Q: I've gone back through the ISDA Credit Support Annex and the "green book" and my conclusion is that unless we modify the standard form, we have to give an Independent Amount back to the counterparty when we go out of the money far enough (note that the definition of Exposure results in a negative number when we are out of the money reducing the Credit Support Amount below the Independent Amount). The theory there is that as the market moves against us, we are cushioned by our "out-of-the-moneyness" and will be able to ask for support as the market moves back in our favor before we are actually in the money. I'm afraid that Credit has been operating under the assumption that we get to keep Independent Amounts until the Transaction terminates. We need to set up a system with Credit so we all know what is meant on the credit work sheets -- i.e. whether a cushion or up-front amount should be
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A: Independent Amounts

Q: Attached is the current template for the ERCOT power swap transaction. You would substitute "South" or "West" in lieu of "North" if one of the other zones is to be used. Please let me know if you have any questions or comments. Regards,
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A: ERCOT Zone North 2001

Q: Dear Jeff, I sent you a presentation concerning InterFit Health which is the diagnostic screening company we discussed months ago. There are two issues I would like to address: I. Are you interested in investing? 2. I would like to present to Enron our scope of services which will in all certainty provide lower healthcare cost and greater productivity. The cost of our biometric testing is very modest in comparison to your total health costs and leads to designing your benefits program with disease risk knowledge vs. shooting in the dark. This is a truly unique approach which is why JP Morgan Chase, Reliant, and Halliburton have become clients of the company in the last month. I know that you are very time constrained so if you cannot address this with me please refer me to another Enron officer who has bottom line responsibility for your healthcare costs. The same information was sent to Ken and I have placed a call to him. I appreciate your considering our services. Best regards,
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A: Mischer Healthcare

Q: Porter and the whole gang called me while you were at lunch MKM. I'll give you a full report when I get off this conf. call but short answer is they don't want to meet next wk and want us to provide a bunch more info and then meet. DF
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A:
DC