Subject: "OSTRIP Function in Exotica".

Body: Eric, This is to update you on the current situation with the OSTRIP function in Exotica. After some lengthy analysis of the function, its inputs and the documentation associated with it, it was brought to our attention in the Research Group that the OSTRIP function was being utilized in different manners by different people within Enron. In order to remedy this situation, the documentation of Exotica was revised and more details were added, so as to make explicitly clear the distinctions between the fixed price options and forward start options. (You will find attached a copy of the most recent version of the Exotica documentation.) In addition to discussions with Santiago Garcia in structuring, it was seen to be important to ensure that those responsible for booking the options in ERMS (specifically, Jeremy Wong) be updated on the changes. By pure coincidence, the two ways that inputs were made for fixed price options gave the same values for the premiums. However, one methodology is really incorrect as far as the documentation is concerned, and the attempt has been made to rectify this. The forward start option pricing has not changed in any way. I would like to arrange a meeting tomorrow afternoon (Thursday) between all those parties concerned to ensure uniformity of pricing across the board. If you are available, I would appreciate it if we could meet at around 4:00 PM. Regards,

Subject: "NYISO - Technical Bulletin # 73 - Payment for uninstructed over-generation from off-dispatch generating units.".

Body: Dear Market Participant, Technical Bulletin # 73 - Payment for uninstructed over-generation from off-dispatch generating units - is being distributed for Market Participant comment. The Technical Bulletin will be posted to the NYISO web site following the comment period. The purpose of our Technical Bulletins is to facilitate participation in the NYISO by communicating various NYISO concepts, techniques, and processes to Market Participants before they can be formally documented in a NYISO manual. Please forward comments on this Technical Bulletin, via email, by 5PM on Thursday, August 16, 2001 to: Peter Lemme NYISO Customer Technical Services plemme@nyiso.com (See attached file: TB73.pdf) - TB73.pdf

Subject: "Enron/Stanford Project".

Body: Hello Vince, How are you? Hope all is well. Eric tells me he had a very productive summer at Enron and was exposed to several ideas that have shaped his research agenda, both in the pricing and trading space and in the telecom one. I need to support him and a new student I am bringing aboard on this project for this quarter and the academic year, and I would like to see how we can move ahead with this year's funding for this project. I understand that EBS has had some problems, but we are willing to expand our research agenda to match the current needs and foci at EBS or other groups. Eric broughtback from Enron a couple of very interesting research problems that he/we is/are focusing on now. Please let me know how we can proceed. I'm under some pressure by the Department to move ahead with finalizing the research assistanships. I look forward to see you again at Stanford or Enron. Best Regards,

Subject: "Enron/Stanford Project".

Body:
Hello Vince, How are you? Hope all is well. Eric tells me he had a very productive summer at Enron and was exposed to several ideas that have shaped his research agenda, both in the pricing and trading space and in the telecom one. I need to support him and a new student I am bringing aboard on this project for this quarter and the academic year, and I would like to see how we can move ahead with this year's funding for this project. I understand that EBS has had some problems, but we are willing to expand our research agenda to match the current needs and foci at EBS or other groups. Eric broughtback from Enron a couple of very interesting research problems that he/we is/are focusing on now. Please let me know how we can proceed. I'm under some pressure by the Department to move ahead with finalizing the research assistanships. I look forward to see you again at Stanford or Enron. Best Regards,