IN: Attached is the revised Torch Energy Exhibit including the column heading changes, the two pooling point changes, and the percentage splits between IFERC and GD. Note: If both IFERC and GD volumes were zero for a given point, I made the pricing split as 50/50. Please review and provide any comments as soon as possible. Thanks,

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OUT: Torch Exhibit revised 9/20

IN: Today FERC issued the following draft orders: NYISO TEP and Bid Cap (ER01-3001): Commission granted NYISO's request to extend the currently effective $1000/MWh Bid Caps on certain NYISO adminstered markets, and to extend its Temporary Extraordinary Procedures for Correcting Market Design Flaws and Addressing Transitional Abnormalities, until the Northeastern RTO is operational. The Commission ordered NYISO to narrow the scope of the TEP, and to file tariff sheets doing so within 30 days. NYISO proposed virtual bidding procedures (ER01-3009; ER01-3153): Tariff changes to implement virtual bidding were approved. The changes would allow market participants to bid non-physical generation and load into the day-ahead market and settle the bids in the real-time market. Also accepted were NYISOs Market Mitigation Measures to address gaming or market power strategies that might emerge as a result of the virtual bidding. NYISO - Cost responsibility for new interconnections. (ER01-2967): Tariff changes allocating cost responsibility for interconnection facilities. The provisions allocate to developers 100% of the cost of facilities necessary to physically interconnect the project. Additionally, developers are allocated the coswts for transmission system upgrades that would not have been made "but for" the interconnection, minus the cost of any facilities that the NYISO's regional plan dictates would have been necessary anyway for load growth and reliability purposes. ISO-NE - Interim Bid Caps (ER01-3086): Commission approved extension of bid caps until the Northeastern RTO is operational. Calpine v. ISO-NE (EL01-124): Commission granted complaint by Calpine and Mirant, finding that ISO-NE has amended Market Rule 5 to exclude external contracts from setting the energy clearing price, in violation of a Commission order. If you need further information, please let me know. Susan Lindberg x30596

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OUT: Orders issued today in NYISO and ISO-NE proceedings

IN: Hi Kathy, I neglected to keep a hard copy. Please send hard copies of the change order to: Brian Hulse, Carl Tricoli, and me. If you prefer, you can just fax it back, and I will send it to the ENA folks. Thanks,

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OUT: LM 6000 change order

IN: Please add the following credit reserve for September. Counterparty: El Paso Merchant Energy, L.P. Trader: Rob Benson Deal #: 783742.1 Deal Date: 09/20/2001 Deal Description: EPMI selling 50 MW on peak power into PJM (Western Hub) Cal 08 though Cal 10 Notional Volume: 614,400 MW Price: $39.75/MW Term: 1/01/2008 through 12/31/2010 Delivery Point: PJM (Western Hub) Reserve per Notional Megawatt: $0.15/MW **Total Reserve Amount** $92,000 (ninety-two thousand US dollars) Transaction confirmed under EEI executed 03/01/2001. Thanks,

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OUT:
El Paso Reserve Deal #783742