Subject: "Settlement candidates".

Body: CONFIDENTIAL - DO NOT DISTRIBUTE Based upon yesterday's meeting, we discussed where R& C is in the money and we are the only Enron counter party involved, Pushkar and Stuart could contact these entiies to reach closure to get $ in the door after the appropriate approvals regarding the settlements. The attached confidential listing shows exposure at 12/12/01. Any liquidated amounts not settled will need to be taken into account. Based on yesterday's discussion, I have sorted the counterparties regarding course of actiion. If you do NOT agree, please advise ASAP. Sheila

Subject: "Cumulative Build for 3's and 4's".

Body: Mary, I have eight companies that are ranked as 3's. Below are the dates I have tentatively marked down for CB meetings. Since you are the only required attendee, I have not reserved meeting rooms at this point. I think all the 17th floor rooms are pretty well booked anyway. I was thinking we could meet in your cube to discuss these companies on the given dates. Company # Date 551 11/14 1572 11/19 (this is the same day as company 20R. we might be able to do them at the same time) 47E 11/20 890 11/26 986 11/29 1095 12/5 003 12/13 (these are both divisions of 367) 1700 12/13 In addition to these companies, I have the following tentative dates planned for my 4's: Company # Date 1573 11/26 (the same day as 890. both are divisions of 985) 1407 11/28 1650 12/18 (these are all the same type of company, and do not have much activity at all) 1688 12/18 1690 12/18 1691 12/18 1699 12/18 Let me know your thoughts/availability for these dates. I figure we can plan a time around when you are free on each specific day.

Subject: "August 2001 invoices".

Body: The invoices for August 2001 settlements were posted by 10:42 AM today, Saturday, September 8, 2001. The NYISO apologizes for any inconvenience resulting in posting these invoices a day after they were scheduled. The Customer Settlements group makes every effort to render accurate invoices on a timely basis. Although issued a day after their scheduled posting, the invoices are still being issued within the 5-business days. {I'd forgotten about Labor Day when I set up the schedule.} Transmission Customers will observe adjustments for an error on in May 2000 Settlement Adjustment invoices that were issued in July. The total adjustment amounted to $2,081,568.11 and was allocated across 2,261,753.08 MWh. Customers may validate their respective adjustments by computing their ratio shares of the $2,081,568.11 using 2,261,753 MWh as the denominator in their respective ratios of their May 2000 load. The reason the denominator of the ratio share appears small is because the pay out of this adjustment is to the Transmission Owners. In order not to assess the TO's a proportionate share of the $2,081,568.11, which would defeat the purpose of the adjustment, their withdrawals have been excluded from the ratio share. Transmission Owners should observe a credit on their invoices based upon their respective megawatt-mile coefficients for the period. With regard to the November 1999 & December 1999 settlement adjustments that were scheduled to be issued on the 7th, the NYISO intends to issue those invoices next week. The issuance dates will ensure that customers will have at least 5 business days to review the invoices prior to payments being due to the NYISO. If necessary, the NYISO will reschedule settlement dates for these months should our reconciliations take longer to complete; however, we do not anticipate this at this time. In addition, I'd like to take this opportunity to clarify a point that I made in a TIE posting regarding the rebilling of the August 25th settlements. The initial billing runs for August 25th were done without considering ConEd's sub-zonal load. As a result, it appeared as though there was no load in the ConEd sub-zones on the 25th and all DAM purchases and bilateral transactions in those sub-zones were sold back to the market in real time causing the Schedule 1 residual adjustment to be grossly inflated. The reason this occurred was due to what appears to have been a frame relay problem between the NYISO & ConEd resulting in the NYISO not receiving a file from ConEd. By no means was my email notification of this event to imply that ConEd was not complying with the daily load provision process. This was merely a hardware/communications issue. Regards,

Subject: "Price Letter".

Body:
Stephanie, I forwarded a hard copy of the operational control letter yesterday. Let me know if you don't have it. Attached is the price letter. There is no formal contract in place between TW and EE&CC for the construction. Both TW and ECS as I understand, have signed AFE's with EE&CC for the projects. We will most likely have to address this risk in the Contribution Agreement. I will talk with Mark and Mark about this. PPA- we are expecting comments back from CDEC late today. Schedule is now to review their comments and meet with them Tuesday (via phone or in person) to finalize. We can likely get Patti a copy after Tuesday. Contribution Agreement - Pending resolution of the construction risk issues, we can have a draft for Patti early next week.