Subject: "March 28th".

Body: I am traveling to LA on Tuesday and will not be back until late Wed. night. ( Plus, your sister lives way the hell out of town) Any other time you are available? I'd love to show off my kids.

Subject: "Exchange Rates".

Body: Any chance we could look at the US$/Euro rates in addition to the US$/C$ rates to see whether there's a strong correllation for use in the forecasting model? Thanks. KC

Subject: "Upstream Capacity".

Body: On Thursday last week the Commission eliminated the old "Texas Eastern" rule that required pipelines to obtain prior FERC approval before contracting for transportation and storage capacity on upstream or downstream pipelines. The new rule allows pipelines to acquire and use such capacity without going to FERC first. The rule does reiterate that bundled sales of gas are still prohibited, and further provides that the acquiring pipeline will be financially at risk for the costs of the acquired capacity. Interestingly, the acquiring pipeline apparently has the option of selling the acquired capacity under its own rate schedules or of releasing the capacity pursuant to its capacity release program. The order is silent on whether the price cap applies to short term releases of acquired capacity. While we are still reviewing the order and may provide additional guidance at a later time, I'd emphasize for now that our normal contract approval procedures and authority thresholds should be deemed to apply to capacity contracts. For example, the "Approval Authorization for Cash Expenditures" dated Feb. 3, 2000 provides Dave and Steve with authority up to $250,000 on operating expense obligations. Please contact me if you have any questions on this matter. DF

Subject: "Organizational Announcement".

Body:
I am pleased to announce that Jana Domke has accepted the position of Director, Compensation for Enron Transportation Services, effective August 1, 2001. Jana started with Enron in May, 2000 and most recently has been Director of Compensation & Benefits for Enron Wind. Prior to joining Enron, Jana was a Practice Leader with PricewaterhouseCoopers, and Director, International Compensation & Benefits for Smith International. Jana has 19 years of experience in both domestic and international compensation and benefits. Jana received her M.B.A. from the University of Houston. She also has a Bachelors Degree from U of H in Organizational Behavior & Management. Jana can be reached at (713) 853-6329 and her office location is EB1156. The ETS Compensation staff, including Jana's direct reports, can be viewed on the attached organization chart. Please join me in welcoming Jana to the ETS team.