This is the content of an email: We are getting close on this one relating to the Blue Dog turbines. I'm reviewing these drafts in detail, and expect that there will be another turn. Just wanted to give you a heads up. Kay

Subject: ENA/NorthWestern: Revised Letter Agreement and Exhibits

This is the content of an email: I had a brief conversation with Herman Manis, and he tells me that there is a different interpretation of accounting rules relating to power plants. Strangely enough, the change is one which should (I hope I hope) make power development projects easier. In the past, we ran into problems anytime we wanted to build a power plant and take megawatts off of it. Herman tells me that the current interpretation now focuses on the operation and maintenance of the plants, and not the power purchase agreement relating to the plant. This change in focus should make power development deals easier to structure. I would still like to set up an Intro to TurboPark meeting with Rose Engeldorf. Rose is currently involved in a push a couple of deals in the West this week, so it may be a bit before we can get it set up. A meeting with Herman would also be helpful. Maybe we can buy him lunch and quiz him on these new developments. Kay

Subject: Accounting rules for power plants

This is the content of an email: A presentation was given to the Transwestern Marketing Group in Houston over the PCB issues affecting sales of natural gas into western markets. The history and future potential impacts of market stratgies were also discussed. A training session on the Dehy MACT was attended in Santa Fe which was sponsored by the state of New Mexico, apprising companies of forth coming requirements under Title III. A request will be sent out ot the field for each location which has dehydration to complete a extended gas analysis and rich lean glycol samples. Notification to the staes and EPA is due by June 17, 2000. A conference call was attended to discuss the C/S 8 turbine project and its fate. Based upon submitted discussions it was decided to dispose of the turbine, compressor and auxillary box as a PCB contaminated waste and move the contaminated articles to a PCB landfill. The quarterly Transwestern/SoCal PCB management committee mtg was held via conference call. Invoices and charges were discussed which So cal had charged to their management and handling of PCB's on their system. At 86%, Transwestern's responsibility was $71,208.61. Clearances were received from the F&W and SHPO for the additional areas for the powerline transmission corridor of the Gallup C/S which is in progress. A custom fuel monitoring request wqas submitted to Region VI EPA for the Transwestern Lone Star Valero C/S. Installation and testing has been initiated on the precombustion chambers for the Superiors at the Atoka No. 3 C/S. While fabrication is in progress for the correct chamber, temporary Waukesha chambers were installed. Even though the chambers were not of the correct size and configuration, a 12.5% fuel savings was achieved and emissions were reduced by over 56%. The correct chambers will be available and installed sometime next week.

Subject: Weekly Environmetnal Activity Report

This is the content of an email: There is a proposal to have a meeting of the head traders of Enron, Reliant, Sempra, Coral, Duke, Southern, Dynergy and El Paso. The idea would be to talk about e-commerce in the energy business. Specifically, Enron might propose standardization of our masters, start-up of a clearing house for energy trading, electronic mechanism for confirmations, opening EOL to other companies to post bids and offers, and discuss electronic protocols for transactions with other energy companies to reduce costs. We would probably discuss the state of regulatory restrictions under the CEA. What are the anti-trust issues for such a meeting? What are the appropriate parameters for such meeting? Should legal counsel be in attendance? Would it be best to make invitations through a formal letter?
Subject: Proposed Meeting of Major Energy Trading Houses