Subject: "Frontera for hour ending 7 tomorrow, 9/21".

Body: For tomorrow, see the attached schedule. This is what is communicated to Frontera. The mw value at the top of the page indicates what their total generation should be by hour. The Resource Plan shuold be identical to this row. Row 5 mirrors the purchase from Frontera in Enpower. The Mirant call and Enron's call (Ercot Asset Book - 100 mw's) are listed as well as any daily trades executed on behalf of Frontera. Please familiarize yourself with this report The top line will indicate how much power is available for bal-day sales, etc. Additionally, the Resource Plan needs to accurately reflect to Ercot what the plant is capable of. For example, if we are generating at the maximum of 450 mw's, we need to reflect that the combined maximums on units 1-3 do not exceed this amount. Otherwise, Ercot thinks they can OOM you up. Specifically for tomorrow, please note that we are going from 135 mw hour ending 6 to 250 mw's hour ending 7. The plant doesnt like to do this. A 200 mw schedule would be much more preferrable for this ramp. So either : 1. purchase 50 mw's from RT market for he 7. Change Resource Plan to 200 mw's for hour ending 7 only. Put purchase from in Teco Services book. Make another corresponding sale to Frontera counterparty in the Teco Services book. If you dont make the second entry in Enpower the Teco Services book will be long for hour ending 7. 2. have plant drag and buy imbalance - they will call to make this decision. No entries will be needed. Call if you have questions. JMF

Subject: "Land Sale".

Body: Attached is a revised version of the Act of Sale and a redline of same compared to that which we sent to you earlier today. Also attached is a revised Guaranty both clean and redlined and a form of Nonforeign Status. The Act of Sale contains changes to the restriction language. Draft resolutions to follow tomorrow. <<GUARANTY.DOC>> <<GUARANTY BL.DOC>> <<Act of Sale - Clean Draft 2- Reliant.DOC>> <<ACT OF SALE - CLEAN DRAFT BL BASE 2.DOC>> <<Certificate of Nonforeign Status.doc>> - GUARANTY.DOC - GUARANTY BL.DOC - Act of Sale - Clean Draft 2- Reliant.DOC - ACT OF SALE - CLEAN DRAFT BL BASE 2.DOC - Certificate of Nonforeign Status.doc

Subject: "Legislative Update".

Body: Earlier this year, the Joint Legislative Audit Committee instructed the Legislative Analyst to prepare a fiscal and policy analysis of the California Power Authority. That report was released today during an informational hearing. I have forwarded a copy of the report to Jeff. I will forward a brief overview by facsimile to San Francisco, Houston and Portland. The highlights of the report are as follows: The focus of the CPA has shifted dramatically since its inception. The CPA originally focused on purchasing peakers whereas it is now focused on DSM. There are several areas that may warrant additional legislative activity: Provide legislative oversight Establish a mechanism for using revenue bonds Clarify the CPA's eminent domain authority Clarify the power of the CPA to invest in transmission Clarify the relationships between all California power agencies In addition, I spoke to Energy Committee staff today about next year's possible activities. In their estimation, the Legislature may be forced to address some of the items in the LAO report regarding the CPA. In addition, they have to do something regarding the bonds because SBX2 18 was never sent to the Governor because of his threatened veto. They expect no bills authorizing grants or incentives due to the state's budget crunch. Senator Bowen is still interested in DA and green DA, but they see this as a second tier item. The future of DA will be dictated in part by how the CPUC addresses the undercollection.

Subject: "Reports".

Body:
Kam, I need your help on something. I am trying to compile a listing of all reports that were being run by the Risk leads and Specialist on a daily basis for the estate. If you could please give me a general idea of the daily reports that you know of, I would greatly appreciate it. I am doing this to ensure that we don't skip or miss anything that was being done on a day to day basis for the estate. I will take what info you give me and forward it on to Greg Couch so that he will be aware of all reports that needs to be ran daily. Thanks