Subject: "Raptor: Talon/Harrier/EBS Investments, L.L.C.".

Body: All: Attached are the following docs: (1) Talon I LLC/Harrier I LLC equity swap confirm (2) Harrier I LLC/EBS Investments, L.L.C. equity swap confirm (3) revised ISDA Master Agreement Schedule for Harrier I LLC and EBS Investments, L.L.C. Please review and provide me with your comments. I do not have all necessary address and account information. The swaps are subject to the ISDA 1996 Equity Derivatives Definitions. Section 7.4 (of those Definitions) contains the payment obligations and provides that the Equity Amount Payer pays a positive Equity Amount and "the other party" pays the absolute value of a negative Equity Amount. Also, I believe that Accounting Issue 00-19 is inapplicable to this Total Return Swap or else we may have issues with the "Extraordinary Events" elections. Sara

Subject: "Dabhol -- A Brief Legal Update".

Body: Gentlemen - Following the Dabhol dictate that "bad news is good news," Dabhol is getting some good news this week. As reported in the press, DPC did receive a two-page letter from MSEB purporting to rescind the PPA with immediate effect because DPC materially misrepresented the capabilities of the power plant (i.e., 6 hour actual ramp-up time vs. 3 hour ramp-up schedule in the PPA). However, the letter goes on to state that MSEB is "agreeable to continue the present arrangement of power and payment until disputes are resolved by the appropriate forum." We are not entirely sure what this last part means and are asking MSEB for clarification. Obviously, this letter is quite a buttress to our already-delivered PTN contending that MSEB has evidenced an intention not to be bound by the PPA. While MSEB's letter seems to state that they will still honor some aspects of the PPA, the letter adds that "payments would be subject to adjustments on the basis of determination of reasonable compensation and quantum meruit by a competent authority." We hear rumors that MSEB will approach the Maharasthra Energy Regulatory Commission (MERC) for a "how much should we pay DPC" determination. If they do so and MERC accepts jurisdiction, this would help our expropriation, political force majeure and default arguments. DPC seems to have managed to avoid a construction contractor termination in May by agreeing to extend the required completion date for Block B by 9 days. While this action does not have long-term benefits to the project, I believe that it was a considerable sign of good faith that DPC is trying to give the lenders some time to assess whether they want to begin curing project agreement defaults on an ongoing basis. Bruce

Subject: "Get Your Blazers Tickets (See Instructions) - Mt. Hood, October 29; 11:30 a.m.".

Body: If you work in West Power Trading, congratulations! All West Power Trading employees are eligible to receive a pair of tickets to a Blazers game this season, compliments of Enron. If you are interested in getting a pair of tickets to a Blazer game, come by Mt. Hood Conference Room at 11:30 a.m., Monday, October 29. If you are unable to attend, ask your manager or another employee to represent you in the drawing. We will draw employee names from a hat (or container) to determine the order of selection. When your name is drawn, you can sign up for the date that works best for you by signing your name next to the available date on the signup sheet. You will have one minute to write your date selection on the signup sheet. Guidelines for using the tickets are as follows. - Eligible employees can receive a pair of tickets. - The employee who is given the tickets must attend the game. - Tickets cannot be sold or given away. - The guest can be a friend, spouse, or another Enron employee. - If the employee cannot attend the game, the tickets must be returned to me or Debra. - Any complaints about this process or the guidelines will result in forfeiture of tickets. Call me or Debra if you have any questions.

Subject: "Line Loss Payback Deals - PLEASE READ".

Body:
We'll be paying APS for line losses 7/11 at HE 7. I've entered two deals to cover this - a buy from El Paso (Deal #679653) and a sale to Arizona (Deal #679693). PLEASE ENTER A PRICE INTO THE BUY FROM EL PASO - 679653 - AND NOTE THAT PRICE IN THE EL PASO MODEL. LAST TIME WE PAID BACK LINE LOSSES THIS DID NOT HAPPEN. Let me know if you have questions. Thanks,