
Date: Fri, 27 Apr 2001 03:52:00 -0700 (PDT)
From: janine.migden@enron.com
To: jeff.ader@enron.com, mark.bernstein@enron.com, daniel.allegretti@enron.com,
susan.landwehr@enron.com, christi.nicolay@enron.com,
dave.mangskau@enron.com
Subject: Re: AEP - Brainstorming
Cc: adam.cooper@enron.com, charles.decker@enron.com, dave.laipple@enron.com,
edward.baughman@enron.com, greg.sharp@enron.com,
harry.kingerski@enron.com, james.steffes@enron.com,
james.wood@enron.com, john.burrows@enron.com, kerry.stroup@enron.com,
mike.roan@enron.com, nicole.schwartz@enron.com,
richard.shapiro@enron.com
Bcc: adam.cooper@enron.com, charles.decker@enron.com, dave.laipple@enron.com,
edward.baughman@enron.com, greg.sharp@enron.com,
harry.kingerski@enron.com, james.steffes@enron.com,
james.wood@enron.com, john.burrows@enron.com, kerry.stroup@enron.com,
mike.roan@enron.com, nicole.schwartz@enron.com,
richard.shapiro@enron.com

My apologies for inadvertently leaving you off the distribution list.  It was
late when I sent this out...

Additional thoughts that may not have been fully articulated in my first
email and which Mike Roan and I discussed this morning...

To get CSP up to the 20% mark, we could do a preemptive default service deal,
whereby we negotiate to take enough of CSP's customers to get them to the 20%
within a customer class.  The deal could be with commercial or residential
customers.  I don't think we could do much with industrials because the
shopping credit is fairly low.  The shopping credits are as follows:

Residential Non-heat - 5.12
Total Residential - 3.94
Commercial - 5.88, 5.79, 4.06, 3.22 for GS-1, GS-2, GS-3, GS-4 respectively.
Industrial -  3.88, 2.01, 2.71

The customer load by class in CSP's service territory for 2001 as estimated
in AEP's 2000 Longterm Forecast Report is as follows:

Residential - 6,351,000 MWH x 20% = 1,270,000 MWH
Commercial - 6,707,000 MWH x 20% = 1,341,400 MWH
Industrial -        3,241,000 MWH x 20% =    648,000 MWH

The numbers multipled by the 20% switch is the approximation of load that
would have to switch to an alternative supplier to free-up CSP's generation
and get it to market based rates.

Please feel free to provide comments and suggestions.
Janine









