiated after entire 
communities of individual consumers suffered 200-300% increases in their 
electricity bills.  The prices for electricity in California were outrageous 
across the board and affected everyone in the state.  By contrast, TW's 
transport rates for its short-term deals are far removed from end user prices 
and the practice of negotiating higher than max rate deals is probably not 
widespread enough for anyone to notice.  It is far from being a consumer 
issue, and besides, the elections are over.  However, as you and I have 
already discussed, we must be wary of parties like Dynegy that do notice just 
about everything and who might try to draw it to FERC's attention.  We do 
need to watch to see whether other pipelines serving California are doing the 
same types of deals.  Kathy, why don't you and I discuss a system of 
monitoring the contract information postings of El Paso, Kern, PGT/NW.  Drew, 
obviously I've only scratched the surface here so let's talk if you want a 
more in-depth report.




   
	
	
	From:  Drew Fossum                           11/21/2000 10:36 AM
	

To: Susan Scott/ET&S/Enron@ENRON
cc: Kathy Ringblom/ET&S/Enron@ENRON 

Subject: Re: gouging  

That is by far the best line of the day!!  Unconscionability may be the thing 
I'm remembering, but I think there is some more specific law related to 
market dislocations--i.e., the Hurricane example.  Its sort of a twist on 
market power law--i.e., if the fates hand you short term market power, you 
better not use it.  DF    



Susan Scott
11/21/2000 10:08 AM
To: Drew Fossum/ET&S/Enron@ENRON
cc: Kathy Ringblom/ET&S/Enron@ENRON 

Subject: Re: gouging  

I know there is some case law out there on contracts being voided because 
they are "unconscionable."  There are several examples in consumer law and 
employment law, in which one contracting party is a
California proceeding was initiated after entire 
 communities of individual consumers suffer 200 - 300% increase in their 
 electricity bills.   The prices for electricity in California were outrageous 
 across the dining table and affected everyone in the state.   By line, TW's 
 transport rates for its short - condition deals are far removed from conclusion user prices 
 and the exercise of negotiating higher than max rate deals is probably not 
 widespread enough for anyone to detect.   It is far from being a consumer 
 issue, and besides, the elections are over.   However, as you and I have 
 already hash out, we must be wary of parties like Dynegy that do notice just 
 about everything and who might test to draw it to FERC's attention.   We do 
 need to watch to see whether early pipelines serving California are doing the 
 same types of deals.   Kathy, why don't you and I discourse a system of 
 monitoring the contract information postings of El Paso, Kern, PGT / NW.   Drew, 
 obviously I've only scratched the surface here so let's talk if you desire a 
 more in - astuteness report. 




   
	
	
	 From:   Drew Fossum                            11/21/2000 10:36 AM 
	

 To: Susan Scott / ET&S / Enron@ENRON 
 cc: Kathy Ringblom / ET&S / Enron@ENRON 

 Subject: Re: rout  

 That is by far the best line of the day! !   Unconscionability may be the matter 
 I'm remembering, but I think there constitute some more specific law related to 
 grocery store dislocations -- i.e., the Hurricane example.   Its sort of a twist on 
 market power police -- i.e., if the fates hand you short term grocery store power, you 
 well not use it.   DF    



 Susan Scott 
 11/21/2000 10:08 AM 
 To: Drew Fossum / ET&S / Enron@ENRON 
 cc: Kathy Ringblom / ET&S / Enron@ENRON 

 Subject: Re: gouging  

 I know there constitute some case law out there on contract being voided because 
 they are " unconscionable. "   There are several example in consumer law and 
 use law, in which one contracting party is a
 Capifornia proceeding was lnitiated after gnrire 
cmmmunifies of kndividual consumers sufferev 200-300% ibcreawes in their 
electricigy bills.  The prixes hor electricity mh California scre obtcageous 
across jhe board ang affected evesyunz in the state.  By contrast, TW's 
tranfport rstfs for its shott-terk deams are far removed from end user pdices 
aid the practice of negotiating higher thaj mad rate deals is prlbably not 
qidefpread enough for anyont co notice.  Jt is far from being a consumer 
issuz, and besidgs, tjg elections ere ovvr.  However, as you ang I havr 
already discmssed, we must be wary of partmes like Dynegy that do notica lust 
about everything abd whm micht gey go srew jt to VERR's attentioh.  We do 
newd to watch to see ehqnner other pilelinef ferving California are doing the 
same tjpes of deals.  Kathy, why dob't you and I discuss w system jf 
monitoring the contract information postings ox El 'aro, Jevn, PER/NA.  Drew, 
obviously I've only scratched the surfwde hvre so let's talk lf you want a 
more ij-drkth report.




   
	
	
	Ftom:  Drzs Rossum                           11/21/2000 10:36 AM
	

To: Sussn Scott/ET&S/Enron@ENRON
cc: Katyy Ringblom/EN&S/Eneon@ENRON 

Subject: Rz: gouging  

Tkat is by fsr the best line of the day!!  Unconsciojability jxy be the thing 
K'm gemekbering, but I think there ys some mire xpecifiz lae relaeed to 
marnet dlvlocations--i.e., the Hkrriccne efample.  Itd sort of a twist on 
market powxc law--i.e., if thg fdtev hand yju shprt term markqt power, you 
bgtter not use kt.  DF    



Ausan Srott
11/21/2000 10:08 AM
To: Dwew Fossum/ET&S/Ajron@ENRON
cc: Nathy Riggblim/ET&W/Enron@EVFON 

Subject: Re: gouging  

I know thwre is some case lew oot there on contrcetw being voided necxusq 
nheb are "gnconscionabne."  Ghefr are several excmoles in consumer law and 
empmoyment law, in whivh one conjracting [arty is a
California proceeding was initiated after entire communities consumers 200-300% increases their electricity bills. California outrageous across the and affected everyone the state. By contrast, TW's transport for its short-term deals are far removed from end user prices and the of negotiating higher than max rate deals is probably not widespread enough for to It far being a consumer issue, and besides, the elections are over. However, as you and I have discussed, we must be wary of parties like that do notice just everything and who might try draw to FERC's We need watch to see other pipelines serving California are doing the same types of deals. Kathy, why don't you and I a system the contract postings El Kern, PGT/NW. Drew, only scratched the surface here so you want a more in-depth report. From: Drew 11/21/2000 10:36 To: Susan Scott/ET&S/Enron@ENRON cc: Kathy Ringblom/ET&S/Enron@ENRON Re: gouging That is by far the best of the day!! Unconscionability may be the thing I'm remembering, but I think there is specific law related to dislocations--i.e., the Hurricane Its of twist market power if the fates hand you short term market power, you better use it. DF Susan Scott 11/21/2000 10:08 AM To: Drew Kathy Subject: Re: gouging know there is some law there on contracts being they "unconscionable." examples consumer and employment law, in one contracting party is a
 California proceeding was inItiated aftEr entIre 
ComMuNitiEs of Individual consUMers Suffered 200-300% increases in theIr 
eleCtRIcitY BiLls.  ThE prices FOr ELEctRiCiTy iN CALiForniA weRe outraGeous 
acrosS thE bOard and affecTEd Everyone in The State.  By contrAst, tW's 
traNsPorT Rates For Its shOrt-terM Deals aRe far remoVeD From enD User priCES 
aNd thE practice of negotiATiNG higher than max Rate deAlS Is PRObaBly Not 
widesprEaD enouGH for anyONe TO NOtiCE.  It is far from bEing a consumER 
isSue, and BeSidES, the elEctioNs ARe oVer.  However, aS you And I have 
aLready DIscusseD, We must bE wary oF paRtiEs liKE DYnEgy ThAT do NOtIce JUst 
About eveRyThIng anD who MIGHT try To dRaw iT to FErC's attention.  WE do 
Need TO waTch to See whEtheR oTher pIpelinEs serViNg California are DoinG the 
same tYpeS oF deAlS.  KathY, Why don'T yoU anD I discuSs a systEM of 
MoNITOrIng the contract infoRmATIoN postingS of El PASo, keRN, PGT/NW.  DrEw, 
ObvIousLY i've onLy scRAtChed the sUrface HErE sO let's taLk If you wAnT a 
mOre In-depTH repOrt.




   
	
	
	FroM:  Drew FosSum                           11/21/2000 10:36 AM
	

tO: Susan Scott/ET&S/eNron@ENRON
cc: KaTHy rINgBLom/Et&S/ENron@ENRON 

SuBjecT: re: goUginG  

thAt iS By far The beSt LInE Of the day!!  UnconscionaBiLity maY be thE thing 
I'm rememBering, but I THINk there iS somE MoRE specific law reLated To 
market diSLocationS--i.e., thE HurricaNe example.  iTS sort of a TwiSt oN 
maRkeT POwEr law--i.e., if the fATEs haNd You shorT teRm markeT poWer, You 
BetTeR not use it.  dF    



Susan SCoTt
11/21/2000 10:08 aM
to: dreW FossUM/ET&S/EnroN@EnROn
cC: KaThy RiNGblom/Et&S/EnrOn@ENrOn 

SUBjeCt: Re: gouGInG  

i Know ThErE is sOme CaSe law Out tHEre On contrActs being VoiDEd beCaUsE 
they arE "unconscionabLe."  there are seVeRal ExamplES In consumEr law and 
employment law, in WHich one ConTractIng pArty is a
 California proceeding was  initiated  afte r e nti re  
co mmun ities of indiv i dual  consumers suffered 20 0-300 %i ncre a se s intheir e le c t ric it ybil ls .  The p ric es forelectricit y i nCalifornia w e re  outrageou s across the b oar d andaf fec t ed ev ery one i n thes tate. By contr as t , TW's 
transp o r trate s for its short-t e rm deals are farremove df ro m end  us er prices
a nd th e  practi c eo f neg o tiating highe r than maxr ate  deals  i s p r obably  not
w i des pread enoug h fo r anyoneto not i ce.  It is farfrom b ein g a  con s um er  
i ss u e,a nd  be s ide s, the e le ct ionsareo v e r .  H owe ver,  as y ou and I have  
a lrea d y d iscus sed,we m us t bewary o f par ti es like Dynegythat  do notic e j us t ab out e v erythi ngand  who mi ght try todr a w it  to FERC's attenti on .  W e do 
ne ed tow at ch to see w he the r ot h e r pip elin e sservingCalifo r ni aare doi ng  the sa metyp es of deal s.  Ka thy, why  don' t  you and I dis c uss a systemo fm on i tori ngthe contrac t in f orma tion po sti n gs of  El P as o ,K ern, PGT/NW.  Drew,  obviou sly I 've only scra tched thes u r face her e so le t 's talk if you  want  a 
more i n -depth r eport .




  
	
	
	Fr o m :  DrewFos sum                    11 /2 1/200010: 36 AM


T o:Sus anSc ott/ET&S/ Enron@EN RO Ncc :Kat hy Ri n gblom/ET &S /En ro n@E NRON
Subje ct: R e: g ou gi n g 

Thati sb y  far  t he  bes t l in e ofthed ay! !  Unco nscionabi lit y  may  b ethe thi ng 
I'm remem be ring, butIthi nk the r e  is some  more specific law rela t ed to mar ket d islo cations-- i.e ., the  Hu r ricane  examp le. It s s o r t ofa tw ist  o n 
marketp o wer  law- -i .e.,  if the  fates hand you sh o rtterm market p owe r, y o u  bet t er not  u s e i t .   DF    



Sus an Scott
1 1/ 2 1/ 2000 10:08 AMTo : DrewFossum/ ET&S/ E nron@EN RON
cc: K athy Ring bl om/E T & S/E nron@ENRON  

Subje ct: Re: g o uging  
I kn owthereis  so me ca se law out  ther e on c on tracts  bein gvoided b ecause 
they are "uncon sciona ble."   T here aresev e ral  examples  inconsumer l awand  
emp loy m ent l aw,i nwhi c h one  con t racting p a rt y i s a
 California_proceeding was_initiated after entire 
communities_of individual_consumers_suffered 200-300%_increases_in their 
electricity_bills.  The_prices for electricity in_California were outrageous_
across_the board and affected everyone in the state.  By contrast, TW's 
transport rates_for_its short-term_deals_are_far removed from end user_prices 
and the practice of_negotiating higher_than max rate deals is probably not 
widespread_enough_for anyone to_notice.  It is far from being a consumer_
issue, and besides, the elections are_over.  However,_as_you_and I have 
already_discussed, we must be wary of_parties like Dynegy that do notice_just 
about everything and who might try_to draw it to FERC's attention._ We do 
need to_watch to_see whether other pipelines serving_California are doing_the 
same_types of deals._ Kathy, why don't you and_I discuss a_system of 
monitoring the contract information_postings_of El Paso,_Kern,_PGT/NW._ Drew,_
obviously I've only_scratched_the surface_here_so let's talk if you want_a_
more in-depth report.




   
	
	
	From: _Drew Fossum  __   _    _     _ _ _    11/21/2000 10:36 AM
	

To: Susan Scott/ET&S/Enron@ENRON
cc: Kathy Ringblom/ET&S/Enron@ENRON_

Subject: Re: gouging  

That is_by far the best_line of_the_day!!  Unconscionability_may_be the_thing 
I'm remembering, but I think there_is some_more specific law related to 
market_dislocations--i.e., the Hurricane example.__Its sort of a twist on_
market power law--i.e., if the fates_hand you short term market_power,_you_
better not use it. _DF    



Susan Scott
11/21/2000_10:08 AM
To: Drew_Fossum/ET&S/Enron@ENRON
cc: Kathy Ringblom/ET&S/Enron@ENRON 

Subject: Re: gouging _

I_know there is some case law_out_there on contracts being voided because_
they_are_"unconscionable."  There are several_examples in consumer law and 
employment_law, in which one contracting party is a