QUESTION: Dear Ken: This note builds on the earlier voice mail, and a memorandum I have sent to you, following the Dave Dorman meeting. Given the initial ground work done by our team at ATT leadership level, the meeting between Jeff and David Dorman, we think did go as expected by us. I am sure Dave and Stewart, along with Jeff have shared their views of the meeting, and do feel positive about the process forward. Our take on the meeting is as follows: 1. Dave Dorman is open and eager to explore ways ATT and Enron could cooperate across the board. 2. Dave wants to move fast, but at a pace that will work within ATT, and is strategically sound for both the organizations 3. He is now looking forward to specific value propositions from Enron-Adventis team, which he is prepared to discuss with us. 4. On that basis I am sure he will guide us to the most appropriate guys within ATT who will need to understand and act on the value propositions. In view of the above the real work begins now. As discussed with Dave and Stewart, we will further reinforce our commitment to develop, and take the basic proposals with ATT forward. Our team is already on the job and will meet with Stewart early this week. I did indicate to both Dave and Stewart that we will like to take the next steps in a most expeditious and matured fashion so that all the strategic possibilities to create the new bandwidth dynamics between the two companies could be achieved. Given that there were some hesitation within Enron on the out come of the first meeting with ATT, we committed to the last 2.5 weeks of work with a reduced fee structure. Now that the first major step has been successfully taken, we plan to work with you along our normal professional fee schedule. As we do want to move as fast as possible and if at any point indications are that the desired out come will be difficult to achieve we could stop and review progress. As a result, although not common, we are willing to work with a weekly rate, adjusted to professional fees of $75,000/week and out of pocket expenses. In addition of course for an engagement of this nature which essentially leverages our firms professional credibility and trust in the industry, our clients pay us on the basis of successful execution of the alliance formation along preset milestones. Given the strategic nature of this engagement, and our commitment to assist you with all the major Telcos, -- incumbents and new, we will welcome to
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ANS: Moving forward: URGENT, URGENT.

QUESTION: I got a call from the Lower Colorado River Authority today asking us if we would like to put a power enabling and ISDA Master Agreement in place with them. I spoke to Liz Sager and it appears we have already done a physical power trade with them. Of course, we can still not do financial trading until we run through all the hoops with them. I don't know who you directed your marketing package to, but he wanted some information on online trading and I said we would send him a packet. Richard Ramirez Fuel and Energy Risk Management Lower Colorado River Authority 3701 Lake Austin Boulevard Austin, Texas 78703 Thanks!
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ANS: EOL-Lower Colorado River Authority

QUESTION: The attached schedules have been generated with adjustment factors to reflect apparent over-estimation of customer loads, based on an analysis of EES meter data by Tim Coffing and on comparisons of past metered loads to previous forecasts produced. The impact of the adjustments lowers load totals by averages of approximately 100 mW in the NP15 zone and another 50-60 mW in the SP15 zone. These adjustments, which will continue to be refined with further analysis, have been discussed with Tim. Please call if you have any questions regarding these changes.
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ANS:
EES CA SCHEDULE for 12/16 and 12/17/01