Message-ID: <27955047.1075858659885.JavaMail.evans@thyme>
Date: Mon, 6 Aug 2001 19:59:00 -0700 (PDT)
From: marianne.castano@enron.com
To: peggy.mahoney@enron.com
Subject: RE: CA BIZMIX Issues/Confidential
Cc: richard.ring@enron.com, stacey.bolton@enron.com, heather.mathis@enron.com
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Thanks, Peggy...MLC




Peggy Mahoney
08/06/2001 01:16 PM
To:=09Marianne Castano/HOU/EES@EES
cc:=09=20
Subject:=09RE: CA BIZMIX Issues/Confidential  =20

I just talked to Stacey and I think we'll send a letter discussing the fact=
 that the funds have
run out, etc.  I'll be back to you with a draft.
Thanks
Peggy   =20



Marianne Castano
08/02/2001 12:05 PM
To:=09Peggy Mahoney/HOU/EES@EES
cc:=09=20
Subject:=09RE: CA BIZMIX Issues/Confidential

 =09=09


This is in regard to discontinuation of the Biz Mix product -- as you can s=
ee from the messages from Stacey below, we have stopped offering the produc=
t because the energy credit funds have been depleted.  I'm still going to a=
sk Richard Ring (He's on vacation)  on Monday your question -- ie, is there=
 any way we can continue with it, notwithstanding.   I fear he is going to =
say its possible to do so, but at an extreme loss of $$$....MLC


---------------------- Forwarded by Marianne Castano/HOU/EES on 08/02/2001 =
01:01 PM ---------------------------
From:=09Stacey Bolton/ENRON@enronXgate on 08/02/2001 12:00 PM
To:=09Marianne Castano/HOU/EES@EES
cc:=09=20
Subject:=09RE: CA BIZMIX Issues

You're welcome.  Hope I see you on Monday.  My understanding is that surpri=
singly some of the money that we've already submitted has been paid due (de=
spite the fund being depleted) to overpayment/accounting issues with other =
entities.  This also has to do w/ the time lapse between filing for reimbur=
sement for 3 months prior (i.e. I don't think Richard anticipated getting p=
aid for some of January's purchases because technically the fund ran out in=
 December).  There is definitely not enough money to continue buying going =
forward in the C&I fund.  It might be replenished next January provided dir=
ect access goes through. =20
 -----Original Message-----
From: =09Castano, Marianne =20
Sent:=09Thursday, August 02, 2001 11:44 AM
To:=09Bolton, Stacey
Cc:=09Ring, Richard; Mathis, Heather
Subject:=09RE: CA BIZMIX Issues

Thanks, Stacey.  I hope all's well.  I'm going to get with him on Monday (I=
'll be in Houston) -- I seem to recall his mentioning that one particular f=
und is not 100% depleted, and that technically, we could continue to offer =
the product.  Do you remember his noting this?  MLC




From:=09Stacey Bolton/ENRON@enronXgate on 08/02/2001 11:30 AM
To:=09Marianne Castano/HOU/EES@EES
cc:=09Richard Ring/HOU/EES@EES, Heather Mathis/HOU/EES@EES=20
Subject:=09RE: CA BIZMIX Issues

Richard is on vacation until Monday.  To continue the Bizmix product, we wo=
uld need the customer credit monies.  The customer credit monies for the Bi=
zmix were depleted in January.  Perhaps Richard can work a deal for tags, b=
ut I still think this would be a premium and affect their positions in CA. =
 I'm sure Richard will give you more detail, but wanted to make sure you we=
re aware of the situation w/ the incentive funds.
 -----Original Message-----
From: =09Castano, Marianne =20
Sent:=09Thursday, August 02, 2001 8:52 AM
To:=09Bolton, Stacey
Cc:=09Ring, Richard; Mathis, Heather
Subject:=09RE: CA BIZMIX Issues

Peggy informed me on Monday that she did not want to send any notice letter=
s to customers advising of the discontinuation of bixmiz, and asked if we c=
ould somehow, someway, continue to offer the product going forward.  I have=
 a message into Richard re:  Peggy's message to me...MLC


---------------------- Forwarded by Marianne Castano/HOU/EES on 08/02/2001 =
09:47 AM ---------------------------
From:=09Stacey Bolton/ENRON@enronXgate on 08/01/2001 05:21 PM
To:=09Heather Mathis/HOU/EES@EES, Richard Ring/HOU/EES@EES, Marianne Castan=
o/HOU/EES@EES
cc:=09Michael Terraso/ENRON@enronXgate, Jeffrey Keeler/Corp/Enron@ENRON=20
Subject:=09RE: CA BIZMIX Issues

My suggestions are below.  Thanks Heather for the helpful update.
 -----Original Message-----
From: =09Mathis, Heather =20
Sent:=09Tuesday, July 31, 2001 1:30 PM
To:=09Bolton, Stacey; Ring, Richard; Castano, Marianne
Subject:=09CA BIZMIX Issues

Hello all!

I met with Diann Huddleson today and she clarified some issues for me regar=
ding the DASRing of customers in California.  Unfortunately it wasn't what =
we wanted to hear.

On the easy side of things, all residential customers (PGE, SCE, SDG&E) wer=
e turned back to the utilities starting May 30th (DASRs were submitted and =
they are cycling off now depending upon meter reading cycles, etc.)  These =
customers received a letter letting them know about it.

On the commercial side of things (Diann had no distinctions between small c=
ommercial & large commercial & industrial customers), SDG&E customers have =
been ours all along and have never been DASRed and reDASRed.  In PGE & SCE,=
 IBM behind PGE was also never put through the DASR process and has continu=
ously received our product.  All other PGE & SCE customers were originally =
submitted for DASRing back to the utilities on - January 31!!!!!  That prov=
ides enough issues of its own, but I'll get to that.  PGE did a virtual swi=
tch so as of Jan 31 all these customers became PGE's again, but with SCE, w=
hen a customer was switched depending upon meter reading cycles, etc.  All =
de-DASRed customers were then re-DASRed back to us starting June 21, and Di=
ann indicated that not only all of our old customers were re-DASRed, but ne=
w contracts were being executed and these new customers were also being DAS=
Red to us.  No communication about all of this has been sent to the custome=
rs, but as we discussed, some personal basis notice may have been given to =
our larger customers through the reps.

So - I'm not worried about the residential side - we'll have to send them a=
n annual historical label next April (with perhaps a letter explaining why =
they're still receiving info from us).  As far as the commercial/industrial=
 .......

1.  No notice was provided to probably the majority of the customers. [Bolt=
on, Stacey]  We (or PR) should prepare a customer letter as discussed with =
Peggy, notifying them that they are no longer receiving Bizmix ASAP.
2.  They've been receiving system mix since Feb 1 and we've been proceeding=
 as if it were actually BIZMIX - i.e. the 2nd quarter labels they just rece=
ived indicated BIZMIX, as appropriate to the customer. [Bolton, Stacey]   W=
e should look into purchasing green tags to make these customers whole if w=
e will be more than 5% off of our projection v. what we actually delivered.=
  The regs allow for discrepancies between projections and actual, and you =
don't have to show an extra column w/ the difference if you are w/in 5% del=
ta band between projection and actual..  We can change the projection for t=
hird quarter and include this information in the customer letter.=20
3.  What are the new customers (those as being DASRed to us the first time =
as of June 21) being told they are receiving?  Are they being marketed BIZM=
IX? [Bolton, Stacey]   We should ensure this is not the case with originati=
on.  Someone in Jeremy B.'s shop will most likely know.=20
4.  As far as dates are concerned for reporting purposes, will we just use =
those given as the date of submission (i.e. Jan 31, May 30, June 21) as it =
is impossible to pinpoint when each individual customer transferred? [Bolto=
n, Stacey]   We should discuss this a bit.  I'm not sure that this will rea=
lly matter at the end of the day.  The CEC has instructed us all along to s=
end labels to the customers, which we have.  We'll report the purchases (br=
own and green) as normal at the end of the year.=20

Let me know your input.

Heather














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