IN: I hear that former Enron marketers Greg Wolfe and Holli Krebs will be joining AEP. AEP does not yet have an office in Portland, but Greg is working out of his house. Holli has not yet started work because her non-compete agreement is still in force.

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OUT: Gossip

IN: Group, We have developed a process for tiering our bids and should do so going forward. Please use appropriate dollar and mw values. Below is JUST an example. When tiering, the top numbers (mw values) must be monotonically increasing and the last two numbers on the bottom of your tier ($ values) must be the same.

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OUT: Tiered Adjustment Bids

IN: Pre Flight Fund Trader for 2/7/02 Wednesday 2/6/02 ********************************* Real Money Seasonal Trading Account (New! All weightings are approximate) 95% Money Market 5% HGMCY (Harmony Gold). Sold all Rydex Tempest Fund. We exited the Rydex Tempest Fund. We would advise you to do so as well. It's about time for a bounce and we shouldn't be greedy. Rydex trades these funds in the morning, so there should be little difficulty exiting. The Gold stocks are looking a bit toppy, so we may take a profit on strength tomorrow. Our managed tracking account is up 16.98% for the 18 months since June 30, 2000. This is a very conservative approach (~1/3 the risk of the market), using both long and short funds as well as the occasional favored sector/stock idea. All performance is net of fees, commissions, and interest. Your results may vary, and standard disclaimers may apply. We DO use discretion. For further information, call us now. Active Model Bot 33% Profunds Ultra Bear 10/2. Bot 33% Profunds Ultra Bear 10/3. Bot 33% Profunds Ultra Bear 11/15. The market is driving us nuts, but the trend has turned. We have committed, perhaps foolishly, to holding this one. Cover all positions if we print 1065. Hedged Model 50% Waterhouse Dow Fund (WDOWX) 25% Profunds Ultra Bear The MACD is negative, and the Weekly MACD is negative. The Seasonal Cycle is positive, but now less so. We are Bears. VIX Trader Flat. Sold 1/2 position in Profunds Ultra Bull from 1/16 a/o 1/31. ********************************** Last time, I said that a rally could materialize, but i didn't have absolutely compelling reason to expect it to occur or that it will be much to write home about, as yet. That was probably about the best one could call it. The market is not giving us much help, but it certainly seems to be lack lustre. The market can still rally, and a rally of some sort is due right about now, but so far, nothing is getting going. Oversold indicators are now starting to get up to levels that bring rallies. The same is true with shorter-term sentiment. The VIX is up at the top of it's Bollinger Bands, which usually brings some buying (the bands define the likely range of an indicator--right now the VIX shows pessimism at relatively high levels). The Rydex Ratios show a significant excess of Bearish fund buying as well. The problem is, nothing is showing any really fear. All I am seeing is a bit too much Bearish consensus among aggressive traders

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OUT: Pre-Flight Fund Trader 2/7/02

IN: All: We have set up the following recurring meetings: 1. One hour on Thursdays with Mark Haedicke and his legal team 2. One half hour on Monday and Wednesday with Bill, Molly, Teresa, Sharon, Tracey, and Lisa. Also Rita Bohner, Paul Darmitzel and Ed Essandoh of EES legal will attend. This meeting will be primarily for the dealing with the high volume of small EES deals. The aim is to define the process and drill on implementation (notices, termination, physical disconnection, proofs of claim, etc.). Molly has made great strides here. 3. Sharon Sullo and Tracey Kozadinos are developing a standardized database for the effort. Debbie Brackett has gotten involved on system feeds. More to come on this. The initial thoughts with Mark Haedicke were to parse the debtors into two or three baskets. Smallest size would be a process. We are grappling with whether we need a mid size and a large size process. As not all these deals show up on the Hot Deals Report. I have scratched out the top ten, high touch, efforts below: 1. PG&E 2. Edison 3. 360 4. NPW 5. Polaroid 6. California PX 7. Global Crossing 8. DPC LNG 9. EPIK 10. Cuiab? Turbine 11 Regards,

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OUT:
Getting organized