Subject: "Pueblo".

Body: I saw in the press that N.M. has delayed electric open access until Jan 1, 02 for residentials and small commercials and to July 1, 02 for large industrials. That increases the likelihood that the Pueblo project will have to dump power in the wholesale market at 4 Corners for a while before retail markets start to open up. One more thing to factor in. I'm expecting to hook up with Bill Votaw of Enron Federal Solutions today to talk about Langley's "sole source" procurement strategy with DOE. I hope to get Votaw on the phone with Langley's D.C. govt. contracts lawyers to discuss their theory. We should be in a better position to raise a flag if the sole source strategy is really a high risk approach. I'm not sure where that would leave us because the only other approach I can think of is to steer DOE into opening the power plant up for bids. Langley does not appear interested in trying to win an open bid for the power plant, although frankly we would probably have about as good a chance as anyone of winning. Once we clear up the government contracts issues (if ever) it seems to me that it would be time to expand the team to include Federal Solutions (potentially, if they see an angle to help them with their Kirtland outsourcing strategy) and ENA. The ENA involvement would be particularly important so we could get a line of specific turbine availability and the specifications/economics that would result. I'm probably engaging in wishful thinking again, but my hope is that the economics on a specific turbine/heat exchanger configuration work out a little better than the generic economics from the model that James ran. If we think this thing is a potentially viable deal after I talk to Votaw and the Langley DC team, we need to grab Bill Cordes and discuss whether we go to ENA "from the bottom up," or through Stan "from the top down" to get hooked into a deal team over there. Kevin, I still intend to hook you into the Votaw-DC call if you are available. Thanks. DF

Subject: "Trading Track meeting on Tuesday".

Body: Hunter, I will be out of the office on Monday and Tuesday meeting with the EIA in Washington D.C. so I will miss the Tuesday afternoon Trading Track meeting. I think Biliana should spend a few more months in the fundamentals group since she has only been here since mid-February. She has also expressed an interest in spending 2-3 months more in the group, and she could benefit from learning about the pipelines in the STP group. We lose Virawan (Aug 1st), Mat (Aug 1st), and Denver (Sep 1st). We get Bilal Bajwa (Jul 1st) and Jason Wolfe (Sep 1st) We could use two additional Trading Track Analysts/Associates in Jul/Aug to fill out the fundamentals group. If we don't get the people from the Trading Track, I will have to recruit them from the Assoc/Analyst pool. Let me know if you have any questions. Chris

Subject: "Meeting with Mayor Willie L. Brown, Jr.".

Body: Dear Mr. Skilling, On behalf of Mayor Willie L. Brown, Jr. (San Francisco), it is my pleasure to invite you to meet with him regarding energy issues in California. Mayor Brown wishes to meet with you in his capacity as a trustee of the Board of Administration of the California Public Employees Retirement System (CalPERS). As you know, CalPERS is the largest public pension fund in the nation and is a sizeable investor in domestic energy stocks, bonds, debentures, etc. The Board has appointed Mayor Brown to lead a delegation of trustees to meet with the CEOs of CalPERS' largest energy holdings. Enron represents one such holding. The Mayor would be pleased to host you in his office at the newly renovated City Hall in San Francisco or arrange an alternative location at your earliest convenience. I will await your response. Sincerely,

Subject: "Meet".

Body:
Hey, I know it's a pain, but I think there would be value in getting together (if folks are available) on Thursday evening from 7-10 with (lots of) beer and pizza and grind through the finance case. We can do it at my apartment, or anywhere else you folks would like to do it. Thoughts?