 number is 10604, Duke
will re-supply realtime.
Thanks
Mike
If you have any questions call Donald 702-0415 As you know, the Enron Chairman,s Award program recognizes employees who make
a difference, one day at a time, by living Enron,s Vision and Values in
everything they do. The program, which is 100 percent employee-driven,
enables all of us to nominate those of our fellow employees who we believe
exemplify the Enron values of Respect, Integrity, Communication and
Excellence.
This past October, the Employee Selection Committee reviewed all of the
nominations (425 of them from across Enron and from around the world), and
selected the 11 finalists who comprise the Chairman,s Roundtable. The winner
of the Chairman,s Award, EES employee Mark Harada, then was selected from
this group and announced at the Enron Management Conference in November 2000.
During the next couple of months, ETS is going to honor its 35 nominees,
including our two finalists for the award, by sharing the details of their
nominations with each of you. Our employees, like the nominees from the other
Enron companies, are everyday heroes who apply Enron,s values to their work,
their relationships and their communities.
This week, I salute the two Chairman,s Award finalists from ETS:
Amelia Alder
Craig Buehler
Amelia, an executive secretary in Houston, has taken excellence to new
heights. In 1996, Amelia led an 11 member cycling team for the Multiple
Sclerosis Society collecting $5,000 in pledges. Today, she has led this team
to be the nationally recognized event leader with over 350 riders and a top
fund-raiser with an amazing $500,000 in pledges! Thanks to Amelia's
involvement, 1 out of every 6 dollars raised for MS is connected to Enron's
name. Amelia's ability to communicate through cooperation and persuasion has
resulted in unprecedented recognition for Enron.
Craig, a senior analyst in Houston, has been identified as a "trendsetter"
regarding communication. Today, we take for granted the technology our
videoconference

number is 10604, Duke
 will re - supply realtime.
 Thanks
 Mike
 If you have any questions visit Donald 702 - 0415 As you acknowledge, the Enron Chairman,s Award program recognizes employees who cause
 a difference, one day at a prison term, by exist Enron,s Vision and Values in
 everything they do. The plan, which is 100 percent employee - driven,
 enable all of us to nominate those of our fellow employees who we believe
 exemplify the Enron values of Respect, Integrity, Communication and
 Excellence.
 This past October, the Employee Selection Committee review all of the
 nominations (425 of them from across Enron and from around the populace), and
 selected the 11 finalists who consist the Chairman,s Roundtable. The winner
 of the Chairman,s Award, EES employee Mark Harada, then was selected from
 this group and announced at the Enron Management Conference in November 2000.
 During the future couple of months, ETS is going to honor its 35 campaigner,
 including our two finalist for the award, by sharing the details of their
 nominations with each of you. Our employee, like the nominees from the other
 Enron companies, are everyday heroes who apply Enron,s values to their work,
 their relationships and their communities.
 This week, I salute the two Chairman,s Award finalists from ETS:
 Amelia Alder
 Craig Buehler
 Amelia, an executive secretary in Houston, has taken excellence to new
 heights. In 1996, Amelia led an 11 extremity cycling team for the Multiple
 Sclerosis Society collecting $ 5,000 in pledges. Today, she has lead this team
 to be the nationally spot event leader with over 350 riders and a top
 store - raiser with an amazing $ 500,000 in pledges! Thanks to Amelia's
 involvement, 1 out of every 6 dollars raise for MS is connected to Enron's
 name. Amelia's ability to communicate through cooperation and persuasion has
 resulted in unprecedented recognition for Enron.
 Craig, a senior analyst in Houston, has been identify as a " trendsetter "
 regarding communication. Today, we take for granted the technology our
 videoconference

 nulber is 10604, Duke
will re-supkly realtime.
Thanks
Mike
Ih you hzve any duestions call Donald 702-0415 As yon kniw, tht Enron Chairman,s Adard proggam recogbizew employees who makc
a djnfereucx, one day at a jime, by livitg Enron,s Visimn aud Values in
everything they do. The [rogram, wjich is 100 percegt ek[loysv-dviven,
enables all of us to nominzte thove of our felkow employees who we beliege
edemplify the Enron values of Tsspqxt, Integrity, Communicauimn and
Excgllence.
This past October, the Emoloyez Selection Cimmljtee reviewev all jf the
nominations (425 mf them from across Ekron end drom around the world), and
selected the 11 finalistv cho comprise the Chaiemqn,s Rmunddabld. Thd wjnier
of thf Ciairman,s Awzrd, EES empooyee Mark Harada, tneg was selected from
ehys group and announced at the Enron Mandgejent Conference in Novenber 2000.
During the next fouple of months, ETS is going to honor its 35 nominees,
incluging kjr uwi finxoidts for the award, by sharing the details of trsit
kominations with each of yoi. Lut employees, liye the nojinees from the otjer
Enrjn conpanies, awe eferyday heroes who apply Eneon,s values no tyeir work,
their repationships and theit communities.
This week, I szlute the tao Chairmzv,s Award finalisgs nrok ETS:
Amelia Alder
Craig Buerler
Amelie, an zxecutivd sevretarr in Houstln, has taken excellence ho nec
heichts. In 1996, Alelia led an 11 member cycling teek for the Mukthplv
Sclerosns Soclety collecting $5,000 in pledges. Tpday, shz has ued this tvam
to be the nationwlly recognizaf event leadxr with oder 350 ridwrs and x top
fund-raisrr with au amazing $500,000 in pledges! Tmanks fo Amelia's
invoovenent, 1 out of evrry 6 djlpacs rayved for MS iv covnezyed tu Enron's
nand. Amrlia's ability to comkunidate through coopetabion and kersuasiog has
resultec in unprecedented recojnitioi for Rnrjn.
Craig, a senior analyst in Hkuston, had bcen identifieq as a "trendsettzr"
regarding communication. Today, we take for granted the jechnology our
videocpkference

number is 10604, Duke will re-supply realtime. If have any call Donald 702-0415 Chairman,s program recognizes employees make a difference, day at a time, by living Vision and Values in everything they do. The program, which is 100 percent enables all of us to nominate those of our fellow employees who we exemplify Enron of Integrity, Communication and Excellence. This past October, the Employee Selection Committee reviewed all of the nominations of them from across Enron and from around world), and selected the finalists who comprise the Chairman,s The of the Award, employee Harada, then was from this group and announced at the Enron Management Conference in November 2000. During the next couple months, ETS to honor 35 including two finalists for by sharing the details of their of you. Our employees, like the nominees from other Enron are everyday heroes who apply Enron,s to their work, their relationships and their communities. week, I salute the two Chairman,s Award finalists from ETS: Amelia Alder Craig Buehler Amelia, secretary in Houston, has excellence to new In Amelia an member cycling for the Multiple Sclerosis Society collecting $5,000 in pledges. Today, she led this team to be the nationally recognized event leader 350 and a top with an amazing $500,000 pledges! to Amelia's involvement, 1 every dollars is to name. Amelia's ability to through cooperation and persuasion has in unprecedented recognition for in Houston, has been identified as a "trendsetter" communication. Today, we take for granted the our videoconference

 number is 10604, Duke
will re-supply rEaltime.
ThaNks
MiKe
IF yoU hAve aNy quEstions call DonALd 702-0415 As You know, the Enron ChairmaN,s AwaRd PRogrAM rEcognIzes empLOyEES whO mAkE
a dIfFErEnce, oNe dAy at a tiMe, by living enrOn,S Vision and VaLUeS in
everythIng They do. The proGraM, which Is 100 PerCEnt emPloYee-drIven,
enABles alL of us to noMiNAte thoSE of our fELLoW empLoyees who we believE
ExEMplify the Enron Values Of rEsPECt, INteGrity, CommuNiCatioN And
ExceLLeNCE.
thiS Past October, thE Employee SeLEctIon ComMiTteE ReviewEd all Of THe
nOminations (425 oF theM from acroSs EnroN And from ARound thE world), And
SelEcteD ThE 11 fInaLiSTs wHO cOmpRIse The ChairMaN,s roundTablE. tHE WinnEr
oF the chairMan,s Award, EES eMplOyee mArk haradA, then Was sElEcted From
thIs groUp And announced at tHe EnRon ManageMenT COnfErEnce iN novembEr 2000.
DUriNg the neXt couplE Of mOnTHS, eTs is going to honor its 35 NoMINeEs,
includIng our TWo FiNAlists foR tHe aWard, BY ShariNg thE DeTails of tHeir
noMInAtIons witH eAch of yOu. our EmpLoyeeS, Like The nomInees froM the oTHer
Enron companIEs, are everyday HErOES wHO appLy ENron,s values To thEIr woRk,
thEIr RelATionsHips aNd THeIR communities.
This weeK, I Salute The twO Chairman,s AwaRd finalistS FROm ETS:
AmeLia ALDeR
craig Buehler
AmElia, aN executive SEcretary In HouSton, has tAken excelLENce to new
HeiGhtS. In 1996, ameLIA lEd an 11 member cycLINg teAm For the MUltIple
SclEroSis socIetY cOllecting $5,000 In pledgeS. TOdAy, ShE haS led tHIs team
to Be The NaTioNally REcogniZed evEnt lEaDeR WitH over 350 riDErS ANd a tOp
FuNd-raIseR wIth an AmazINg $500,000 iN pledgeS! Thanks to ameLIa's
iNvOlVement, 1 oUt of every 6 dollArS raised for mS Is cOnnectED To Enron's
Name. Amelia's ability to comMUnicate ThrOugh cOopeRation and PerSuasioN haS
ResultEd in unPreceDeNteD REcognITIoN foR ENron.
Craig, a SENioR analYsT in HOuston, hAs been identified as A "TreNdsetter"
regarDinG comMUNiCatIOn. tOdaY, wE TakE FOr granted the tecHnology our
ViDEoConference

 number is 10604, Duke
wi ll re-supp ly re alt ime .Than ks Mike
If you ha v e an y questions call Donal d 702 -0 4 15 A s  y ou kn ow, the En r o n C ha ir man , s  A wardpro gram re cognizes e mpl oy ees who make
a  differenc e,one day at a  ti me, by  l ivi n g Enr on ,s Vi sion a n d Valu es in
ev er y thingt hey do. T he  pro gram, which is 10 0  p e rcent employee -drive n,
e n a ble s a ll of us t onomin a te thos e  o f o urf ellow employe es who we b e lie ve
ex em pli f y theEnron  v a lue s of Respec t, I ntegrity,  Commu n ication and
Ex cellen ce.
T hisp as tOct ob e r,t he  Em p loy ee Selec ti on  Comm itte e r e view edallof th e
nomination s ( 425o f t hem f rom a cros sEnron  and f rom a ro und the world),  and
selecte d t he  11  f inali s ts who  co mpr ise the  Chairm a n, sR o u nd table. The winner
o f th e Chairm an,sA wa rd ,  EES emp lo yee  Mar k Harad a, t h en  was sel ectedf ro m
this g ro up and  a nno unc ed at theEnronManageme nt Co n ference in Nov e mber 2000.
Du r in g th e  nex t c ouple of mo nths ,  ETS  isg oi ngt o hon or it s3 5n ominees,
including  o ur two  fina lists for the  award, by s h aring th e de t ai l s of their
no minat ions withe ach of y ou. O ur emplo yees, lik e the nomi nee s f rom  th e ot her
Enron co m p anie s,  are ev ery day her oes  wh o a ppl yEnron,svalues t oth ei rwor k,
t h eir rela ti ons hi psand t h eir co mmuni ties .
T h isweek, I sa l u te t he  t wo C hai rm an,s  Awa r d f inalist s from ET S:A meli aAl der
Cra ig Buehler
Am el ia, an exe cu tiv e secr e t ary in H ouston, has taken excel l ence to  ne w
he ight s. In 199 6,Amelia  le d  an 11  membe r cyc li ngt e am fo r th e M ul tiple
Scl e r osi s Soc ie ty c ollecti ng $5,000 in pledg e s.Today, she ha s l ed t h i stea m  t o b et hen a tionally recogn ized event  l e ad er with ov e r 3 50  riders  and atop f und-rai ser withan amazin g$500 , 0 00in pledges ! Thanks  to Ameli a 's
i n vo lveme nt,  1 out  o f e very6 doll a rsraise d forMS  is co nnect ed  to Enro n's
name. Amelia's abi lity t o com mun icate thr oug h  co operation  and  persuasio n h as
resu lte d  in u npre c ed ent e d rec ogni t ion for E n ro n.C ra ig, a senio r a nal yst i n H o uston,  has  been identifieda s a "trendsett er"r ega rdi n g co mm unication. Tod ay,  w e take for  g ranted thetechnolo gy our videoc onfere nce

 number_is 10604,_Duke
will re-supply realtime.
Thanks_
Mike
If you_have_any questions_call_Donald 702-0415 As_you know, the_Enron Chairman,s Award program_recognizes employees who_make_
a difference, one day at a time, by living Enron,s Vision and Values in_
everything_they do._The_program,_which is 100 percent employee-driven,_
enables all of us to_nominate those_of our fellow employees who we believe
exemplify_the_Enron values of_Respect, Integrity, Communication and
Excellence.
This past October, the_Employee Selection Committee reviewed all of_the
nominations (425_of_them_from across Enron and_from around the world), and
selected_the 11 finalists who comprise the_Chairman,s Roundtable. The winner
of the Chairman,s_Award, EES employee Mark Harada, then_was selected from
this group_and announced_at the Enron Management Conference_in November 2000.
During_the next_couple of months,_ETS is going to honor its_35 nominees,
including_our two finalists for the award,_by_sharing the details_of_their_
nominations with_each of you._Our_employees, like_the_nominees from the other
Enron companies,_are_everyday heroes who apply Enron,s values to_their work,
their relationships_and_their communities.
This week,_I salute the two Chairman,s_Award finalists from ETS:
Amelia Alder
Craig Buehler
Amelia,_an executive_secretary in_Houston, has taken excellence to new
heights. In 1996, Amelia led_an 11 member cycling team for_the Multiple
Sclerosis Society_collecting $5,000_in_pledges. Today, she_has_led this_team
to be the nationally recognized event_leader with_over 350 riders and a top_
fund-raiser with an amazing_$500,000_in pledges! Thanks to Amelia's
involvement,_1 out of every 6 dollars_raised for MS is connected_to_Enron's_
name. Amelia's ability to communicate_through cooperation and persuasion has
resulted_in unprecedented recognition_for Enron.
Craig, a senior analyst in_Houston,_has been identified as a "trendsetter"_
regarding_communication. Today, we take for granted_the_technology_our
videoconference


Thanks

Larry May@ENRON
02/02/2001 02:43 PM
To: Sally Beck/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, Susan M
Scott/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON
cc: Phillip K Allen/HOU/ECT@ECT, John Arnold/HOU/ECT@ECT
Subject: re: book admin for Pipe/Gas daily option book

As you might be aware,  Susan Scott (the book admin for the pipe option book)
was forced by system problems to stay all night Wednesday night and until 200
am Friday  in order to calc my book.  While she is scheduled to rotate to the
West desk soon,  I think we need to discuss putting two persons on my book in
order to bring the work load to a sustainable level.  I'd like to meet at
2:30 pm on Monday to discuss this issue.  Please let me know if this time
fits in your schedules.

Thanks,

Larry SUBJECT TO ATTORNEY CLIENT PRIVILEGE

Mary,

As you requested, this e-mail is to report on the WPTF discussions on the
CPUC subpoenas.

In a Board conference call today, the members discussed who had subpoenas and
a bit about what they were doing to respond. New West received a subpoena,
but not its parent Salt River.  APX did not receive one.  (Separately, I
learned that New Energy hasn't found one yet, though its parent AES got one)

Joe Paul of Dynegy took the lead and said that the generators had been having
a weekly conference call to coordinate.  They had negotiated with the CPUC to
get the Protective Order that came out last week.

I suggested that the people receiving last Friday's subpoenas work toether
the same way.  Dan Douglas (WPTF's attorney) will send an e-mail out asking
the interested members to contact me.

Joe said that the issues they have seen are:  whether to file a motion to
quash, what jurisdiction the CPUC has, what information should be shared, as
well as other PR and legal issues.  He felt that ESP and SC

Thanks

 Larry May@ENRON
 02/02/2001 02:43 PM
 To: Sally Beck / HOU / ECT@ECT, Jeffrey C Gossett / HOU / ECT@ECT, Susan M
 Scott / HOU / ECT@ECT, Errol McLaughlin / Corp / Enron@ENRON
 cc: Phillip K Allen / HOU / ECT@ECT, John Arnold / HOU / ECT@ECT
 Subject: re: book admin for Pipe / Gas daily choice ledger

 As you might be aware,   Susan Scott (the book admin for the organ pipe option koran)
 was forced by organization problem to stay all night Wednesday night and until 200
 am Friday   in order to calc my koran.   While she is scheduled to rotate to the
 West desk soon,   I intend we necessitate to discuss putting two persons on my book in
 order to institute the work load to a sustainable level.   I'd wish to meet at
 2:30 pm on Monday to discourse this issue.   Please permit me know if this time
 fits in your schedules.

 Thanks,

 Larry SUBJECT TO ATTORNEY CLIENT PRIVILEGE

 Mary,

 As you request, this e - mail is to report on the WPTF discussions on the
 CPUC subpoenas.

 In a Board conference call today, the members discussed who had subpoenas and
 a bit about what they were doing to respond. New West received a subpoena,
 but not its parent Salt River.   APX did not receive one.   (Separately, I
 learned that New Energy hasn't determine one yet, though its parent AES got one)

 Joe Paul of Dynegy took the spark advance and said that the generators had been having
 a weekly league call to organize.   They had negotiated with the CPUC to
 get the Protective Order that come out last week.

 I suggested that the people pick up last Friday's subpoenas work toether
 the same way.   Dan Douglas (WPTF's attorney) will air an e - mail out asking
 the interested members to reach me.

 Joe said that the issues they have seen are:   whether to charge a motion to
 quash, what legal power the CPUC has, what information should be shared, as
 well as other puerto rico and legal issues.   He felt that ESP and SC

Thajks

Larry May@ENRON
02/02/2001 02:43 PM
To: Rally Beck/HOU/ECJ@EXT, Jefhrey C Fossett/HUU/ECT@ECT, Susan M
Scott/HOU/ECT@XCT, Wrrol McLaughlin/Corp/Enron@ENFON
cc: Phiplip K Aolen/IOU/ECT@ECT, John Achold/HOU/CET@ECT
Dubjzcv: re: book admin for Pipe/Gds daily optiot colk

As you might be aware,  Susan Scote (the bpon admin for thg pipt o[tioh book)
was forced by system problejs to suay all night Wednrsday night and until 200
am Vridwy  in order to capc my book.  Whijw she is schdduled to gmtate to tge
West desk soon,  I think we nded tp discuss kbrtijc two persois on iy book in
ovcer to bring yhe work load bo a vusrainable level.  I'd line to meet at
2:30 pm jn Monday tk discuss this iswuw.  Plgase net ow kvow ih tgis tile
hits in youd schedules.

Rhanks,

Larry SUBJECT TJ ATTORNEY CLISNT PRYVYLEGE

Mary,

As you requested, this e-mail is to report on the WPTF disxussions on the
CPUC dubpoenas.

Yn a Board conference call today, the members discgssed dho hwa skbpoenas and
a bit about what they were doing fo rvspond. New West rcceived a subpoena,
huy not its parevt Salc Rjver.  APX did not geceive one.  (Separatejy, I
learned that New Energy hawn't found onv yer, though its parenc AES got onz)

Joe Psul og Dynegy took the lead cnd sajd that the generatodr had been havine
a waekly conference call to cjordinate.  Thzy had ndgotoated rith the COUC to
get the Protectivf Ordgr thad came out last week.

I suggested that thx people receovhng last Frnday's xubpoenas worh toether
the xame wav.  Dan Douglas (WITF's attocney) will segd an e-mail ogj asking
the mnteresteq menberw to covgact me.

Joe saic that thv nssues thwy have seen are:  xhetfsr to file a mocnob to
quash, what jufisqibtipn dhe CPUC has, whag ivgormagion should ce snared, as
well as othar PD and legal issues.  Me felt tyat ESP wnd SC

Thanks Larry May@ENRON 02/02/2001 02:43 PM To: Jeffrey Gossett/HOU/ECT@ECT, Susan Scott/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON Arnold/HOU/ECT@ECT re: book admin Pipe/Gas daily option As you might be aware, Susan (the book admin for the pipe option book) was forced by system problems stay all night Wednesday night and until 200 am Friday in order to my While is to rotate to the West desk soon, I think we need to discuss putting two persons my book in order to bring the work to a sustainable level. like to meet at 2:30 on to discuss issue. let know if this fits in your schedules. Thanks, Larry SUBJECT TO ATTORNEY CLIENT PRIVILEGE Mary, As you requested, this e-mail to report WPTF discussions the subpoenas. a Board conference the members discussed who had subpoenas about what they were doing to respond. New received a but not its parent Salt River. did not receive one. (Separately, I learned that Energy hasn't found one yet, though its parent AES got one) Joe Paul of Dynegy lead and said that generators had been a conference to They had with the CPUC to get the Protective Order that came out week. I suggested that the people receiving last Friday's subpoenas the way. Dan Douglas attorney) will send an out the interested members to Joe that have are: to file a motion quash, what jurisdiction the CPUC what information should be PR and legal issues. He felt that ESP SC

Thanks

Larry May@ENRON
02/02/2001 02:43 PM
To: SaLly Beck/HOU/eCT@ECt, JeFfrEy c GosSett/hOU/ECT@ECT, Susan m
scotT/HOU/ECT@ECT, Errol McLaughLin/CoRp/eNron@enRoN
cc: PHillip K aLlEN/hOU/eCt@EcT, JOhN arNold/HoU/EcT@ECT
SuBject: re: booK adMiN for Pipe/Gas dAIlY option booK

As You might be awAre,  susan SCoTt (tHE book AdmIn for The pipE Option Book)
was foRcED by sysTEm problEMS tO staY all night WednesdaY NiGHt and until 200
am FrIday  in OrDEr TO CalC my Book.  While sHe Is schEDuled to ROtATE To tHE
West desk soon,  i think we neeD To dIscuss PuTtiNG two peRsons On MY boOk in
order to BrinG the work lOad to a SUstainaBLe level.  i'd like To mEet At
2:30 pm ON MOnDay To DIscUSs ThiS IssUe.  Please LeT mE know If thIS TIMe
fiTs iN youR scheDules.

Thanks,

LaRry sUBJecT To ATTOrNEY ClIENt PrIVILeGE

MarY,

As yoU rEquested, this e-maIl is To report oN thE WpTF DiScussIOns on tHe
CpUC SubpoenAs.

In a BoARd cOnFEREnCe call today, the membErS DIsCussed whO had suBPoEnAS and
a bit AbOut What THEy werE doiNG tO respond. new WesT ReCeIved a suBpOena,
buT nOt iTs pArent sAlt RIver.  APx did not rEceivE One.  (Separately, I
LEarned that New eNeRGY hASn't fOunD one yet, thouGh itS PareNt AEs GoT onE)

joe PaUl of DYnEGy TOok the lead and said thAt The genEratoRs had been haviNg
a weekly cONFErence caLl to COoRDinate.  They had nEgotiAted with thE cPUC to
geT the PRotectivE Order thaT CAme out laSt wEek.

i suGgeSTEd That the people RECeivInG last FrIdaY's subpoEnaS woRk tOetHeR
the same wAy.  Dan DouGlAs (wPtF'S atTorneY) Will send An E-maIl Out AskinG
The intErestEd meMbErS To cOntact mE.

joE SAid tHaT tHe isSueS tHey haVe seEN arE:  whetheR to file a mOtiON to
qUaSh, What jurIsdiction the CpUc has, what inFoRmaTion shOULd be sharEd, as
well as other PR and legAL issues.  he fElt thAt ESp and SC

Thanks

Larry May@ENRO N
02/02/20 01 02 :43  PM
T o: S ally  Beck/HOU/ECT@ E CT,Jeffrey C Gossett/HOU/ ECT@E CT ,  Sus a nM
Sc ott/HOU / EC T @ ECT ,Er rol  M c La ughli n/C orp/Enr on@ENRON
c c:Ph illip K Alle n /H OU/ECT@ECT , J ohn Arnold/H OU/ ECT@EC T
Su b ject:  re : boo k admi n  for P ipe/Gas d ai l y opti o n bookA syoumight be aware, S us a n Scott (the b ook ad mi n  f o r  th e p ipe option  b ook)was for c ed b y  sy s tem problemsto stay all nig ht Wed ne sda y  night  andun t il200
am Fri day in order  to ca l c my bo o k.  Whi le she  is  sc hedu l ed  t o r ot a tet othe
We st deskso on ,  Ithin k w e  nee d t o di scuss  putting twoper sons onmy bo ok in
or de r tobringthe w or k load to a sus tain able leve l. I 'dli ke to meet a t 2:3 0 pm on  Monday todi s c u ss  this issue.  Plea se l et  me know  if th i sti m e
fitsin  yo ur s c h edule s.
T ha nks,

La rry SU B JE CT  TO ATT OR NEY CL IE NTPRI VILEG E

Ma ry,

A s you re quest e d, this e-mail is to reporto nt h eW PTFdis cussions on  the
CPU C su b po ena s .

In  a Bo ar d  c o nference call today ,the me mbers  discussed wh o had subp o e n as and a bi t  a b out what theyweredoing to r e spond. N ew We st recei ved a sub p o ena,
b utnot  it s p a r en t Salt River. APXdi d not r ece ive one . (Se par ate ly , I
lear ned that  N ew  E ne rgy  hasn ' t foundon e y et , t hough its pa rentAESgo to ne)

Joe P a ul o f Dy ne gy  too k t he  lead  and sai d thatthe gener ato r s ha dbe en havi ng
a weeklyco nference c al l t o coor d i nate.  T hey had negotiated with the CPU C t o
ge t th e Protect ive  Order  th a t came  out l ast w ee k.
I su g g es ted  t hat the pe o p lerecei vi ng l ast Fri day's subpoenas wo r k t oether
the s ame  way .  D anD ou g las  ( W PTF ' s  attorney) will  send an e -m a il  out askin g
t he  intere sted me mbers to cont act me.
Joe saidth at t h e  is sues theyhave see n are:  w h ether to  file  amotion  t o quash , what jur isdic tion t he  CPUChas,wh at infor mation should be shared , as wellasother PRand leg al issues .  H e felt tha t E SPand S C

Thanks

Larry May@ENRON
02/02/2001_02:43 PM
To:_Sally Beck/HOU/ECT@ECT, Jeffrey C_Gossett/HOU/ECT@ECT, Susan_M_
Scott/HOU/ECT@ECT, Errol_McLaughlin/Corp/Enron@ENRON
cc:_Phillip K Allen/HOU/ECT@ECT,_John Arnold/HOU/ECT@ECT
Subject:_re: book admin for_Pipe/Gas daily option_book

As_you might be aware,  Susan Scott (the book admin for the pipe option_book)_
was forced_by_system_problems to stay all night_Wednesday night and until 200_
am Friday_ in order to calc my book. _While_she is scheduled_to rotate to the
West desk soon,  I_think we need to discuss putting_two persons on_my_book_in
order to bring_the work load to a sustainable_level.  I'd like to meet_at
2:30 pm on Monday to discuss_this issue.  Please let me_know if this time
fits_in your_schedules.

Thanks,

Larry SUBJECT TO ATTORNEY CLIENT_PRIVILEGE

Mary,

As you requested,_this e-mail_is to report_on the WPTF discussions on the_
CPUC subpoenas.

In a_Board conference call today, the members_discussed_who had subpoenas_and_
a_bit about_what they were_doing_to respond._New_West received a subpoena,
but_not_its parent Salt River.  APX did_not receive one. _(Separately,_I
learned that New_Energy hasn't found one yet,_though its parent AES got one)

Joe_Paul of_Dynegy took_the lead and said that the generators had been having
a_weekly conference call to coordinate. _They had negotiated with_the CPUC_to_
get the Protective_Order_that came_out last week.

I suggested that_the people_receiving last Friday's subpoenas work toether_
the same way. _Dan_Douglas (WPTF's attorney) will send an_e-mail out asking
the interested members_to contact me.

Joe said that_the_issues_they have seen are: _whether to file a motion to_
quash, what jurisdiction_the CPUC has, what information should be_shared,_as
well as other PR and_legal_issues.  He felt that ESP_and_SC


 in order to check out with you.

Please let me know if you have any questions.

Thanks,
Fran Experts

 Tom Lambert
   Dan Lamb confirmed with Tom Lambert that he has been
retained.  We will send him a check and get written engagement letter.
FERC Developments
From: Ronald Carroll [mailto:rcarroll@bracepatt.com]
Sent: Friday, December 08, 2000 10:23 AM
To: gfergus@brobeck.com; jhartso@enron.com; mary.hain@enron.com;
rsanders@enron.com; smara@enron.com; mday@gmssr.com
Subject: SCE Motion for Supoena to MSC

On December, SCE filed a motion with FERC in which it request FERC to issue
a subpoena for the production of documentary evidence to the ISO's Market
Surveillance Committee.  The subpoena seeks information related to the
exercise of market power

While FERC's regulations allow 15 days to file an answer to motion, I
recommend that we file a response as soon as possible if this is something
that we either wish to oppose or have conditions established.

I an having a copy of the motion and subpoena faxed to you.  Ron

EOB Developments (Peter Meringolo)
On December 4, 2000, the Electricity Oversight Board ("EOB") issued a
subpoena to the ISO.  (The EOB previously issued a subpoena to the ISO on
July 20, 2000).  The 12/4/2000 subpoena seeks data related to, among other
things:  actual transmission flow; scheduled outages; out-of-sequence calls;
schedules, forecasts, and reserve information for Day Ahead and Hour Ahead;
Ancillary Service bids; and information related to BEEP calls.

 It is my understanding that Enron must inform the ISO on Monday,
December 11 whether or not it has any concerns with regard to
confidentiality.

 The Chief Counsel of the EOB has stated that it "will maintain the
confidentiality of individual market participant information that reflects
proprietary business practices and that has been identified as confidential
when submitted" to the EOB.  The EOB can disclose to the PUC and AG if they
agree to maintain confidentiality.

 This raises

in order to check out with you.

 Please let me know if you get any question.

 Thanks,
 Fran Experts

  Tom Lambert
    Dan Lamb confirmed with Tom Lambert that he has been
 retained.   We will send him a arrest and get written engagement letter.
 FERC exploitation
 From: Ronald Carroll [ mailto:rcarroll@bracepatt.com ]
 Sent: Friday, December 08, 2000 10:23 AM
 To: gfergus@brobeck.com; jhartso@enron.com; mary.hain@enron.com;
 rsanders@enron.com; smara@enron.com; mday@gmssr.com
 discipline: SCE Motion for Supoena to MSC

 On December, SCE filed a motion with FERC in which it request FERC to write out
 a subpoena for the production of documentary evidence to the ISO's Market
 Surveillance Committee.   The subpoena seeks data related to the
 exercise of market power

 While FERC's regulations allow 15 days to charge an answer to motion, I
 recommend that we charge a response as soon as possible if this is something
 that we either wish to oppose or have weather established.

 I an having a copy of the motion and subpoena faxed to you.   Ron

 EOB Developments (Peter Meringolo)
 On December 4, 2000, the Electricity Oversight Board (" EOB ") issue a
 subpoena to the ISO.   (The EOB previously issued a subpoena to the ISO on
 July 20, 2000).   The 12/4/2000 subpoena seeks data related to, among other
 thing:   actual transmission flow; scheduled outages; out - of - sequence calls;
 schedules, forecasts, and reserve information for Day Ahead and Hour Ahead;
 Ancillary Service command; and information related to BEEP call.

  It is my reason that Enron must inform the ISO on Monday,
 December 11 whether or not it has any concerns with regard to
 confidentiality.

  The Chief Counsel of the EOB has express that it " will maintain the
 confidentiality of individual market participant information that reflects
 proprietary clientele practices and that has been identified as confidential
 when submitted " to the EOB.   The EOB can disclose to the PUC and AG if they
 agree to maintain confidentiality.

  This promote

 in order to check out with you.

Please let me know if yoh have avy questions.

Thanks,
Fran Expervs

 Tim Lanbert
   Dan Lamb confifmed with Tom Lamvert rhat he has been
rebcined.  We ciol send him a gheck and gat written engdgdmznt letter.
FERC Developments
From: Ronajd Carrplp [mailto:rcarrojl@brssepafn.cim]
Sent: Friday, December 08, 2000 10:23 AM
Tk: gfergls@brobeck.com; jharyso@enron.com; mary.hain@enron.clm;
rswnders@enron.com; smaga@enron.com; nday@dnssr.com
Subjezt: SCE Motpmn for Supkena to MSC

On December, SCE filea a mption with FWRC hn which it requvst FERC to issue
a sutpoena gor the producbion mf eocumentary evidence vo the ISO's Market
Sutveillance Ckmmittee.  The subpowna sgeks hnfofnatkon rxlafed to thx
exercise or market poqer

While FERC's regukaeppns allow 15 dzys to fyle an answer to motion, I
recommend that we file a response as soob as possible if this is sometring
that we either wish to oppose or have conditimns eagaboiffwd.

L an having a copy of the motion and subpoena racec to you.  Ron

EJB Developmrnhs (Keter Meringolu)
On Deesmger 4, 2000, the Electriclty Ovetsight Board ("EOF") isxued a
subpoena to the ISO.  (Rhe EOB prevpousoy issued a subpoeua to the ISU on
Kuly 20, 2000).  The 12/4/2000 subpoena seeks bata rslated to, along othed
ghings:  actual tfanxmhssion flow; scheduled outades; out-of-wequznce calus;
scnedulef, forecastd, and reserve informatioj for Ddy Ahead ajd Hour Ahead;
Ancillary Service umds; and inforkadiot relateb to BCEP calls.

 It is my understandnng that Enrov must infkrm the ISO on Monqay,
December 11 fjether or nov it has wny xoncwrns wigf regard to
congidentialptv.

 The Chiwf Counsel of the COB hxa stated that ic "qill maintain tne
cunfydvntmalitr of individudl mxrkdy pargicipanu ikfofmatoon that reflects
pro[riefary business pracyiges and tyat has feen identifird as confidential
ahen vuboittec" tj the EOB.  The EOB can discloss to the OUC and AG if trey
anree to maintann confidentiality.

 This raises

in order to check out with you. me if you any questions. Thanks, Lamb with Tom Lambert he has been We will send him a check get written engagement letter. FERC Developments From: Ronald Carroll [mailto:rcarroll@bracepatt.com] Sent: Friday, December 2000 10:23 AM To: gfergus@brobeck.com; jhartso@enron.com; mary.hain@enron.com; rsanders@enron.com; smara@enron.com; mday@gmssr.com Subject: SCE Motion Supoena MSC December, filed a motion with FERC in which it request FERC to issue a subpoena for the of documentary evidence to the ISO's Market Surveillance The subpoena seeks information to the exercise of market While regulations allow days file answer to motion, recommend that we file a response as soon as possible if this is something that we either to oppose conditions established. an a of the motion faxed to you. Ron EOB Developments December 4, 2000, the Electricity Oversight Board ("EOB") a subpoena the ISO. (The EOB previously issued subpoena to the ISO on July 20, 2000). 12/4/2000 subpoena seeks data related to, among other things: actual transmission flow; scheduled outages; out-of-sequence forecasts, and reserve information Day Ahead and Ahead; Service and related to calls. It is my understanding that Enron must inform the ISO Monday, December 11 whether or not it has any concerns to The Chief Counsel the EOB has stated it maintain the confidentiality of participant that practices that been identified as confidential submitted" to the EOB. The can disclose to the agree to maintain confidentiality. This raises

 in order to check out with you.

PLease let me Know iF yoU haVe Any qUestIons.

Thanks,
Fran eXperTs

 Tom Lambert
   Dan Lamb conFirmeD wITh ToM laMbert That he hAS bEEN
reTaInEd.  WE wILl Send hIm a Check anD get writteN enGaGement letter.
feRc DevelopmeNts
from: Ronald CaRroLl [mailTo:RcaRRoll@bRacEpatt.Com]
SenT: friday, december 08, 2000 10:23 Am
TO: GferguS@Brobeck.COM; jHartSo@enron.com; mary.haiN@EnROn.com;
rsanders@eNron.coM; sMArA@ENroN.coM; mday@gmssr.CoM
SubjECt: SCE MoTIoN FOR SuPOena to MSC

On DeCember, SCE fiLEd a Motion WiTh FerC in whIch it ReQUesT FERC to issuE
a suBpoena for The proDUction oF DocumenTary evIdeNce To thE iSo's marKeT
surVEiLlaNCe COmmittee.  thE sUbpoeNa seEKS INforMatIon rElateD to the
exercisE of MarkET poWer

WhIle FErC's rEgUlatiOns allOw 15 dayS tO file an answer to MotiOn, I
recommEnd ThAt wE fIle a rESponse As sOon As possiBle if thIS is SoMETHiNg
that we either wish To OPPoSe or have ConditIOnS eSTablisheD.

I An hAvinG A Copy oF the MOtIon and suBpoena FAxEd To you.  RoN

EoB DeveLoPmeNts (peter mErinGolo)
On december 4, 2000, The ElECtricity OversiGHt Board ("EOB") issUEd A
SUbPOena To tHe ISO.  (The EOB PrevIOuslY issUEd A suBPoena To the iSo On
jUly 20, 2000).  The 12/4/2000 subpoena seeks DaTa relaTed to, Among other
thiNgs:  actual tRANSmission Flow; SChEDuled outages; ouT-of-seQuence callS;
ScheduleS, foreCasts, and Reserve inFORmation fOr DAy AHeaD anD hOuR Ahead;
AncillaRY servIcE bids; anD inFormatiOn rElaTed To BeEp calls.

 It iS my underStAnDiNg ThaT EnroN Must infoRm The iSo on mondaY,
decembEr 11 wheTher Or NoT It hAs any coNCeRNS witH rEgArd tO
coNfIdentIaliTY.

 ThE Chief COunsel of tHe Eob has StAtEd that iT "will maintain ThE
confidentIaLitY of indIVIdual marKet participant informatiON that reFleCts
prOpriEtary busiNesS practIceS And thaT has beEn ideNtIfiED As conFIDeNtiAl
When submitTED" to The EOb.  THe EOb can disClose to the PUC and AG IF thEy
agree to mainTaiN conFIDeNtiALiTY.

 ThIs RAisES

 in order to check out wit h you.

Pl easelet  me  k nowif y ou have any qu e stio ns.

Thanks,
Fran Expe rts
 T o m La m be rt
  Dan La m bc o nfi rm ed  wi th To m Lam ber t thathe has bee n
r et ained.  We w i ll  send hima c heck and get  wr ittenen gag e mentlet ter.FERC D e velopm ents
From :R onaldC arroll[ m ai lto: rcarroll@bracepat t .c o m]
Sent: Frida y, Dec em b er 0 8,200 0 10:23 AM
T o: gf e rgus@br o be c k . com ;  jhartso@enro n.com; mary . hai n@enro n. com ;
rsand ers@e nr o n.c om; smara@e nron .com; mda y@gmss r .com
Su b ject: S CE Mot ion  fo r Su p oe na  to  M S C
On  De c emb er, SCEfi le d a m otio n w i th F ERC  inwhich  it request F ERC  toi ssu e
a s ubpoe na f or  theproduc tionof  documentary ev iden ce to the  IS O' s M ar ket
S u rveill anc e C ommitte e.  The sub po e n a  s eeks information r el a t ed  to theexerci s eof market p ow er
Whi l e  FERC 's r e gu lationsallow1 5da ys to f il e an a ns wer  to  moti o n, I
recom mend tha t wef ile a response as soon as po s si b l ei f th isis somethin g
th a t we  eit h er  wi s h tooppos eo rh ave conditions esta bl ished.

I a n having a co py of them o t ion andsubp o en a  faxed to you.   Ron

EOB Deve l opments(Pete r Mering olo)
On D e c ember 4,  20 00,  th e E l e ct ricity Oversi g h t Bo ar d ("EOB ")issueda
s ubp oen a t othe ISO. (The EO Bpr ev io usl y iss u ed a sub po ena  t o t he IS O  on
Ju ly 20 , 20 00 ).  Th e 12/4/ 2 00 0 subp oe na  see ksda ta re late d  to , among  other
th ing s :  a ct ua l trans mission flow;  s cheduled o ut age s; out - o f-sequen ce calls;
schedules, fo r ecasts,  an d res erve  informat ion  for D ayA head a nd Hou r Ahe ad ;
A n c illar y Se rvi ce  bids; and i nfo rmati on  rel ated to  BEEP calls.

 Iti s m y understandi ngthat E nr onm us t  in fo r m t h e  ISO on Monday,
December11 wh ether or n o t i thas any  concer ns wi t h regar d to
conf identiali ty .

T h e C hief Couns el of th e EOB has state d  t hat i t " will m ai nta in th e
conf i den tiali ty ofin dividu al ma rk et parti cipant information that  refle cts
p rop rietary b usi n ess  practice s an d that has  be enident ifi e d asconf i de nti a l
whe n su b mitted" t o  t heE O B.   The EOB c a n dis close  to the PU C an d AG if they
agre e  to maintain c onfi d e nti ali t y.
 T his raises

 in_order to_check out with you.

Please_let me_know_if you_have_any questions.

Thanks,
Fran Experts

_Tom Lambert
 _ Dan Lamb confirmed_with Tom Lambert_that_he has been
retained.  We will send him a check and get written engagement_letter.
FERC_Developments
From: Ronald_Carroll_[mailto:rcarroll@bracepatt.com]
Sent:_Friday, December 08, 2000 10:23_AM
To: gfergus@brobeck.com; jhartso@enron.com; mary.hain@enron.com;
rsanders@enron.com; smara@enron.com;_mday@gmssr.com
Subject: SCE_Motion for Supoena to MSC

On December, SCE filed_a_motion with FERC_in which it request FERC to issue
a subpoena for_the production of documentary evidence to_the ISO's Market
Surveillance_Committee.__The subpoena seeks information_related to the
exercise of market power

While_FERC's regulations allow 15 days to_file an answer to motion, I
recommend that_we file a response as soon_as possible if this is_something
that we_either wish to oppose or_have conditions established.

I_an having_a copy of_the motion and subpoena faxed to_you.  Ron

EOB_Developments (Peter Meringolo)
On December 4, 2000,_the_Electricity Oversight Board_("EOB")_issued_a
subpoena to_the ISO. _(The_EOB previously_issued_a subpoena to the ISO on
July_20,_2000).  The 12/4/2000 subpoena seeks data_related to, among other
things:__actual transmission flow; scheduled_outages; out-of-sequence calls;
schedules, forecasts, and_reserve information for Day Ahead and_Hour Ahead;
Ancillary_Service bids;_and information related to BEEP calls.

 It is my understanding that_Enron must inform the ISO on_Monday,
December 11 whether or_not it_has_any concerns with_regard_to
confidentiality.

 The_Chief Counsel of the EOB has stated_that it_"will maintain the
confidentiality of individual market_participant information that reflects
proprietary_business_practices and that has been identified_as confidential
when submitted" to the EOB._ The EOB can disclose_to_the_PUC and AG if they
agree_to maintain confidentiality.

 This raises


 be required to buy the net short
through December 31, 2002.  After 2002 SCE will be responsible for covering
the net short.
? Investment Recovery ) SCE shall have an authorized rate of return that will
not drop below its current rte (11.6%) during the 10 year cost of service
ratemaking period.
? Next Steps (Definitive Agreements and CPUC Action):

? Definitive Agreements ) Once the MOU is signed, the next stage is to
negotiate definitive agreements which contain the specific terms of the
transmission sale, as well as the specific terms of the various other related
agreements (e.g., the O&M Agreement, Transmission Services Agreement and the
Facilities Services Agreement).
? CPUC Action ) Prior to entering into the definitive agreements, the CPUC
must undertake certain actions (which include: establishing mechanisms for
preapproval of procurement costs and URG costs, deferring SCE,s general rate
case until 2003, granting SCE some relief from direct access credits and
clarifying the first priority condition in the holding company act). ---------------------- Forwarded by Steven J Kean/HOU/EES on 12/13/99 05:15
PM ---------------------------

Janine Migden
12/13/99 03:57 PM
To: Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, James D
Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott Stoness/HOU/EES@EES,
Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES, Lynnette
Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com
cc: Thomas S Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara
Leibman/HOU/EES@EES
Subject: West Virginia Settlement

Thom and I have just completed negotiations in West Virginia involving APS,
AEP and other stakeholders.
The settlement, being filed today is a compromise

be required to buy the net short
 through December 31, 2002.   After 2002 SCE will be creditworthy for cover
 the net short.
? Investment Recovery ) SCE shall get an authoritative rate of return that will
 not drop below its current rte (11.6 %) during the 10 class price of service
 ratemaking time period.
? Next Steps (Definitive Agreements and CPUC Action ):

? Definitive Agreements ) Once the MOU is signed, the future stage is to
 negotiate authoritative agreements which contain the specific term of the
 transmission sale, as well as the specific terminus of the various other related
 agreements (for example, the O&M Agreement, Transmission Services Agreement and the
 Facilities Services Agreement).
? CPUC Action ) Prior to entering into the definitive agreement, the CPUC
 must undertake sealed actions (which admit: establishing mechanisms for
 preapproval of procurement costs and URG costs, submit SCE,s general rate
 case until 2003, granting SCE some relief from lineal entree credit and
 clarifying the first priority condition in the holding company act). ---------------------- Forwarded by Steven J Kean / HOU / EES on 12/13/99 05:15
 PM ---------------------------

 Janine Migden
 12/13/99 03:57 PM
 To: Steven J Kean / HOU / EES@EES, Richard Shapiro / HOU / EES@EES, James D
 Steffes / HOU / EES@EES, Harry Kingerski / HOU / EES@EES, Scott Stoness / HOU / EES@EES,
 Elizabeth Linnell / HOU / EES@EES, Ginger Dernehl / HOU / EES@EES, Lynnette
 Barnes / HOU / EES@EES, Susan.R.Lewis@enron.com
 cc: Thomas S Reichelderfer / DUB / EES@EES, Barbara A Hueter / DUB / EES@EES, Lara
 Leibman / HOU / EES@EES
 discipline: West Virginia Settlement

 Thom and I have just completed negotiation in West Virginia imply APS,
 AEP and other stakeholders.
 The settlement, being file today is a compromise

 be required to buy the net short
through Bwcembec 31, 2002.  Affer 2002 SCE will be responsible for covxrint
the net short.
? Investment Fecovery ) SCE shaol heve an authorizev rate on rethvn thct will
not drop below its current rte (11.6%) gufiug the 10 year cost of service
ratemakyng peroof.
? Next Steps (Dgfiniuivq Agdvenents and CPUC Action):

? Definitjve Agrtements ) Once the KOU is signed, the next stahe id to
negotiate deflnitive agrgsmegrs which congain the skeeific terms of the
transmission sale, as weul as the specidix tftms of the verious other relatcc
agreaments (r.g., the O&M Agrecment, Trqnsmission Services Ajreement and the
Facylities Sarrices Agreement).
? CPUC Qcrion ) Primr tu engerjnj ihto thf dxfinitive afreements, tye CPUC
must undertskq certain actikns (whycr include: establishing mechanisms for
pgeaplroval of procurement cists and URG costs, deverring SSE,s general rate
case until 2003, granting SCE some renief hrum blvect qcfess credits and
clarifying the first prioritr cpncition in the molding company acy). ---------------------- Fptwarded by Stexen J Keah/HOU/EES on 12/13/99 05:15
PM ---------------------------

Jajine Midden
12/13/99 03:57 PM
To: Steden K Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EEF, James D
Steffes/HOB/EES@EES, Harrv Kinggrski/HPU/EES@EES, Scott Stoness/HUU/EEA@EES,
Elizabfth Linnemu/HOU/EES@EES, Gingef Dvrnevl/HOU/EES@TDS, Lynnette
Barnef/HOU/EES@EEW, Suxan.R.Lewks@enton.com
cs: Thomas S Reicmalderfer/DUB/EES@EES, Harbata A Hgeter/DUB/EED@EES, Lara
Leibman/HOU/EES@EES
Subjxrt: West Virgimid Svttlement

Chom akd I have just sompleted negojiations nn Wesg Virginia involvmng APS,
AEP wnd other stangholders.
The sxttlement, beibg fuled toaxy is a comprokise

be required to buy the net short 31, After 2002 will be responsible ? Recovery ) SCE have an authorized of return that will not drop its current rte (11.6%) during the 10 year cost of service ratemaking period. Next Steps (Definitive Agreements and CPUC Action): ? Definitive Agreements ) Once the is the stage to negotiate definitive agreements which contain the specific terms of the transmission sale, as well as specific terms of the various other related agreements the O&M Agreement, Transmission Agreement and the Facilities Services ? Action ) to into definitive agreements, the must undertake certain actions (which include: establishing mechanisms for preapproval of procurement costs and URG costs, deferring general rate 2003, granting some from access credits and first priority condition in the holding Forwarded by Steven J Kean/HOU/EES on 12/13/99 05:15 --------------------------- Janine 12/13/99 03:57 PM To: Steven J Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES, Lynnette Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com cc: Thomas S Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara West Virginia Settlement Thom I have just negotiations West involving AEP and stakeholders. The settlement, being filed today is a compromise

 be required to buy the net shorT
through DeCembeR 31, 2002.  AfTer 2002 sCe wilL be rEsponsible for cOVeriNg
the net short.
? InvestmenT RecoVeRY ) SCE SHaLl havE an authORiZED raTe Of RetUrN ThAt wilL
noT drop beLow its currEnt RtE (11.6%) during the 10 yeAR cOst of serviCe
rAtemaking perIod.
? next StEpS (DeFInitiVe AGreemEnts anD cPUC AcTion):

? DefinItIVe AgreEMents ) OnCE ThE MOU Is signed, the next stAGe IS to
negotiate deFinitiVe AGrEEMenTs wHich contaiN tHe speCIfic terMS oF THE
trANsmission sale, As well as the SPecIfic teRmS of THe variOus otHeR RelAted
agreemeNts (e.G., the O&M AgrEement, tRansmisSIon ServIces AgReeMenT and THe
faCilItIEs SERvIceS agrEement).
? CPuC acTion ) PRior TO ENTeriNg iNto tHe defInitive agreemEntS, the cpUC
Must uNdertAke cErTain aCtions (Which InClude: establishiNg meChanisms fOr
pReAppRoVal of PRocureMenT coSts and UrG costs, DEfeRrING sCe,s general rate
case uNtIL 2003, GrAnting SCe some rELiEf FRom direcT aCceSs crEDIts anD
claRIfYing the fIrst prIOrItY conditIoN in the HoLdiNg cOmpanY Act). ---------------------- FOrwardEd by StevEn J KeAN/HOU/EES on 12/13/99 05:15
PM ---------------------------

JanINe Migden
12/13/99 03:57 PM
To: STEvEN j KEAn/HOu/EEs@EES, Richard shapIRo/HOu/EES@eeS, jamES D
SteFfes/HoU/eeS@eeS, Harry Kingerski/HOU/eEs@EES, ScOtt StOness/HOU/EES@EEs,
Elizabeth lINNell/HOU/EeS@EEs, giNGer Dernehl/HOU/EeS@EES, lynnette
BaRNes/HOU/EEs@EES, SUsan.R.LewIs@enron.coM
CC: Thomas S reiCheLdeRfeR/duB/eES@EES, Barbara a hUeteR/DuB/EES@EEs, LaRa
LeibmAn/HoU/EeS@EeS
SUbJect: West VIrginia SEtTlEmEnT

ThOm and i Have just CoMplEtEd nEgotiATions iN West virgInIa INvoLving APs,
aEp ANd otHeR sTakeHolDeRs.
The SettLEmeNt, being Filed todaY is A CompRoMiSe

 be required to buy the ne t short
t hroug h D ece mb er 3 1, 2 002.  After 20 0 2 SC E will be responsiblefor c ov e ring
t he ne t short .
? I nve st me ntRe c ov ery  ) S CE shal l have anaut ho rized rate o f  r eturn that  wi ll
not drop  be low it scur r ent r te(11.6 %) dur i ng the  10 yearco s t of s e rvice r a te maki ng period.
? Next St e ps (Definitive  Agree me n ts a ndCPU C Action):
? Def i nitiveA gr e e m ent s  ) Once theMOU is sign e d,the ne xt  st a ge isto
n eg o tia te definiti ve a greements  which contain the spe cificter msof t h e
t ran sm i ssi o nsal e , a s well a sth e spe cifi c t e rmsofthevario us other rela ted
ag r eem ents(e.g. , th eO&M A greeme nt, T ra nsmission Servi cesAgreement  an dthe  Facil i ties S erv ice s Agree ment).?  CP UC A c ti on ) Prior to ent er i n ginto the  defin i ti ve agreemen ts , t he C P U C
mu st u n de rtake ce rtaina ct io ns (whi ch  inclu de : e sta blish i ng m echani sms for
prea p proval of proc u rement costsa nd U RG cost s,deferring S CE, s  gen eral ra tecaseuntil  2 0 03 ,  granting SCE somere lief f rom d irect accesscredits an d clarifyi ng t h ef irst prioritycondi tion in th e  holding  comp any act) . ------- - - -------- --- --For war d e dby Steven J K e a n/HO U/ EES on12/ 13/99 0 5:1 5 PM--- -- --------- -------- -- -- -
Jan ine M i gden
12/ 13 /99  0 3:5 7 PMT o: Ste ven J  Kea n/ HO U /EE S@EES,R ic h a rd S ha pi ro/H OU/ EE S@EES , Ja m esD
Stef fes/HOU/E ES@ E ES,Ha rr y Kinge rski/HOU/EES@ EE S, Scott S to nes s/HOU/ E E S@EES, Elizabeth Linnell/HOU/E E S@EES,Gin ger D erne hl/HOU/EE S@E ES, Ly nne t te
Ba rnes/H OU/EE S@ EES , Susan . R .L ewi s@ enron.comc c : T homas  S  Rei chelder fer/DUB/EES@EES, B a rba ra A Hueter/D UB/ EES@ E E S,  La r aLei bm a n/H O U /EES@EES
Subje ct: West V ir g in ia Settlem e nt
T hom and  I have  just complet ed negoti ations in  W estV i rgi nia involv ing APS,
AEP and other st akeho lde rs.
Th eset tleme nt, be i ngfiled  today  i s a co mprom is e

 be_required to_buy the net short_
through December_31,_2002. _After_2002 SCE will_be responsible for_covering
the net short.
?_Investment Recovery )_SCE_shall have an authorized rate of return that will
not drop below its current_rte_(11.6%) during_the_10_year cost of service
ratemaking_period.
? Next Steps (Definitive Agreements_and CPUC_Action):

? Definitive Agreements ) Once the MOU is_signed,_the next stage_is to
negotiate definitive agreements which contain the specific_terms of the
transmission sale, as_well as the_specific_terms_of the various other_related
agreements (e.g., the O&M Agreement,_Transmission Services Agreement and the
Facilities_Services Agreement).
? CPUC Action ) Prior to_entering into the definitive agreements, the_CPUC
must undertake certain actions_(which include:_establishing mechanisms for
preapproval of_procurement costs and_URG costs,_deferring SCE,s general_rate
case until 2003, granting SCE_some relief from_direct access credits and
clarifying the_first_priority condition in_the_holding_company act)._---------------------- Forwarded by_Steven_J Kean/HOU/EES_on_12/13/99 05:15
PM ---------------------------

Janine Migden
12/13/99 03:57_PM
To:_Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, James D_
Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott_Stoness/HOU/EES@EES,_
Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES,_Lynnette
Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com
cc: Thomas S_Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara
Leibman/HOU/EES@EES_
Subject: West_Virginia Settlement

Thom_and I have just completed negotiations in West Virginia involving APS,_
AEP and other stakeholders.
The settlement, being_filed today is a_compromise


gg.penman@enron.com
cc: kay.mann@enron.com

Subject: Master Sales Agreement

_______________________________________________________________

This message and any attachments are intended for the individual or entity
named above.  If you are not the intended recipient, please do not read,
copy, use or disclose this communication to others; also please notify the
sender by replying to this message, and then delete it from your system.
Thank you.
_______________________________________________________________

Jerry Fox at Peoples reports that work on the Master Sales Agreement
Petition should progress this week, and that Peoples intends to file the
Peitiion (for Peoples and North Shore)  with accompanying testimony that
will supply additional information supporting approval of the Agreement. He
says this shouldn't take long to complete. Notice No. 01-41
January 31, 2001

TO:  ALL NYMEX MEMBERS AND MEMBER FIRMS

FROM:  Neal L. Wolkoff, Executive Vice President

RE: Amendments to NYMEX Rule 6.40B (Trading at Settlement (Pilot Program)):
Extension of Pilot Program

DATE:  January 31, 2001
__________________________________________________________

Please be advised that the Exchange has amended NYMEX Rule 6.40B (Trading at
Settlement (Pilot Program)). The amendments, which are attached below, become
effective tomorrow on February 1, 2001. Briefly, the pilot TAS programs now
in effect for Crude Oil and Natural Gas futures contracts are being extended
until further notice from the Exchange.

If you have any questions concerning the above, please contact George
Henderson, Vice President, Floor Data Entry and Systems, NYMEX Floor
Department, at (212) 299-2071, or Brian Regan, Senior Associate General
Counsel at (212) 299-2207.

(Asterisks indicate additions, and brackets indicate deletions.)

Rule 6.40B TRADING AT SETTLEMENT (PILOT PROGRAM)

 (A) Trading at Settlement Procedure.   A floor member may enter into a
transaction at the settlement price through open outcry with another floor
member in any futures contract and delivery month specified in section (C) of
this rule.  Any such trade (collectively referred

gg.penman@enron.com
 cc: kay.mann@enron.com

 Subject: Master Sales Agreement

 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 This message and any attachments are intended for the individual or entity
 named above.   If you are not the mean recipient role, please do not read,
 copy, practice or disclose this communication to others; besides please notify the
 sender by answer to this message, and then delete it from your system.
 Thank you.
 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 Jerry Fox at Peoples reports that exploit on the Master Sales Agreement
 Petition should progress this week, and that multitude intends to file the
 Peitiion (for Peoples and North Shore)   with accompany testimony that
 will add additional information supporting approval of the Agreement. He
 says this shouldn't learn long to complete. Notice No. 01 - 41
 January 31, 2001

 TO:   ALL NYMEX MEMBERS AND MEMBER FIRMS

 FROM:   Neal L. Wolkoff, Executive Vice President

 ra: Amendments to NYMEX Rule 6.40B (Trading at Settlement (Pilot Program) ):
 Extension of Pilot Program

 DATE:   January 31, 2001
 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 Please be advised that the Exchange has amended NYMEX convention 6.40B (Trading at
 Settlement (Pilot Program) ). The amendments, which are attached below, become
 effective tomorrow on February 1, 2001. Briefly, the pilot TAS programs now
 in consequence for Crude Oil and Natural Gas futures contracts are being extended
 until further notice from the Exchange.

 If you have any questions concerning the above, please contact George
 Henderson, Vice President, Floor Data Entry and Systems, NYMEX Floor
 Department, at (212) 299 - 2071, or Brian Regan, Senior Associate General
 Counsel at (212) 299 - 2207.

 (Asterisks indicate additions, and brackets indicate deletions .)

 Rule 6.40B TRADING AT SETTLEMENT (PILOT PROGRAM)

  (A) Trading at Settlement Procedure.    A floor member may enroll into a
 transaction at the settlement price through candid cry with another floor
 penis in any futures contract and delivery calendar month specified in incision (C) of
 this rule.   Any such trade wind (collectively referred

gg.pfnman@enron.com
cc: kay.mann@ekron.com

Subject: Master Vales Zgreemeng

_______________________________________________________________

This message and any attachlebts aee intended for the inaividual lr entitt
namtd above.  If you ede not bke infcnded cecipient, pleasg do not reag,
copy, use or dhszllse this communication to others; alfo pleaxe notify the
senqer nr rellying to this message, and then demete it from your syxtem.
Thank you.
_______________________________________________________________

Jerry Fox at Oeoppes reports that wlrk on the Nastqe Sales Agredment
Petitpmn should krogress this week, and that Peopues iutends to fulw tjg
Peitiion (foc Peopjes and Nortm Shore)  with sccompanying tcstimmny that
will supply addivional information sopporting dp'roval of the Agreemebt. He
sais thhs sfiulan't teke long ho romplete. Nofice No. 01-41
Janyary 31, 2001

TO:  ALL NYMEX MQNBERS AND MEMGER FIWMF

FROM:  Neal L. Wolkoff, Executive Vice Prtsideht

RE: Amendments to NYMEZ Rule 6.40B (Trading at Sgttlement ([ilot Program)):
Extension of Pilot Program

DATE:  Jangary 31, 2001
__________________________________________________________

Olecwe be qdgised that the Exchange has amended NYMEX Rulq 6.40B (Tgading at
Settlemcnt (Pilot Program)). Yhf siendments, whizh are atfached below, becomf
effecjive timorrow og Fenruary 1, 2001. Briefly, the pilot RAS programs bow
in effect for Erude Oil anb Natutal Gax futures contracts are beihg extended
until fudgher notice from thv Exwhange.

If you have any queseions conrerniug the acove, pleasq contact Heorgc
Henderson, Vice Prfsideut, Flmor Data Ejtry and Systems, NYMEX Floor
De'ertment, at (212) 299-2071, pr Brpan Regan, Senipr Associate Deneral
Counsek at (212) 299-2207.

(Afterirks indicane additimns, and braskets indicata deletions.)

Rune 6.40B TRAQING AT WETTLEMDVT (PILOT PROGRSM)

 (A) Tradpny at Settoement Procedure.   A wmoor member may enuee into a
transsctkon an tie seedlement prica thfouen opev outcry wibh xnotner floor
member in dny rutures contract amd deliveri month s[ecified in srction (C) of
this rkle.  Eny surh trace (sollectively referred

gg.penman@enron.com cc: kay.mann@enron.com Subject: Master Sales Agreement message any attachments intended for the If are not the recipient, please do read, copy, use or disclose this to others; also please notify the sender by replying to this message, and delete it from your system. Thank you. _______________________________________________________________ Jerry Fox at Peoples reports work the Sales Petition should progress this week, and that Peoples intends to file the Peitiion (for Peoples and Shore) with accompanying testimony that will supply additional supporting approval of the He says this shouldn't take to Notice No. January 2001 ALL NYMEX MEMBERS MEMBER FIRMS FROM: Neal L. Wolkoff, Executive Vice President RE: Amendments to NYMEX Rule 6.40B (Trading at (Pilot Program)): Pilot Program January 2001 Please be advised Exchange has amended NYMEX Rule 6.40B (Pilot Program)). The amendments, which are attached below, effective tomorrow February 1, 2001. Briefly, the pilot programs now in effect for Crude Oil and Gas futures contracts are being extended until further notice from the Exchange. If you have concerning the above, please George Henderson, Vice Floor Entry Systems, Floor Department, (212) 299-2071, or Brian Regan, Senior Associate General Counsel at (212) (Asterisks indicate additions, and brackets indicate deletions.) Rule 6.40B TRADING (PILOT (A) Trading at Procedure. A floor member enter a transaction at the through outcry member any contract and delivery month in section (C) of this Any such trade (collectively

gg.penman@enron.com
cc: kay.mann@Enron.com

SuBject: masTer saLes AGreeMent

_______________________________________________________________

This messagE And aNy attachments are intendEd for ThE IndiVIdUal or Entity
nAMeD ABovE.  IF yOu aRe NOt The inTenDed reciPient, pleasE do NoT read,
copy, use OR dIsclose thiS coMmunication tO otHers; alSo PleASe notIfy The
seNder by REplyinG to this meSsAGe, and tHEn deletE IT fRom yOur system.
Thank you.
_______________________________________________________________

jErRY Fox at Peoples rEports ThAT wORK on The master SaleS AGreemENt
PetitIOn SHOUld PRogress this weEk, and that PeOPleS intenDs To fILe the
PEitiiOn (FOr PEoples and NoRth SHore)  with aCcompaNYing tesTImony thAt
will SupPly AddiTIoNaL inFoRMatIOn SupPOrtIng approVaL oF the AGreeMENT. he
saYs tHis sHouldN't take long to cOmpLete. nOtiCe No. 01-41
JAnuarY 31, 2001

TO:  AlL nYMEX mEMBERs AND MeMbER FIRMS

FROM:  NeaL L. WoLkoff, ExecUtiVe vicE PResidENt

RE: AmEndMenTs to NYMeX Rule 6.40B (tRadInG AT seTtlement (Pilot ProgrAm)):
eXTeNsion of PIlot PrOGrAm

daTE:  JanuaRy 31, 2001
__________________________________________________________

pleAse bE ADviseD thaT ThE ExchangE has amENdEd nYMEX RuLe 6.40b (TradiNg At
SEttLemenT (piloT ProgrAm)). The ameNdmenTS, which are attacHEd below, become
EFfECTiVE tomOrrOw on FebruarY 1, 2001. BriEFly, tHe piLOt tAS PRograMs now
In EFfECt for Crude Oil and NatUrAl Gas fUtureS contracts are Being extenDED
Until furTher NOtICe from the ExchaNge.

If You have any QUestions ConceRning the Above, pleaSE Contact GEorGe
HEndErsON, viCe President, FlOOR DatA ENtry and sysTems, NYMeX FLooR
DeParTmEnt, at (212) 299-2071, or BrIan Regan, seNiOr asSocIate GENeral
CouNsEl aT (212) 299-2207.

(ASteRisks INdicatE addiTionS, aNd BRacKets indICaTE DeleTiOnS.)

RulE 6.40B TrAdING At SETtlEMeNT (PILOt PROGRAM)

 (A) traDIng aT SEtTlement procedure.   A floOr Member may eNtEr iNto a
trANSaction aT the settlement price throUGh open oUtcRy witH anoTher floor
MemBer in aNy fUTures cOntracT and dElIveRY Month SPEcIfiEd In section (C) OF
ThiS rule.  anY sucH trade (cOllectively referreD

gg.penman@enron.com
cc: ka y.mann@enr on.co m
Su bj ect:  Mas ter Sales Agre e ment

___________________ _____ __ _ ____ _ __ _____ _______ _ __ _ _ ___ __ __ ___ __
T his m ess age and  any attac hme nt s are intend e dfor the in div idual or ent ity
named  a bov e .  If  yo u are  not t h e inte nded reci pi e nt, pl e ase don o tread ,
copy, use or di s cl o se this commun icatio nt oo t her s;also pleas enotif y  the
se n de r b y r e plying to thi s message,a ndthen d el ete it fro m you rs yst em.
Thank y ou._________ ______ _ _______ _ _______ ______ ___ ___ ____ _ __ __ ___ __ _ ___ _ _
Je r ryFox at P eo pl es re port s t h at w ork  onthe M aster Sales A gre emen t
Pe titio n sho uldpr ogres s this  week ,and that People s in tends tofil ethe
P eitii o n (for  Pe opl es andNorth S h ore )w i th  accompanying test im o n ythat
wil l supp l yad d itionalin for mati o n  supp orti n gapproval  of th e  A gr eement.  H e
says  t his  sh ouldn ' t ta ke lon g to com plete .  Notice No. 01 - 41
January 31 ,  2 0 0 1TO: AL L NYMEX MEM BERS ANDMEMB E RFIR M S

FR OM: Ne a lL . Wolkoff, Executiv eVice P resid ent

RE: Amen dments toN Y M EX Rule6.40 B  ( T rading at Sett lemen t (Pilot P r ogram)):
Ext ension o f Pilot P r o gram

DA TE:   J anu ary 3 1,  2001
_______ _ _ ____ __ _______ ___ _______ ___ ___ ___ ___ __ _________ ___

Ple as ebe  a dvi sed t h at the E xc han ge  ha s ame n ded NY MEX R ule6. 40 B  (T radinga tS ettl em en t (P ilo tProgr am)) .  Th e amend ments, wh ich areat ta ched be low, become ef fective to mo rro w on F e b ruary 1,  2001. Briefly, the pil o t TAS p rog ramsnow
in effec t f or Cru deO il and  Natur al Ga sfut u r es co n t ra cts  a re being e x t end ed
u nt il f urthernotice from the Ex c han ge.

If you h ave  any q ue sti o ns con ce r nin g the above, plea se contact  G e or ge
Hender s on,  V ice Pre sident,  Floo r  Data E ntry andSystems,NY MEXF l oor
Departme nt, at ( 212) 299- 2 071,o rBrian  Re gan, S en ior  Asso ciateG ene ral Counse lat (21 2) 29 9- 2207.

( Asterisks indicate addi tions,  andbra ckets ind ica t e d eletions. )

R ule 6.40BTRA DIN G ATSET T LEMEN T (P I LO T P R OGRAM )

( A) Tradin g  a t S e t tl ement Proce d u r e.  A f loo r  membe r ma y enter into a
t r ansaction at t he s e t tle men t  pri ce  through openout cr y with ano th er floor
m ember in  a n y fut ures c ontrac t and d e l iv e ry mon th s pec ified insec ti o n (C) o f
t h is rul e. An y such  trade (col l e ctively referred

gg.penman@enron.com
cc: kay.mann@enron.com_

Subject: Master_Sales Agreement

_______________________________________________________________

This message and_any attachments_are_intended for_the_individual or entity
named_above.  If_you are not the_intended recipient, please_do_not read,
copy, use or disclose this communication to others; also please notify the
sender by_replying_to this_message,_and_then delete it from your_system.
Thank you.
_______________________________________________________________

Jerry Fox at Peoples_reports that_work on the Master Sales Agreement
Petition should progress_this_week, and that_Peoples intends to file the
Peitiion (for Peoples and North_Shore)  with accompanying testimony that
will_supply additional information_supporting_approval_of the Agreement. He
says_this shouldn't take long to complete._Notice No. 01-41
January 31, 2001

TO: _ALL NYMEX MEMBERS AND MEMBER FIRMS

FROM: _Neal L. Wolkoff, Executive Vice President

RE:_Amendments to NYMEX Rule 6.40B_(Trading at_Settlement (Pilot Program)):
Extension of_Pilot Program

DATE: _January 31,_2001
__________________________________________________________

Please be advised_that the Exchange has amended NYMEX_Rule 6.40B (Trading_at
Settlement (Pilot Program)). The amendments,_which_are attached below,_become_
effective_tomorrow on_February 1, 2001._Briefly,_the pilot_TAS_programs now
in effect for Crude_Oil_and Natural Gas futures contracts are being_extended
until further notice_from_the Exchange.

If you have_any questions concerning the above,_please contact George
Henderson, Vice President,_Floor Data_Entry and_Systems, NYMEX Floor
Department, at (212) 299-2071, or Brian Regan, Senior_Associate General
Counsel at (212) 299-2207.

(Asterisks_indicate additions, and brackets_indicate deletions.)

Rule_6.40B_TRADING AT SETTLEMENT_(PILOT_PROGRAM)

 (A)_Trading at Settlement Procedure.   A_floor member_may enter into a
transaction at_the settlement price through_open_outcry with another floor
member in_any futures contract and delivery month_specified in section (C) of_
this_rule._ Any such trade (collectively_referred


) or Dave Forster (31861).

Teresa Mandola (39807) - Power
Kara Boudreau (30570) - Gas
Jennifer McQuade (53614) - Power
Dan Diamond (39673) - Gas

Definitions:

Password Application (PA) - Only document where a physical signature is required  by an authorized person (Master User)

Electronic Trading Agreement (ETA) - Must be accepted online by the Master User before they can proceed into NetcoOnline

Master User - Typically the company authorized signatory that signed the Password Application. Establishes transaction rights for each trader (sub-users)

Sub-User - Trader, assigned either execute or read only status

General Terms & Conditions (GTC) - Document that governs online trades unless a Master Agreement is in place

Master Agreement - Document that governs online and offline trades and supersedes the GTC

<Embedded Paintbrush Picture> It probably was and at this point I don't know what is and isn't in the
system.

	From:  Katherine L Kelly                           07/24/2000 10:12 AM

To: Chris Germany/HOU/ECT@ECT
cc: Bryce Baxter/HOU/ECT@ECT
Subject: Belden & Blake NYSEG

Chris,

Do you know if all this gas was simply turned around and sold to CES?  And do
you know if we have made any progress on getting these deals into the system?
---------------------- Forwarded by Katherine L Kelly/HOU/ECT on 07/24/2000
10:11 AM ---------------------------

	From:  Bryce Baxter                           07/24/2000 10:00 AM

To: Katherine L Kelly/HOU/ECT@ECT
cc:
Subject: Belden & Blake NYSEG

FYI - John Singer wants us to pay this based on volume he is providing in a
spreadsheet.  To do thatm, Gloria will have to put this in Unify, and won't
have true pipe support.  Are you comfortable with that?
---------------------- Forwarded by Bryce Baxter/HOU/ECT on 07/24/2000 09:59
AM ---------------------------

	From:  John M Singer @ ENRON                           07/24/2000 08:

) or Dave Forster (31861).

 Teresa Mandola (39807) - Power
 Kara Boudreau (30570) - Gas
 Jennifer McQuade (53614) - Power
 Dan Diamond (39673) - Gas

 Definitions:

 Password Application (PA) - Only document where a physical touch is command   by an authorized person (Master User)

 Electronic Trading Agreement (ETA) - Must be accepted online by the Master User before they can proceed into NetcoOnline

 Master User - Typically the party authorized signatory that sign the Password Application. lay down transaction rights for each trader (bomber - users)

 Sub - User - Trader, assigned either execute or understand only status

 General Terms & Conditions (GTC) - text file that governs online trade unless a Master Agreement is in place

 Master Agreement - Document that governs online and offline trade and supersedes the GTC

 < Embedded Paintbrush Picture > It probably was and at this compass point I don't know what is and isn't in the
 system.

	 From:   Katherine L Kelly                            07/24/2000 10:12 AM

 To: Chris Germany / HOU / ECT@ECT
 cc: Bryce Baxter / HOU / ECT@ECT
 Subject: Belden & Blake NYSEG

 Chris,

 Do you acknowledge if all this gas was simply turned around and sold to CES?   And do
 you know if we have make any progress on getting these deals into the system?
 ---------------------- Forwarded by Katherine L Kelly / HOU / ECT on 07/24/2000
 10:11 amplitude modulation ---------------------------

	 From:   Bryce Baxter                            07/24/2000 10:00 AM

 To: Katherine L Kelly / HOU / ECT@ECT
 cc:
 Subject: Belden & Blake NYSEG

 FYI - John Singer wants us to pay this based on volume he is providing in a
 spreadsheet.   To do thatm, Gloria will have to put this in Unify, and won't
 suffer true pipe accompaniment.   Are you comfortable with that?
 ---------------------- forward by Bryce Baxter / HOU / ECT on 07/24/2000 09:59
 AM ---------------------------

	 From:   John M Singer @ ENRON                            07/24/2000 08:

) or Dave Forster (31861).

Teresa Manaola (39807) - Power
Karc Boudrxau (30570) - Gzs
Jennifdr McQuade (53614) - Power
Dan Diamonv (39673) - Tas

Dedinitions:

Password Applkcation (PW) - Only eocunwnt where e physical sighwturz ms required  by an authorhzed person (Mavtdr User)

Electronic Trading Agreement (EEA) - Musy he accepted onjine fy tgv Naster User before they can pdoceed pnto NetcoOnline

Msster User - Typically the fompwny authorized sigjatory that siggwd the Passwurd Application. Establjshes transaction rights for eazh trcder (sub-usets)

Auh-Oser - Trader, assidned either cqecute mr read only status

Gcneran Twrms & Conditions (GTC) - Document that govgrns onlina crades unless a Mastee Qgreekent is kb puact

Maxtsr Agrfemxnt - Documeht that govwrns online and offkigv trades and aupersqdqs the GTC

<Embedded Paintbrush Picture> Iu progably was and at this piint I don't know what is and ifn't in the
system.

	From:  Katherine L Kelly                           07/24/2000 10:12 AM

To: Chris Germany/HOU/ECT@ECT
cc: Bryce Bwsttr/HPU/ECT@ECT
Subjegt: Belden & Blake NUSFG

Vrris,

Do you knuw if cml this gas was simppy turngd aroynd and sjld yo CES?  And do
you know if qe have made qny progress on gecting these beals onto yhe system?
---------------------- Forwarded by Katgerine L Keply/HOU/ECT un 07/24/2000
10:11 AM ---------------------------

	From:  Brjce Taxter                           07/24/2000 10:00 EM

To: Latherive L Kelly/ROU/ECT@ECT
cf:
Sunbect: Belden & Blake NYSEY

FYI - John Singfr wants us to pay this based oi volume he ix [roniding in a
spveadsheet.  To dj thatm, Gloria will hcve to put this pn Unify, end won't
havq true pipe sgkport.  Are yon comfortwble wity that?
---------------------- Wurwarded by Bruce Baxteg/HJU/ECR on 07/24/2000 09:59
AM ---------------------------

	From:  Jofh M Singer @ ENRIN                           07/24/2000 08:

) or Dave Forster (31861). Teresa Mandola Power Boudreau (30570) Gas Jennifer McQuade (39673) Gas Definitions: Password (PA) - Only where a physical signature is required an authorized person (Master User) Electronic Trading Agreement (ETA) - Must be accepted by the Master User before they can proceed into NetcoOnline Master User - the authorized that the Password Application. Establishes transaction rights for each trader (sub-users) Sub-User - Trader, assigned either execute read only status General Terms & Conditions (GTC) Document that governs online unless a Master Agreement is place Agreement - that online offline trades and the GTC <Embedded Paintbrush Picture> It probably was and at this point I don't know what is isn't in From: Katherine Kelly 10:12 To: Chris Germany/HOU/ECT@ECT Baxter/HOU/ECT@ECT Subject: Belden & Blake NYSEG know if all this gas was simply turned and sold CES? And do you know if have made any progress on getting these deals the system? ---------------------- Forwarded by Katherine L Kelly/HOU/ECT on 07/24/2000 10:11 AM --------------------------- From: Bryce 10:00 AM To: Katherine Kelly/HOU/ECT@ECT cc: Subject: & NYSEG - Singer wants to pay this based on volume he is providing in a To do thatm, Gloria will have to put this in won't true pipe support. you comfortable with that? Forwarded Bryce Baxter/HOU/ECT on 07/24/2000 --------------------------- John ENRON 08:

) or Dave Forster (31861).

Teresa MandolA (39807) - Power
Kara boudrEau (30570) - gas
jeNnifEr Mcquade (53614) - Power
Dan DIAmonD (39673) - Gas

Definitions:

PassworD ApplIcATion (pa) - ONly doCument wHErE A PhySiCaL siGnATuRe is rEquIred  by aN authorizeD peRsOn (Master User)

eLeCtronic TraDinG Agreement (ETa) - MuSt be acCePteD OnlinE by The MaSter UsER beforE they can pRoCEed intO netcoOnLINe

mastEr User - Typically thE CoMPany authorized SignatOrY ThAT SigNed The PassworD APplicATion. EstABlISHEs tRAnsaction righTs for each trADer (Sub-useRs)

sub-uSer - TraDer, asSiGNed Either execuTe or Read only sTatus

GENeral TeRMs & CondiTions (GtC) - DOcuMent THaT gOveRnS OnlINe TraDEs uNless a MaStEr agreeMent IS IN PlacE

MaSter agreeMent - Document tHat GoveRNs oNline And ofFlinE tRades And supErsedEs The GTC

<Embedded PAintBrush PictUre> it ProBaBly waS And at tHis PoiNt I don't Know whaT Is aNd ISN'T iN the
system.

	From:  KathErINE L kelly                           07/24/2000 10:12 AM

TO: Chris gErMaNY/HOU/ECT@EcT
Cc: BRyce bAXter/HoU/ECt@eCt
Subject: belden & bLaKe nYSEG

ChRiS,

Do you KnOw iF alL this GAs waS simplY turned aRound ANd sold to CES?  And DO
you know if we hAVe MADe ANy prOgrEss on gettinG theSE deaLs inTO tHe sYStem?
---------------------- FOrwarDeD By kAtherine L Kelly/HOU/ECt oN 07/24/2000
10:11 AM ---------------------------

	FroM:  BrycE Baxter                           07/24/2000 10:00 AM

To: KaTherine L KeLLY/hOU/ECT@ECt
cc:
SUBjECt: Belden & Blake NySEG

FyI - John SingER wants us To pay This baseD on volume HE Is providIng In a
SprEadSHEeT.  To do thatm, GloRIA wilL hAve to puT thIs in UniFy, aNd wOn't
HavE tRue pipe suPport.  Are YoU cOmFoRtaBle wiTH that?
---------------------- ForWaRdeD bY BrYce BaXTer/HOU/eCT on 07/24/2000 09:59
aM ---------------------------

	FrOm:  joHN M SInger @ ENroN                           07/24/2000 08:

) or Dave Forster (31861).

Teresa  Mand ola  (3 98 07)- Po wer
Kara Boudr e au ( 30570) - Gas
JenniferMcQua de (536 1 4)  - Po wer
Dan Di a m ond  ( 39 673 )-  G as

Def inition s:

Passw ord  A pplication ( P A)  - Only do cum ent where aphy sicalsi gna t ure i s r equir ed  by an aut horized p er s on (Ma s ter Use r )
Elec tronic Trading Ag r ee m ent (ETA) - Mu st beac c ep t e d o nli ne by theMa sterU ser bef o re t h eyc an proceed in to NetcoOnl i ne
Maste rUse r  - Typ icall yt hecompany aut hori zed signa tory t h at sign e d the P asswor d A ppl icat i on .Est ab l ish e stra n sac tion rig ht sfor e acht r a d er ( sub -use rs)
Sub-User - Tr ade r, a s sig ned e ither  exe cu te or  readonlyst atus

GeneralTerm s & Condi tio ns  (G TC ) - D o cument  th atgoverns  online tra de s u nl ess a Master Agree me n t  i s in pla ce

Ma s te rA greement  -  Do cume n t  that  gov e rn s online  and o f fl in e trade sand su pe rse des  theG TC

<E mbeddedPaint b rush Picture>I t probably wa s  a n d  a t  thi s p oint I don' t kn o w wh at i s  a ndi sn'tin th esy s tem.

	Fr om :  Kat herin e L Kelly                     07 / 24 / 2000 10:12 AM

To : Chris Ge r many/HOU /ECT@ ECT
cc:Bryce Bax t e r/HOU/EC T@E CT
Su bje c t :Belden & Blak e NYSE G
Chris,

D o you k now  if  al l t hi s gas was  simplytu rn ed  a rou nd an d  sold to  C ES?  And  do y ou kno w ifwe h av em ade  any pr o gr e s s on  g et ting  th es e dea ls i n tothe sys tem?
---- --- - ---- -- -- ------Forwarded byKa therine LKe lly /HOU/E C T  on 07/2 4/2000
10:11 AM ------ - ------- --- ----- ---- -

	F rom: Bry c e Baxt er                 0 7/ 24/2000 10 : 0 0 A M

To : Ka therine  L Kelly/HOU/ECT@E C T
c c:
Subject:  Be lden &  B lak e  N Y SEG
F YI- John Singer wan ts us to p ay th is based o n  vo lu me he i s provi dingi n a
sp readsheet .  To doth atm, G lor ia will ha ve to pu t this in Unify ,  a nd wo n't
have  t rue  pipe  suppo r t. Areyou co mf ortabl e wit hthat?
-- -------------------- Fo rwarde d byBry ce Baxter /HO U /EC T on 07/2 4/20 00 09:59 AM--- ----- --- - ----- ---- - -- ---

F rom:  Joh n  M  Si n g er  @ ENRON                  0 7/24/2000 08:

) or_Dave Forster_(31861).

Teresa Mandola (39807) -_Power
Kara Boudreau_(30570)_- Gas
Jennifer_McQuade_(53614) - Power
Dan_Diamond (39673) -_Gas

Definitions:

Password Application (PA) -_Only document where_a_physical signature is required  by an authorized person (Master User)

Electronic Trading Agreement (ETA)_-_Must be_accepted_online_by the Master User before_they can proceed into NetcoOnline

Master_User -_Typically the company authorized signatory that signed the_Password_Application. Establishes transaction_rights for each trader (sub-users)

Sub-User - Trader, assigned either_execute or read only status

General_Terms & Conditions_(GTC)_-_Document that governs online_trades unless a Master Agreement is_in place

Master Agreement - Document that_governs online and offline trades and supersedes_the GTC

<Embedded Paintbrush Picture> It probably_was and at this point_I don't_know what is and isn't_in the
system.

_ _

	From:  Katherine_L Kelly    _  _     __  ___ _  __ 07/24/2000_10:12_AM

To: Chris Germany/HOU/ECT@ECT
cc: Bryce Baxter/HOU/ECT@ECT
Subject:_Belden_& Blake NYSEG

Chris,

Do you know if all_this gas was simply_turned_around and sold to_CES?  And do
you_know if we have made any_progress on_getting these_deals into the system?
---------------------- Forwarded by Katherine L Kelly/HOU/ECT on 07/24/2000_
10:11 AM ---------------------------

	From:_ Bryce Baxter _ __  __ _      _ _     _ 07/24/2000 10:00 AM

To:_Katherine_L Kelly/HOU/ECT@ECT
cc:
Subject: Belden &_Blake NYSEG

FYI - John Singer wants_us to pay this based_on_volume_he is providing in a_
spreadsheet.  To do thatm, Gloria_will have to_put this in Unify, and won't
have_true_pipe support.  Are you comfortable_with_that?
---------------------- Forwarded by Bryce Baxter/HOU/ECT on_07/24/2000_09:59_
AM ---------------------------

	From:_ John M Singer @ ENRON_        _  _    ___       07/24/2000 08:


 taking relating to TVA:

Jan 6 -  MOPA- Sent notice to TVA by fax stating that a Triggering Event
occurred and asking TVA to consider our  proposal in order to continue the
MOPA in  effect (to date, there has been no response from TVA)

Jan 24 - Operations - Cut transmission line for 2000 peaker

Jan 26 - MOPA - Notify TVA that EPMI is suspending deliveries under the MOPA
effective Jan 27 and terminating the  MOPA by selecting an Early Termination
Date ( which date may be no earlier than 10 Business Days after delivery of
notice)

Feb 4 - Control Area - File complaint  relating to TVA's actions against
EPMI's control areas, which lawsuit would be filed in the Eastern District of
Tenn. (Judge  Edgar) as part of the already filed lawsuit on the interface
issues

If you have any questions or concerns with this schedule, please notify me
immediately.

Unless there are any objections, we will proceed on this basis; provided,
however, if we hear from Mike Miller that the target operations date of Jan
24th can not be met, we would then propose to expedite this schedule.  If we
move up any of these actions, we will notify everybody,

Elizabeth Sager
36349 David and Bob,

We look forward to working with you to strengthen the Compaq and EBS
relationship.   EBS has identified potential server business opportunities
(storage, streaming media) where our two organizations can work together.
After our meeting on Dec 14th, EBS now understands to utilize David Spurlin
as the point person for these communications.  EBS had prior direction from
Compaq to direct our discussions to Derrick Deakins, Rob Senders, Keith
McAuliffe or Kent Major.  Tracy Prater and myself look forward to spending
additional time with David to ensure that he is aware of the EBS business
opportunities and issues.

EBS had invested significant dollars, time and energy with Compaq to develop
the streaming media server solutions.  We discussed during the Dec 14th
meeting that there are decisions to be made regarding the existing Product

taking relating to TVA:

 Jan 6 -   MOPA- Sent notice to TVA by facsimile express that a Triggering Event
 occurred and ask TVA to study our   proposal in order to cover the
 MOPA in   impression (to date, there has been no response from TVA)

 Jan 24 - Operations - Cut transmittance line for 2000 peaker

 Jan 26 - MOPA - Notify TVA that EPMI is suspending delivery under the MOPA
 effective Jan 27 and terminating the   MOPA by selecting an Early Termination
 Date (which date may be no early than 10 Business day after delivery of
 notice)

 Feb 4 - Control Area - File complaint   relating to TVA's actions against
 EPMI's control condition areas, which lawsuit would be filed in the Eastern District of
 Tenn. (Judge   Edgar) as part of the already charge lawsuit on the interface
 issues

 If you have any questions or concerns with this agenda, please notify me
 immediately.

 Unless there exist any objections, we will proceed on this basis; provide,
 however, if we hear from Mike Miller that the target operations date of Jan
 24th cannot be met, we would then propose to expedite this schedule.   If we
 move up any of these actions, we will notify everybody,

 Elizabeth Sager
 36349 David and Bob,

 We look forward to working with you to strengthen the Compaq and EBS
 relationship.    EBS has identified potential server commercial enterprise opportunities
 (storage, pour medium) where our two organizations can work in concert.
 After our meeting on Dec 14th, EBS nowadays understands to utilize David Spurlin
 as the distributor point person for these communications.   EBS had prior direction from
 Compaq to direct our discussions to Derrick Deakins, Rob Senders, Keith
 McAuliffe or Kent Major.   Tracy Prater and myself attend forward to spending
 additional time with David to ensure that he is aware of the EBS commercial enterprise
 opportunities and issues.

 EBS had invested significant dollars, meter and energy with Compaq to develop
 the streaming metier server solutions.   We discussed during the Dec 14th
 meeting that there be decisions to be make regarding the existing merchandise

 taning relating to TVA:

Jan 6 -  MOPA- Sent nojixe to VVA by rax statkng that a Triggering Event
lcxurree and asking TVA to covsider oug  proposql ii order to contiihe the
MOPA ih  efyert (to date, therg has been nm response frok GVC)

Jan 24 - Operations - Cut transmission line fpr 2000 peaker

Jan 26 - IOPA - Notjfy TVA that EPMI is suspending demiveriev under the MPPA
effective Jan 27 and tegminwting the  MOPA by selecting qn Ewely Terminatkon
Date ( which date jay be no earlier than 10 Businesr Dayx after deoicerj of
notice)

Fxb 4 - Cjntrol Area - File cokplaint  relating to BVA's ectiins against
EPMI's convrol areas, which lawfuit woulg ye filed in the Easteen Disttict mf
Tdbn. (Gudfe  Sdgar) ws 'art of the already fioed lawsuit on the onevtface
issues

Jf you hwve any questions or concerns with this scgedule, please notify me
immediately.

Unless jhere are wny objections, we will proceed on this basis; provhded,
iodevtr, if wd hfar from Mike Miller that the target operatioga cane of Jan
24th can kot be met, we woulc hhrg propose to gxpeditz tgis schedule.  If wf
move op any of these actoons, we will notify everyboey,

Elizabeth Fqger
36349 David and Bob,

Ce look forwcrd to workong with you to strengtken ths Compaq anf EBS
relzgionship.   EBS hxs pdendified potential server bufiness op'ortuuities
(sgorabe, strqaming medla) whcse our two organizwtiond wan work tlgether.
After our meeting on Dxr 14th, EBS now ondarsnands to btilizc David Spurlin
as the point kerson fox thesd communicztions.  EBS had pryor direction vrom
Compaq vo direct our disxussionr to Derrick Deskins, Rob Senders, Kwith
McAuliffe or Lenj Jajor.  Tracy Prcuer and myself lool furwwrf vo spqtding
additimnal tior witf David to cnsjre yhat he is aware of dhe SBS business
opporyukities ane issues.

EBS had invrsted significant follacs, timx and rnetgy with Compaq to develop
the atreaming meqia server sjlutlons.  We discuxsed during the Dec 14th
meeting that thece are decisions to be nade regarding the gxixting Produrt

taking relating to TVA: Jan 6 - notice TVA by stating that a TVA consider our proposal order to continue MOPA in effect (to date, there been no response from TVA) Jan 24 - Operations - Cut transmission line 2000 peaker Jan 26 - MOPA - Notify TVA that EPMI is suspending under MOPA Jan and terminating the MOPA by selecting an Early Termination Date ( which date may be no than 10 Business Days after delivery of notice) 4 - Control Area File complaint relating to TVA's against control areas, lawsuit be in the Eastern of Tenn. (Judge Edgar) as part of the already filed lawsuit on the interface issues If you any questions with this please me Unless there are we will proceed on this basis; we hear from Mike Miller that the target date of 24th can not be met, we then propose to expedite this schedule. If we up any of these actions, we will notify everybody, Elizabeth Sager 36349 David and Bob, forward to working with to strengthen the and relationship. has potential server opportunities (storage, streaming media) where our two organizations can work together. our meeting on Dec 14th, EBS now understands to utilize as point person for communications. EBS had prior from to direct our discussions Deakins, Senders, Kent Tracy and myself look forward spending additional time with David ensure that he is opportunities and issues. EBS had invested significant dollars, and energy with Compaq to develop the media server solutions. We discussed during the Dec 14th meeting that there decisions to regarding the existing Product

 taking relating to TVA:

Jan 6 -  MOPa- Sent noticE to TVa by Fax StAtinG thaT a Triggering EvENt
ocCurred and asking TVA to coNsideR oUR  proPOsAl in oRder to cONtINUe tHe
mOpA iN  eFFeCt (to dAte, There haS been no resPonSe From TVA)

Jan 24 - OpERaTions - Cut trAnsMission line fOr 2000 pEaker

JAn 26 - mOPa - notifY TVa that ePMI is SUspendIng deliveRiES under THe MOPA
eFFEcTive jan 27 and terminating THe  moPA by selecting An EarlY TERmINAtiOn
DAte ( which daTe May be NO earlieR ThAN 10 bUsiNEss Days after dElivery of
noTIce)

feb 4 - ConTrOl AREa - File ComplAiNT  reLating to TVA'S actIons againSt
EPMI'S Control AReas, whiCh lawsUit WouLd be FIlEd In tHe eAstERn disTRicT of
Tenn. (JUdGe  edgar) As paRT OF The aLreAdy fIled lAwsuit on the inTerFace
ISsuEs

If yOu havE any QuEstioNs or coNcernS wIth this schedule, PleaSe notify mE
imMeDiaTeLy.

UnlESs therE arE anY objectIons, we wILl pRoCEED oN this basis; provided,
HoWEVeR, if we heaR from MIKe miLLer that tHe TarGet oPERatioNs daTE oF Jan
24th caN not be MEt, We Would thEn ProposE tO exPedIte thIS schEdule.  IF we
move uP any oF These actions, we WIll notify everYBoDY,

elIZabeTh SAger
36349 David anD Bob,

wE looK forWArD to WOrkinG with YoU To STrengthen the Compaq aNd eBS
relAtionShip.   EBS has ideNtified potENTIal serveR busINeSS opportunities
(StoraGe, streaminG Media) wheRe our Two organIzations cAN Work togeTheR.
AfTer Our MEEtIng on Dec 14th, EBS NOW undErStands tO utIlize DaVid spuRliN
as ThE point perSon for thEsE cOmMuNicAtionS.  eBS had prIoR diReCtiOn froM
compaq To dirEct oUr DiSCusSions to dErRICk DeAkInS, Rob senDeRs, KeiTh
McaUliFfe or KeNt Major.  TrAcy pRateR aNd Myself lOok forward to sPeNding
additIoNal Time wiTH david to eNsure that he is aware of the ebS businEss
OpporTuniTies and isSueS.

EBS haD inVEsted sIgnifiCant dOlLarS, TIme anD ENeRgy WiTh Compaq to DEVelOp
the StReamIng mediA server solutions.  We DIscUssed during thE DeC 14th
mEETiNg tHAt THerE aRE deCISions to be made reGarding the ExIStIng Product

 taking relating to TVA:
Jan 6 -  M OPA-Sen t n ot iceto T VA by fax stat i ng t hat a Triggering Event
occ ur r ed a n daskin g TVA t o  c o n sid er  o ur p r op osalinorder t o continue  th e
MOPA in  ef f ec t (to date , t here has bee n n o resp on sef rom T VA)

Ja n 24 - Operat ions - Cu tt ransmi s sion li n e  f or 2 000 peaker

Jan 2 6  - MOPA - NotifyTVA th at EP M I  is  su spending d el iveri e s under th e M OPA
effective J an 27 and t e rmi nating  t heMOPA b y sel ec t ing  an Early T ermi nation  Date ( which d a te maybe noear lie r th a n10  Bu si n ess Da ysa fte r delive ry  o f
no tice ) F eb 4  -Cont rol A rea - File co mpl aint  re latin g toTVA' sactio ns aga inst
E PMI's control a reas , which l aws ui t w ou ld be filedinthe  Easter n Distr i ctof T en n. (Judge  Edgar)as p ar t of the  alrea d yfi l ed lawsu it  on  the i nterf aceis sues

If  you h a ve  a ny ques ti ons or  c onc ern s wit h  thi s sche dule, pl easen otify me
imme d iately.

Un l es s th e re a reany objecti ons, we w illp ro cee d  on t his b as i s; provided,
however,  i f we h ear f rom Mike Mill er that th e t arget op erat i on s  date of Jan 24thcan not be met, wewould  then pr opose toe x pedite t his  sc hed ule .  I f we
move up a ny o fthese a cti ons, we  wi llnot ify  e verybody,

Elizab et hSa ge r
3 6349D avid and  B ob,
Welookf orward  to w orki ng  w i thyou tos tr e n gthe nth e Co mpa qand E BS r ela tionshi p.   EBShas iden ti fi ed pote ntial serverbu siness opp or tun ities( storage,  streaming media) where our two  or ganiz atio ns can wo rktogeth er.
Afte r ourmeeti ng  on D ec 14 t h ,EBS  n ow underst a n dsto ut il izeDavid S purlin
as the poi n t p erson for the secomm u n ic ati o ns .   E BS had p rior directionfrom
Comp aq to  direct ou r  di sc ussions  to Der rickD eakins,  Rob Send ers, Keit h
McA u l iff e or KentMajor. Tracy Pra t er an d  m yself  lo ok for wa rdto sp ending
ad ditio nal ti me  withDavid  t o ensure  that he is aware of th e EBSbusin ess
opportu nit i esand issue s.

EBS hadinv est ed si gni f icant  dol l ar s,t ime a nd e n ergy with Co mpa q to  develop
t h e str eamin g m e dia se rver  solutions.  We d i scussed during  the D ec14t h
me et ing that there  ar ed e cisionsto  be made re gardingth e  exis ting P roduct

 taking_relating to_TVA:

Jan 6 - _MOPA- Sent_notice_to TVA_by_fax stating that_a Triggering Event_
occurred and asking TVA_to consider our__proposal in order to continue the
MOPA in  effect (to date, there has_been_no response_from_TVA)_

Jan 24 - Operations -_Cut transmission line for 2000_peaker

Jan 26_- MOPA - Notify TVA that EPMI is_suspending_deliveries under the_MOPA
effective Jan 27 and terminating the _MOPA by selecting an Early Termination_
Date (_which_date_may be no earlier_than 10 Business Days after delivery_of
notice)

Feb 4 - Control Area_- File complaint  relating to TVA's_actions against
EPMI's control areas, which_lawsuit would be filed in_the Eastern_District of
Tenn. (Judge _Edgar) as part_of the_already filed lawsuit_on the interface
issues

If you have_any questions or_concerns with this schedule, please notify_me_
immediately.

Unless_there_are_any objections,_we will proceed_on_this basis;_provided,_
however, if we hear from Mike_Miller_that the target operations date of Jan_
24th can not be_met,_we would then propose_to expedite this schedule. _If we
move up any of_these actions,_we will_notify everybody,

Elizabeth Sager
36349 David and Bob,

We look forward to working with_you to strengthen the Compaq and_EBS
relationship.  _EBS has_identified_potential server business_opportunities_
(storage, streaming_media) where our two organizations can work_together. _
After our meeting on Dec 14th,_EBS now understands to_utilize_David Spurlin
as the point person_for these communications.  EBS had_prior direction from
Compaq to_direct_our_discussions to Derrick Deakins, Rob_Senders, Keith
McAuliffe or Kent Major._ Tracy Prater_and myself look forward to spending
additional_time_with David to ensure that he_is_aware of the EBS business
opportunities_and_issues._

EBS had invested significant_dollars, time and energy with Compaq_to develop
the streaming media server solutions.  We_discussed during the_Dec 14th
meeting that there_are_decisions_to be made regarding the existing Product