Subject: "Cinergy Services".

Body: Tana, To follow-up with the message I left with you. Cinergy Services would like to transact on US East Financial Power product PJM Bal of Day and the new Cinergy Hourly Index (which is coming on-line soon). I understand they don't have a Master Agreement under this entity. The trader mentioned a "long form confirm", which is what is governing the trades they do with us OTC and is wondering if that would suffice. Please call their attorney Mr. Jeff Gollomp to discuss. Thanks for your assistance !

Subject: "Canada Gas options".

Body: Mark, I have attached a document which contains the long descriptions for Canadian Daily Nat Gas options. The trader will be using Options Manager on these products and because he has to choose an exercise date, he will choose a middle of the month business day. However, there will be an option per day during the term. Please review the descriptions the trader put together and let me know your thoughts. Kevin Meredith

Subject: "Request: Current Headcount".

Body: Hi everyone. I have yet another request for which I need your input. Causey is reviewing his budgets/direct reports, and would like to get the most current headcount numbers for the accounting groups in your business unit(s). What I mean by accounting groups includes everyone whose superior ultimately reports to Causey. For instance, this would include the traditional Accounting/Reporting departments, Tax departments, and Transaction Support departments. It should NOT include any settlements/mid-office groups (for example, Sally Beck's world). I say "department" because I don't want just accountants, but everyone who is in that dept, i.e. admins, clerks, etc. If you have a question on any unique situation, please just give me a call and we'll discuss. The data needs to be as recent as possible. Hopefully, I can get this as of July 31/August 1. If you have more recent data, that would be great. At a bare minimum, I need total headcount as described by group (acct, reporting, tax, etc.) It would also be useful to get as much detail as possible, i.e. by sub-group, by personnel level, etc., but I know that may be a challenge given the timing of the request. Additionally, if you can provide me with a "current estimate" for the groups you report, that would be ideal. I know that the official CE doesn't go to that level, but I'm betting that most of you have something that projects your G&A by cost center (or group/dept) for 2001, as of the 2nd CE. The headcount information is a must have, and the 2001 cost estimate is secondary, although I'd like to ask everyone to strive to provide both. If you can't provide estimated costs for the groups you report, please call me so we can discuss. Speaking of the timing, I need this by Wednesday, August 29 at 12 noon. This will be given to Rick on Thursday morning, so I'll need some time to consolidate the data and to ask you all any further questions. If you have any questions, please give me a call. Thanks,

Subject: "Special Session Notes".

Body:
Hi all, We spoke to Rick Simpson in Hertzberg's office who related the following: The last meeting of Senate, Assembly, and Governor's staff was last Wednesday. The Senate staff has been advised that the Governor is not interested in having a bill that could only pass the Senate. He wants one that can get 41 votes in the Assembly as well, which means direct access would have to be included. Rick spoke to Brian Kelly of Burton's office on Friday. Brian said they are working on securitizing the interest costs. They are looking at something like 50-60 kw for the core/non-core number which would still be able to be financed even with fewer customers, although the transaction costs would be higher with a smaller customer base. I asked Rick if they expect all of their members to return and he said most of them would. I suggested that it had better be the right ones, or they'd have trouble getting to 41 votes. He said he wasn't sure at this point if a compromise bill could be ready by next Tuesday, but the Assembly is willing to try with the right bill. I spoke to John Burton a few minutes ago who reiterated that he will not look favorably upon including direct access although he understands that some business democrats in the Assembly need it to vote for a bailout. He said he spoke to an Assembly leader this morning who told him that even 78xx would get only 36 votes today if it came up for a vote (it squeeked through on 41). He is considering putting up 78xx for a vote on Tuesday (it will fail) and continuing discussions with the Governor's office after that. He said to tell you all that the bailout bill can't pass next week because it interferes with Scott and Gayle's wedding on the 14th, and coincidentally that is the last day for the Governor to sign or veto bills.