IN: This is an email
CGLF I created deal 530445 (purchase from New Power at CGLF + $.06) to bookout with deal 380571. CGAS I created deal 503451 (sale to New Power at CGLF + $.06 + Variable from CGLF M/L to Leach). Volume = 1,278 Deal 380492 is a sale to New Power, price = NX1 + .28, Volume = 2,683 day Please bookout the 2 sale deals with deal 503453 (purchase from New Power at CGAS IF + $.0125). Volume = 3,961 day. Let me know if you have any questions. Chris

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OUT: New Power Bookouts on CGLF and CGAS

IN: This is an email
Here's the latest Tino-gram: 1. Tino's environ. consultants have not discovered any stop signs. 2. The Isleta is interested in granting Dennis ROW/lease for the power plant as well as the pipeline. The power plant could be located on Isleta land adjacent to the South boundary of the Scandia reservation. Thus, the power plant could be connected to DOE's existing powerline infrastructure without ever leaving the Isleta and DOE land. PNM would not be necessary to move power to DOE. Unclear to me whether this approach would give the power plant optimal access to the power grid for sales of surplus power. (maybe this could be done through DOE to an interconnect with PNM on the Scandia reservation?) 3. Dennis is using Jim Slattery, an ex law partner of mine in DC (and ex Dem. U.S. Congressman from Kansas), as his primary contact with Bill Richardson at DOE. My recollection is that Jim does have a good relationship with Richardson, so this seems very likely to be effective. Tino reports that "DOE is OK with the deal" and the next step is negotiating the power contract itself. Tino said that DOE is aware that the capital for the project will not come from the tribe so the tribe's interest will be fairly thin. It is unclear exactly how much indian ownership Dennis and Slattery promised DOE. 4. Tino has run into a power plant consultant named Jack Maddox who says he's working on a 230MW plant to be located west of Belen. Tino thinks he's working for the Laguna tribe, but wanted us to find out who is planning a big power plant out there. Is this ours? PNM's? El Paso? Finally, the next key step is obviously the economics. Based on what Tino told me, I'm convinced that Dennis and Tino don't have a real good sense of how much $$$ might be in this deal. They are groping a bit and our initial analysis of the numbers will likely carry a lot of weight. How are those efforts coming? Thanks. DF

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OUT: Pueblo: CONFIDENTIAL

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The SO2 Emissions Credits Inventory transaction with Barclays Bank PLC has been extended for 12 more months as of yesterday, November 6. Barclays has arranged a facility of $170 million, of which $158 million was used as of yesterday. As a condition of extending the term past yesterday, Barclays required collateral in the form of a cash deposit or an L/C from an acceptable bank. We have posted cash until L/C lines become available. The cash raised, net of collateral posted, was approx $98 million, with capacity to put more SO2 credits into the facility. The facility allows Enron to raise cash off-balance sheet without leaving us with short positions in our SO2 book. As a condition of Barclays accepting cash collateral instead of an L/C, we amended the Swap Master between ENA and Barclays PLC to reduce the number of days to pay to avoid a payment default to one business day from three business days after notification by Barclays. This amendment automatically reverts back to the original three business days immediately upon Enron posting an L/C to replace the cash collateral. Further, Barclays has agreed to review the need for collateral in six months, such that if our credit situation improves sufficiently Barclays will release the collateral while leaving the facility in place. The terms of the transaction allow EGM to sell SO2 Credits into the facility and call back the credits on one day's notice multiple times over the next year. We pay interest expense in advance as a call option premium; if we call any credits back early, however, we receive a refund on the unused interest expense. The upfront fee was 50bp on $170 mm for the year (though we really have 13 months) and the spread is 65 bp. Please contact Soma Ghosh or me if you would like further updates. On behalf of Soma Ghosh and Jim Lewis

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OUT:
SOX Financing Update