Message-ID: <9129193.1075840864637.JavaMail.evans@thyme>
Date: Fri, 5 Oct 2001 17:06:28 -0700 (PDT)
From: jaime.alatorre@enron.com
To: louise.kitchen@enron.com, david.forster@enron.com, steve.irvin@enron.com, 
	jaime.williams@enron.com, carlos.alatorre@enron.com
Subject: Meeting with Energy Secretary Martens
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X-From: Alatorre, Jaime </O=ENRON/OU=NA/CN=RECIPIENTS/CN=JALATORR>
X-To: Kitchen, Louise </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lkitchen>, Forster, David </O=ENRON/OU=NA/CN=RECIPIENTS/CN=DFORSTER>, Irvin, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sirvin>, Williams, Jaime </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jwilli2>, Alatorre, Carlos </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Calator>
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               I had an hour long, fruitful meeting with Energy Secretary Martens last night. He was very supportive of our import
               project for industrials but, I did not convince him on the concept of CFE's bids (i.e. Rio Bravo IV) to be modified,
               so as to call for IPP or PPA's (imported power) indifferently.

               He gave me two solid arguments:

                - CFE (i.e. Mexico) cannot depend on imported power from the US (Texas) on a long term basis (25 years), since
                  there is no formal agreement between both countries that will support it. This is an even stronger argument after
                  the September 11th events, when the US can call for  national emergencies whenever needed. 

                  Secretary Martens shared with me the problems they faced in Baja California during the California energy crisis,
                  when Natural Gas supply was cut out, on three or four occasions, because of a State Government emergency
                  decree (i.e. supply contracts between SDGE and CFE were not honored).

               -  We are very late to request modifications on the Rio Bravo IV bid, which has been postponed for early December.
                  He offered to look into it for 2002 bids, providing the bilateral agreement is in place.
        

              Regarding the import project for industrials, he volunteered his support with TAMSA, AXA, DESC or DeACERO, since
              the concept of importing/trading power in the ERCOT market, is a good story for him to sell.

              Finally, he told me that the transmission cost methodology will be available by the end of this month (he hopes that the
              CRE will load it in its Internet Site).

              Regards,    Jaime  _______  