IN: A little humor to keep us smiling in these troubled times: Make sure to read the last one. *************************************** Social Studies: Some Useful Definitions Feudalism You have two cows. Your lord takes some of the milk. Fascism You have two cows. The government takes both, hires you to take care of them and sells you the milk. Applied Communism You have two cows. You must take care of them, but the government takes all the milk. Capitalism You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income Enron Venture Capitalism You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more. - No Balance Sheet provided with the release.

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OUT: Useful Definitions

IN: Preschedule had a heck-u-va day on Friday. Due to many problems, some of our tags were not completed until after the 3pm preschedule deadline. Apparently, some of our counterparties automatically deny late tags, though they may be corrections of tags made prior to the deadline. In any case, we have a list of tags that have been submitted as real-time tags and the schedules should be treated such. The tags and paths are as follows: 25869: DELAYED TAG NEEDS SUBMITTED NO LATER THAN AN HOUR BEFORE SCHEDULE FLOWS. 10MW HE23-34 ON 07/01: PSCO(G)WSYS-PSCO(T)WSYS/CRAIG#GF-DESERRET(T)CRAIG/BONANZA#4869,mnf-DESERRET(T)BONANZA/MONA#4869mnf-PAC(T)MONA/REDBUTTE#133871f-NEVP(T)REDBUTTE/MEAD#1022243mnf-PSCO-EPMI-APS(T)MEAD/PV#22937-EMPI-APS(T)MEAD/WW/PV #22936F-EPMI-PACE-CISO(T)PV/MALIN-PACE(T)MAL/PACE SYS-PACE 25872: DELAYED TAG NEEDS SUBMITTED NO LATER THAN AN HOUR BEFORE SCHEDULE FLOWS. 10MW HE7-22 IN 07/01: PSCO(G)WSYS-PSCO(T)WSYS/CRAIG#GF-DESERET(T)CRAIG/BONANZA#4869,mnf-DESERET(T)BONANZA/MONA#4869mnf-PAC(T)MONA/REDBUTTE#133871f-NEVP(T)REDBUTTE/MEAD#1022243mnf-PSCO-EPMI-APS(T)MEAD/WW/PV #22936F-EPMI-SRP-SRP(T)PV/KYRENE#GF-SRP 25873: DELAYED TAG NEEDS SUBMITTED NO LATER THAN AN HOUR BEFORE SCHEDULE FLOWS. 15MW HE7-22 IN 07/01: PSCO(G)WSYS-PSCO(T)WSYS/CRAIG#GF-DESERET(T)CRAIG/BONANZA#4869,mnf-DESERET(T)BONANZA/MONA#4869mnf-PAC(T)MONA/REDBUTTE#133871f-NEVP(T)REDBUTTE/MEAD#1022243mnf-PSCO-EPMI-APS(T)MEAD/WW/PV #22936F-EPMI-PNM-EPE(T)PV/WW-SRP(T)WW/MEAD-NEVP(MEAD) 25823: 25MW HE7-22 ON 07/01: DGT(MONA)-AEP-PSCO-EPMI-PAC(T)MONA/REDBUTTE-NEVP(T)REDBUTTE/MEAD-NEVP 25824: 15MW HE1-6 ON 07/01: DGT(MONA)-AEP-PSCO-EPMI-PAC(T)MONA/REDBUTTE-NEVP(T)REDBUTTE/MEAD-CRC(MEAD) 25825: 10MW HE1-6 ON 07/01: DGT(MONA)-AEP-PSCO-EPMI-PAC(T)MONA/REDBUTTE-NEVP(T)REDBUTTE/MEAD-CRC(MEAD) 25870: DELAYED TAG NEEDS SUBMITTED NO LATER THAN AN HOUR BEFORE SCHEDULE FLOWS. 10MW HE23-34 ON 07/02: PSCO(G)WSYS-PSCO(T)WSYS/CRAIG#GF-DESERRET(T)CRAIG/BONANZA#4869,mnf-DESERRET(T)BONANZA/MONA#4869mnf-PAC(T)MONA/REDBUTTE#133871f-NEVP(T)REDBUTTE/MEAD#1022243mnf-PSCO-EPMI-APS(T)MEAD/PV#22937-EMPI-APS(T)MEAD/WW/PV #22936F-EPMI-PACE-CISO(T)PV/MALIN-PACE(T)MAL/PACE SYS-PACE Thanks, Donald.

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OUT: Preschedule paths going real-time for Sunday and Monday, 07/01 and 07/02.

IN: In order to complete our files, please send copies of signatures to the following documents: 1. Certificate of Amendment to Certificate of Formation of ERMT LLC (regarding name change to NETCO Holdings LLC) 2. Certificate of Amendment To Certificate of Incorporation of ESVL Corp. (regarding name change to ERMT Corp.) 3. Amended and Restated Certificate of Incorporation of ERMT Corp. (regarding name change to The New Energy Trading Company) 4. Written Consent of the Sole Stockholder of ERMT Corp. (dated 11/8/01) 5. Unanimous Written Consent of the Board of Directors of ERMT Corp. (dated 11/8/01) 6. Unanimous Written Consent of the Board of Directors of Enron North America Corp. (dated 11/5/01 regarding contribution to RMT) 7. Unanimous Written Consent of the Board of Directors of Risk Management & Trading Corp. (dated 11/5/01 regarding contribution to ERMT LLC) 8. Unanimous Written Consent of the Board of Directors of ERMT LLC. (dated 11/5/01 regarding contribution to ERMT Corp.) 9. Cross Receipt (of ERMT and RMT regarding $250,000,000) 10. Unanimous Written Consent of the Board of Directors of ERMT Corp. (dated 11/6/01 authorizing certain agreements) 11. Unanimous Written Consent of the Board of Control of ERMT LLC (dated 11/6/01 regarding issuance of 20 Units) 12. Acknowledgment of Receipt of ENA 13. Unanimous Written Consent of the Board of Control of ERMT LLC (dated 11/7/01 regarding issuance of Class B Unit) 14. Cross Receipt (of ERMT LLC and GSS Contract Services -- I will hold

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OUT:
Swapco -- Outstanding Items