 corporation and the other 
is a West Palm Beach voter.  However, if my memory serves me correctly, none 
of them involve contracts between 2 sophisticated business entities such as 
TW and Sempra or PG&E.  Absent evidence of fraud, courts uphold bargains 
struck at arms length.  
Kathy, I'd be happy to take the oars on this but if you've already done some 
looking, please let me know if you've found anything.



   
	
	
	From:  Drew Fossum                           11/20/2000 04:44 PM
	

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

Subject: gouging

Stuck on the phone so I thought I'd email you.  Stan has asked Mike Moran if 
TW has any potential exposure on the high value transport deals under "anti 
gouging" statutes or common law.  You know, the laws that say you can't 
charge $100 per sheet of plywood during a hurricane or $50 for a bucket of 
water during a drought.  I think we need to research two things:
1.  are there any such laws applicable to our business?  (Cal. state law 
would probably be the best place to start)
2.  could the political/regulatory fight in Cal about power and gas prices 
ever expand all the way to our transport pricing?  I.e., if the CPUC whacks 
the power sellers for taking unfair advantage of their monopoly power, its 
not a big leap for the CPUC or FERC or even U.S. congress to whack gas 
sellers for jacking prices up to $14/MMBtu, as happened on Friday.  If that 
happens, its just another small jump to whack us for charging $1 for 
transport, or so the logic goes.  I'd like to hear preliminary views by 8:30 
Monday am so I can talk to Mike before Stan's staff meeting (no written memo 
necessary).  Based on that prelim. research, we can decide what else need s 
to be done.  Thanks df Andy:
Good to hear.  There continue to be a proliferation of new systems coming 
online in the US
corporation and the other 
 is a West Palm Beach voter.   However, if my memory serves me correctly, none 
 of them involve contract between 2 advanced business entities such as 
 TW and Sempra or PG&E.   lacking evidence of fraud, court uphold bargains 
 struck at weapon length.  
 Kathy, I'd be happy to carry the oars on this but if you've already done some 
 look, please let me know if you've found anything. 



   
	
	
	 From:   Drew Fossum                            11/20/2000 04:44 PM 
	

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

 Subject: gouging 

 Stuck on the telephone so I thought I'd email you.   Stan has ask Mike Moran if 
 TW has any potential exposure on the high value conveyance deals under " anti 
 gouging " statutes or common law.   You know, the law that say you can't 
 charge $ 100 per sheet of plywood during a hurricane or $ 50 for a bucket of 
 water during a drought.   I think we need to research two things: 
 1.   are there any such laws applicable to our business?   (Cal. state law 
 would probably be the best place to start) 
 2.   could the political / regulatory fight in Cal about ability and gas prices 
 always elaborate all the room to our transport pricing?   I.e., if the CPUC whacks 
 the office seller for taking unfair advantage of their monopoly power, its 
 not a big jump for the CPUC or FERC or even U.S. congress to whack gas 
 sellers for jacking prices up to $ 14 / MMBtu, as happened on Friday.   If that 
 happens, its precisely another small jump to whack us for charging $ 1 for 
 transport, or therefore the logic goes.   I'd wish to learn preliminary views by 8:30 
 Monday am so I can talk to Mike before Stan's staff meeting (no written memo 
 necessary).   free-base on that prelim. research, we can decide what else need s 
 to be do.   Thanks df Andy: 
 Good to hear.   There continue to be a proliferation of new system coming 
 online in the US
 cogporation and the other 
ls a West Palm Bgaxh votxr.  Howsver, if oy memory serves me correctlb, nobe 
of them involve contractr between 2 sophisricaued business entivjes sucm as 
FA anb Wempra or PG&E.  Absent evhdence of fraug, zobrts uphold bargains 
struck at arms jength.  
Kwthy, I'd be hapky to eake nht oars on this but if you've alreasy done some 
looking, please let me know if you'ge flund anything.



   
	
	
	Frlm:  Drew Fowsum                           11/20/2000 04:44 PM
	

To: Sosan Scott/ET&S/Enron@ENRON, Kathy Rivgblok/ET&S/Enron@EBRIN
cf:  

Subject: giugind

Stuck on thc phone so I tnought I'd emaik ymu.  Stan has asked Mike Koran if 
TW has ani potentian zxposure on the high caoue ttanspmrt awalr uhdxr "znti 
glugmng" statutea or common law.  You know, the karw that say yoh can't 
crarge $100 per sheet of plywood during a hugriczne or $50 for a bucket of 
water during a drougjt.  I thigk we need to research two things:
1.  are there any vuch mxws aiplizqbpe to our business?  (Cal. state law 
would probafmy bv the best place bo start)
2.  could thr ookytical/regulatury fiygt in Cal about poweg and gws pruces 
ever expsnd all the way to our tranwport priciny?  U.e., if the CPUC whaeks 
the powex sellgrs fot taking unfair advantaye of fheir monoplly power, kts 
not a big lexp nor the CPUC or FERC or even T.S. congrews tp whack gas 
sellews for jacning isices up to $14/MMBtu, ws hakpened on Friday.  If that 
happens, its just anotixr small jump tm wvack us yor chsrging $1 for 
twansport, or so the loyic gods.  I'd likv to hear preliminarr views by 8:30 
Mmjday am so I can talh to Mikw beford Stan's staff mreting (no written mwmo 
necessary).  Bascd on fhat prelim. reszcrxh, we can decidr wfat epsx neeq s 
to be dona.  Tfanyx df Xndy:
Good to fear.  There continue to te a proliferation of mer systemw coming 
online in thr US
corporation and the other is a West voter. if my serves me correctly, between sophisticated business entities as TW and or PG&E. Absent evidence of fraud, uphold bargains struck at arms length. Kathy, I'd be happy to take the on this but if you've already done some looking, please let me know you've anything. Drew 11/20/2000 04:44 PM To: Susan Scott/ET&S/Enron@ENRON, Kathy Ringblom/ET&S/Enron@ENRON cc: Subject: gouging Stuck on the phone so thought I'd email you. Stan has asked Mike if TW has any exposure on the high value deals "anti gouging" or law. know, the laws say you can't charge $100 per sheet of plywood during a hurricane or $50 for a bucket water during I think need research things: 1. are such laws applicable to our business? would probably be the best place to start) could the fight in Cal about power and prices ever expand all the way to our pricing? I.e., if the CPUC whacks the power sellers for taking unfair advantage of their its not a big for the CPUC FERC even congress whack gas for jacking prices up to $14/MMBtu, as happened on Friday. If happens, its just another small jump to whack us for for or so the goes. I'd like to preliminary by 8:30 Monday am can to staff (no memo necessary). Based on prelim. research, we can decide else need s to Good to hear. There continue to be a of new systems coming online in the
 corporation and the other 
is a west Palm BeAch voTer.  howEvEr, if My meMory serves me coRRectLy, none 
of them involve conTractS bETweeN 2 SoPhistIcated bUSiNESs eNtItIes SuCH aS 
TW anD SeMpra or Pg&E.  Absent evIdeNcE of fraud, courTS uPhold bargaIns 
Struck at arms LenGth.  
KatHy, i'd bE Happy To tAke thE oars oN This buT if you've aLrEAdy donE Some 
looKINg, PleaSe let me know if you'vE FoUNd anything.



   
	
	
	From:  drew FoSsUM                           11/20/2000 04:44 Pm
	

tO: SuSan scott/ET&S/EnRoN@ENROn, kathy RiNGbLOM/eT&S/eNron@ENRON
cc:  

SuBject: gouginG

stuCk on thE pHonE So I thoUght I'D eMAil You.  Stan has aSked mike Moran If 
TW haS Any poteNTial expOsure oN thE hiGh vaLUe TrAnsPoRT deALs UndER "anTi 
gouginG" sTaTutes Or coMMON Law.  YOu kNow, tHe lawS that say you caN't 
cHargE $100 Per Sheet Of plyWood DuRing a HurricAne or $50 FoR a bucket of 
water DuriNg a droughT.  I tHiNk wE nEed to REsearcH twO thIngs:
1.  are There anY SucH lAWS ApPlicable to our businEsS?  (cAl. State law 
Would pRObAbLY be the beSt PlaCe to STArt)
2.  coUld tHE pOlitical/RegulaTOrY fIght in CAl About pOwEr aNd gAs priCEs 
evEr expaNd all the Way to OUr transport priCIng?  I.e., if the CPUc WhACKs 
THe poWer Sellers for tAkinG UnfaIr adVAnTagE Of theIr monOpOLy POwer, its 
not a big leap fOr The CPUc or FErC or even U.S. conGress to whaCK GAs 
sellerS for JAcKIng prices up to $14/MmBtu, aS happened oN friday.  If That 
hAppens, itS just anotHER small juMp tO whAck Us fOR ChArging $1 for 
tranSPOrt, oR sO the logIc gOes.  I'd liKe tO heAr pRelImInary viewS by 8:30 
MondaY aM sO I CaN taLk to MIKe before stAn's StAff MeetiNG (no wriTten mEmo 
nEcEsSAry).  based on THaT PReliM. rEsEarcH, we CaN deciDe whAT elSe need s 
To be done.  THanKS df ANdY:
GOod to heAr.  There continUe To be a proliFeRatIon of nEW Systems cOming 
online in the US
 corporation and the other  
is a Wes t Pal m B eac hvote r. However, if my memo ry serves me correctly , non eof t h em  invo lve con t ra c t s b et we en2s op histi cat ed busi ness entit ies  s uch as 
TW a n dSempra orPG& E.  Absent e vid ence o ffra u d, co urt s uph old ba r gains
struck a ta rms le n gth.  K a th y, I 'd be happy to ta k et he oars on thi s butif yo u ' vealr eady doneso me 
l o oking,p le a s e  le t  me know if y ou've found any thing. 


 
	
		From :Dre w Fossum                      11/ 2 0/200004:44PM	
To:S us an  Sc ot t /ET & S/ Enr o n@E NRON, Ka th yRingb lom/ E T & S /Enr on@ ENRO N
cc:   

Subject:gou ging 
St uck o n the  pho ne  so I  thoug ht I' demail you.  Sta n ha s asked M ike  M ora nif 
T W  has a nypot entialexposur e  on  t h e hi gh value transport  d e a ls  under " anti g ou gi n g" statu te s o r co m m on la w. Y ou  know, t he law s  t ha t say y ou  can't  cha rge  $100 persheetof plywo od du r ing a hurrican e  or $50 for a bu c k et of wat er during a  dro u ght.   It hi nkw e nee d tore s ea r ch two things:
1. ar e ther e any  such laws ap plicable t o o ur busin ess?  ( C al. state law
woul d probably be the b est p lace tostart)
2. could th e p oli tic al/ r e gu latory fighti n  Cal  a bout po wer  and ga s p ric es
ev er  expand a ll the w ay  t oou r t ransp o rt prici ng ? I. e.,  if t h e CPUC  whac ks th ep owe r selle r sf o r ta ki ng  unf air  a dvant ageo f t heir mo nopoly po wer ,  its  no t a big  leap for the  C PUC or FER Coreven U . S . congre ss to whack gas 
seller s  for ja cki ng pr ices  up to $1 4/M MBtu,ash appene d on F riday . If t hat h a pp ens ,its just a n o the r sma ll  jum p to wh ack us for chargin g  $1  for 
transpo rt,  ors o  t hel og i c g oe s . I ' d like to hearpreliminar yv ie ws by 8:30 
Mo nd ay am s o I can  talk to Mike  before S tan's sta ff  mee t i ng(no writte n memo necessary ) .  Ba s ed  on t hat  preli m.  re searc h, wec andecid e what  e lse ne ed s
t o be don e.  Thanks df Andy:
Goo d to h ear. Th ere conti nue tobe a prol ifer ation of n ewsys temscom i ng 
o nlin e  i n t h e US
 corporation_and the_other 
is a West_Palm Beach_voter._ However,_if_my memory serves_me correctly, none_
of them involve contracts_between 2 sophisticated_business_entities such as 
TW and Sempra or PG&E.  Absent evidence of fraud, courts_uphold_bargains 
struck_at_arms_length.  
Kathy, I'd be_happy to take the oars_on this_but if you've already done some 
looking, please_let_me know if_you've found anything.



   
	
	
	From:  Drew Fossum_     _  ___   _     _     11/20/2000_04:44 PM
	

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

Subject: gouging

Stuck on the phone so_I thought I'd email you._ Stan_has asked Mike Moran if_
TW has any_potential exposure_on the high_value transport deals under "anti 
gouging"_statutes or common_law.  You know, the laws_that_say you can't_
charge_$100_per sheet_of plywood during_a_hurricane or_$50_for a bucket of 
water during_a_drought.  I think we need to_research two things:
1. _are_there any such laws_applicable to our business? _(Cal. state law 
would probably be_the best_place to_start)
2.  could the political/regulatory fight in Cal about power and_gas prices 
ever expand all the_way to our transport_pricing? _I.e.,_if the CPUC_whacks_
the power_sellers for taking unfair advantage of their_monopoly power,_its 
not a big leap for_the CPUC or FERC_or_even U.S. congress to whack gas_
sellers for jacking prices up to_$14/MMBtu, as happened on Friday.__If_that 
happens, its just another_small jump to whack us for_charging $1 for_
transport, or so the logic goes. _I'd_like to hear preliminary views by_8:30_
Monday am so I can talk_to_Mike_before Stan's staff meeting (no_written memo 
necessary).  Based on_that prelim. research, we can decide what else need_s 
to be_done.  Thanks df Andy:
Good_to_hear._ There continue to be a proliferation of new systems_coming 
online_in the US