 on all the issues and is 
the result of negotiations.  Enron was the only marketer involved in the 
process.  While we weighed in all the issues, there are a number of items 
that but for our persistence would not have been included in the final 
agreement.  These items include the following:

1.  Native load language
2.  Competitive metering and billing for industrial and large commercials as 
of day one, with other customers following no later than within the next four 
years.
3.  Addition of competitive bidding for default service at end of 5 years.
4.  Change from functional separation to a requirement to corporately 
separate as soon as possible but no later than within the next five years.
5.  Strong codes of conduct that form the base for more detailed rulemaking.  
(A special thanks to Lara Leibman for her assistance).

Below is a summary of the entire settlement:

1.  All customers can exercise choice beginning January 1, 2001.
2.  All utilities including IOU's, munies and coops can opt in.  APS has 
committed to opt in whereas AEP is not because it did not get any stranded 
cost and it also did not get a guarantee of full recovery of all costs 
resulting from the environmental lawsuits against them irrespective of their 
financial condition.  
3.  Competitive metering and billing as described above.
4.  Generation is deregulated.
5.  PSC continues jurisdiction over implemention, rate unbundling, 
reliability, codes of conduct, supplier licensing, construction of 
transmission lines and eminent domain authority.
6.  Native load language - Requires utilities to provide service to 
affiliated and unaffiliated suppliers only under the applicable distribution 
tariffs and proformatransmission tariffs.
7.  RTO's - Each utility must join a FERC approved RTO or its equivlent by no 
later than 1/1/03;  best efforts requirement to eliminate pancaking by 1/1/05 
if IOU's are in separate RTO's.
8.  Competitive bidding process for  default service customers at end of year 
5 for remainder of transition period.
9.  Rate unbundling requirement
10. Rates capped for first 4 years with any
on all the issues and is 
 the result of negotiations.   Enron was the only seller imply in the 
 process.   While we weighed in all the topic, there be a number of items 
 that but for our continuity would not have been included in the final 
 agreement.   These item include the following: 

 1.   Native warhead language 
 2.   Competitive metering and billing for industrial and big commercial as 
 of day one, with other customer following no subsequently than within the following four 
 years. 
 3.   Addition of competitive bidding for default option service at end of 5 years. 
 4.   Change from functional interval to a requirement to corporately 
 separate as soon as possible but no later than within the future five years. 
 5.   Strong codes of conduct that form the base for more detailed rulemaking.  
 (A special thanks to Lara Leibman for her assistance). 

 Below is a summary of the entire settlement: 

 1.   All customers can exercise choice beginning January 1, 2001. 
 2.   All utilities including IOU's, munies and coops can choose in.   APS has 
 perpetrate to opt in whereas AEP is not because it did not make any ground 
 cost and it also did not get a guarantee of full recovery of all costs 
 resulting from the environmental lawsuit against them irrespective of their 
 financial condition.  
 3.   Competitive metering and billing as described above. 
 4.   Generation is deregulated. 
 5.   PSC continues jurisdiction over implemention, rate unbundling, 
 reliability, codes of conduct, supplier licensing, structure of 
 transmission note and eminent knowledge domain authority. 
 6.   Native load language - Requires utility program to provide service to 
 affiliated and unaffiliated suppliers only under the applicable distribution 
 tariffs and proformatransmission tariffs. 
 7.   RTO's - Each utility must join a FERC approve RTO or its equivlent by no 
 later than 1/1/03;   dear efforts necessity to eliminate pancaking by 1/1/05 
 if IOU's are in freestanding RTO's. 
 8.   Competitive bidding procedure for   default servicing customers at end of class 
 5 for remainder of transition period. 
 9.   Rate unbundling requirement 
 10. Rates capped for first 4 years with any
 on all the issues and is 
tme result of negotiatiois.  Enrkn was tfe only marketer involved in tye 
pricess.  While we weighea in all nhe issuew, thtre are a number of items 
that gmt fox iur persistencg would not vave been inclgddd in the final 
agreement.  These itemf incluce the following:

1.  Nauivq lozd language
2.  Competitive metering znd bilning for induxtrial and large commerciaps ad 
of day one, with lther custoners dollowing no later than within the next four 
years.
3.  Addition of cumpetntive biddibg fog default secvice wt end of 5 ycsrs.
4.  Cvange ftom functional se'ararion to a requirement to corporately 
sekarate as vokn as possible bur bo lajer tvan duthkn uhe nsxt fige bears.
5.  Strohg codes of conduct that form uhe vase for more detaijeq rulemaking.  
(A special thanks to Lara Neigman for her assistance).

Velow is a summary of the entiwe settlement:

1.  All customers can exercise choice teginiivg Lqnuarh 1, 2001.
2.  All utilities including IOU's, munies and coo[a vak opt in.  APS haf 
committed tl pkt in whereas XEP is nof because it did nlt get wny srranded 
cjst snd it also did not get a gyarantee of yulo recovery of all eosts 
resultnng frpm thr environmental lawsuitr agzinst them lrrespectjxe of their 
finavcisl condition.  
3.  Competitive ietering end bnlling ar dexcribeq above.
4.  Gfnerabhon is deregulated.
5.  PSC cmntinues jkrisdiction over implemention, reve unbundling, 
ralidbility, eodes pf conduct, su[plier licensiug, constxuctiov of 
transjission lines and qminent domait authority.
6.  Iative lowd lqnguqge - Redjires utilitiex to provpdt service ro 
affiliated and mnaffkmiated supplierw obly under the alplkcaflv dmstrifgtion 
tariffv ana pfpformxtransmissiiv tatiffs.
7.  RTO's - Each uthlitg must join a FERC aiproved RJO or its equivlent by no 
later than 1/1/03;  btst efhorts cequirrmegt to eliminate pancaking by 1/1/05 
jf IOU's age ln separate REO's.
8.  Competitive bidding process for  default service cnstomers at end of yeat 
5 for remainder of ttanxition peripd.
9.  Rwte unbungling requirement
10. Rares capped for fivst 4 years with any
on all the issues and is the negotiations. was the marketer involved in in the issues, there a number of that but for our persistence would have been included in the final agreement. These items include the following: 1. load language 2. Competitive metering and billing for industrial and large commercials as day with customers no later than within the next four years. 3. Addition of competitive bidding for default service end of 5 years. 4. Change from functional to a requirement to separate as soon as possible no than within next years. Strong codes of that form the base for more detailed rulemaking. (A special thanks to Lara Leibman for her assistance). is a the entire 1. customers exercise choice beginning 2001. 2. All utilities including IOU's, can opt in. APS has committed to opt whereas AEP not because it did not get stranded cost and it also did not get guarantee of full recovery of all costs resulting from the environmental lawsuits against them irrespective financial condition. 3. Competitive and billing as above. Generation deregulated. PSC continues over implemention, rate unbundling, reliability, codes of conduct, supplier licensing, construction transmission lines and eminent domain authority. 6. Native load language utilities provide service to and unaffiliated suppliers only the distribution tariffs and proformatransmission RTO's Each a approved or its equivlent by later than 1/1/03; best efforts to eliminate pancaking by separate RTO's. 8. Competitive bidding process for default customers at end of year 5 for of transition period. 9. Rate unbundling requirement 10. Rates capped for first years with
 on all the issues and is 
the resUlt of negotIatioNs.  ENroN wAs thE onlY marketer involVEd in The 
process.  While we weighEd in aLl THe isSUeS, therE are a nuMBeR OF itEmS 
tHat BuT FoR our pErsIstence Would not haVe bEeN included in tHE fInal 
agreemEnt.  these items inCluDe the fOlLowINg:

1.  NatIve Load lAnguagE
2.  competItive meteRiNG and biLLing for INDuStriAl and large commercIAlS As 
of day one, with Other cUsTOmERS foLloWing no lateR tHan wiTHin the nEXt FOUR 
yeARs.
3.  Addition of cOmpetitive bIDdiNg for dEfAulT ServicE at enD oF 5 YeaRs.
4.  Change froM funCtional seParatiON to a reqUIrement To corpOraTelY 
sepARaTe As sOoN As pOSsIblE But No later tHaN wIthin The nEXT FIve yEarS.
5.  StrOng coDes of conduct tHat Form THe bAse foR more DetaIlEd rulEmakinG.  
(A speCiAl thanks to Lara LEibmAn for her aSsiStAncE).

BElow iS A summaRy oF thE entire SettlemENt:

1.  ALl CUSToMers can exercise choIcE BEgInning JaNuary 1, 2001.
2.  ALL uTiLIties incLuDinG IOU'S, MUnies And cOOpS can opt iN.  APS haS 
CoMmItted to OpT in wheReAs AeP iS not bECausE it did Not get anY straNDed 
cost and it alSO did not get a guARaNTEe OF fulL reCovery of all CostS 
ResuLtinG FrOm tHE enviRonmeNtAL lAWsuits against them irReSpectiVe of tHeir 
financial Condition.  
3.  COMPEtitive mEterINg ANd billing as desCribeD above.
4.  GeneRAtion is dEreguLated.
5.  PSC Continues JURisdictiOn oVer ImpLemENTiOn, rate unbundlING, 
relIaBility, cOdeS of condUct, SupPliEr lIcEnsing, conStructioN oF 
tRaNsMisSion lINes and emInEnt DoMaiN authORity.
6.  NaTive lOad lAnGuAGe - REquires UTiLITies To PrOvidE seRvIce to 
AffiLIatEd and unAffiliateD suPPlieRs OnLy under The applicable DiStribution 
TaRifFs and pROFormatraNsmission tariffs.
7.  RTO's - EacH Utility MusT join A FERc approved rTO Or its eQuiVLent by No 
lateR than 1/1/03;  BeSt eFFOrts rEQUiRemEnT to eliminaTE PanCakinG bY 1/1/05 
if IoU's are iN separate RTO's.
8.  CompeTItiVe bidding procEss For  dEFAuLt sERvICe cUsTOmeRS At end of year 
5 for rEmainder of TrANsItion perioD.
9.  ratE uNbundliNg requiRemenT
10. rates caPped for fiRst 4 years wItH any
 on all the issues and is
the resul t ofneg oti at ions .  E nron was the o n ly m arketer involved in th e 
pr oc e ss.Wh ile w e weigh e di n  al lth e i ss u es , the reare a n umber of i tem s
that but fo r  o ur persist enc e would nothav e been  i ncl u ded i n t he fi nal 
a g reemen t.  These  i t ems in c lude th e fo llow ing:

1.  Nativel oa d  language
2. Compet it i ve m ete rin g and bill in g for industr i al a n d l a rge commercia ls as 
of d a y o ne, wi th  ot h er cus tomer sf oll owing no la terthan with in the next fo u r 
year s.
3. Ad dit iono fco mpe ti t ive bi ddi n g f or defau lt  s ervic e at e n d  of5 y ears .
4. Change fromfun ctio n alsepar ation  toarequi rement  to c or porately 
separ ateas soon a s p os sib le  butn o late r t han  within  the ne x t f iv e y ea rs.
5.  Strong cod es o fconductthat f o rm  t h e base f or  mo re d e t ailed  rul e ma king.  (A spe c ia lthanksto  LaraLe ibm anfor h e r as sistan ce).

Be low i s  a summary oft he entire set t le m e nt : 

1.   A ll customer s ca n  exe rcis e  c hoi c e beg innin gJ an u ary 1, 2001.
2.  Al lutilit ies i ncluding IOU' s, muniesa n d  coops c an o p ti n.  APS has 
c ommit ted to opt in where as AE P is not  becausei t  did not  ge t a nystr a n de d 
cost and i t also  d id notget  a guar ant eeofful lrecoveryof all c os ts  re sul tingf rom theen vir on men tal l a wsuits  agai nstth em irr especti v eo f  the ir  fina nci al  cond itio n . 
3.  Co mpetitive  me t erin gan d billi ng as describ ed  above.
4.  Gen eratio n is dereg ulated.
5.  PSC continu e s juris dic tionover  implemen tio n, rat e u n bundli ng, 
r eliab il ity , codes o fcon du ct, suppli e r  li censi ng , co nstruct ion of 
transmissi o n l ines and emin ent  dom a i naut h or i ty. 
6 .   N a t ive load langua ge - Requi re s  u tilities t o  pr ov ide ser vice to  
aff i liatedand unaff iliated s up plie r s  on ly under t he appli cable dis t ribut i on  
tar iff s andpr ofo rmatr ansmis s ion  tari ffs.
7 . RTO's  - Ea ch  utility  must join a FERC appro ved RT O orits  equivlen t b y  no  
later t han1/1/03;  b est  ef forts  re q uirem entt oeli m inate  pan c aking by1 /1 /05 if  IOU's arei n sep arate  RT O 's.
8.   Co mpetitive bidding process for  d efau l t  se rvi c e cu st omers at end o f y ea r 
5 for r em ainder of t ransitio np eriod .
9. Rate u nbundli n g  r e quirem ent10.  Rates ca ppe df or firs t4y ears w ithan y
 on_all the_issues and is 
the_result of_negotiations._ Enron_was_the only marketer_involved in the_
process.  While we_weighed in all_the_issues, there are a number of items 
that but for our persistence would not_have_been included_in_the_final 
agreement.  These items_include the following:

1.  Native_load language
2._ Competitive metering and billing for industrial and_large_commercials as 
of_day one, with other customers following no later than_within the next four 
years.
3. _Addition of competitive_bidding_for_default service at end_of 5 years.
4.  Change from_functional separation to a requirement to_corporately 
separate as soon as possible but_no later than within the next_five years.
5.  Strong codes_of conduct_that form the base for_more detailed rulemaking._ 
(A_special thanks to_Lara Leibman for her assistance).

Below is_a summary of_the entire settlement:

1.  All customers_can_exercise choice beginning_January_1,_2001.
2. _All utilities including_IOU's,_munies and_coops_can opt in.  APS has_
committed_to opt in whereas AEP is not_because it did not_get_any stranded 
cost and_it also did not get_a guarantee of full recovery of_all costs_
resulting from_the environmental lawsuits against them irrespective of their 
financial condition. _
3.  Competitive metering and billing_as described above.
4. _Generation is_deregulated.
5._ PSC continues_jurisdiction_over implemention,_rate unbundling, 
reliability, codes of conduct, supplier_licensing, construction_of 
transmission lines and eminent domain_authority.
6.  Native load_language_- Requires utilities to provide service_to 
affiliated and unaffiliated suppliers only_under the applicable distribution 
tariffs_and_proformatransmission_tariffs.
7.  RTO's - Each_utility must join a FERC approved_RTO or its_equivlent by no 
later than 1/1/03; _best_efforts requirement to eliminate pancaking by_1/1/05_
if IOU's are in separate RTO's.
8.__Competitive_bidding process for  default_service customers at end of year_
5 for remainder of transition period.
9.  Rate unbundling_requirement
10. Rates capped_for first 4 years with_any