IN: This is an email
Jim Speaking with Don Miller last night he has indicated that Jeff McMahon would like to secure our membership and ongoing participation in NEPOOL and possibly other Pools, and is prepared to make cash available through the Cash Committee. While we discussed a number of options, the starting point is to identify the contracts that are in the money to EPMI and which have not yet been terminated. The long term deals that we have been looking at in NEPOOL are NSTAR, UI and CMP. We are getting closer to an acceptable internal valuation of these and need to get a "robust" number that we can defend in order to release cash from the Cash Committee. The three main cash related issues we need to address as I see it in the short term are: (1) We must provide NEPOOL with the comfort, possibly even in the form of a pre-pay, that we will pay our invoices for November, especially since the bonds we posted terminate on 29, December (2) We must provide cash collateral immediately and (3) We will need pay our NEPOOL invoices over a two, or possibly, one week period to reduce NEPOOL's exposure to EPMI. This creates cash flow issues as we are only paid monthly by our customers. With the one way payment issue we are facing with NSTAR and UI there is clearly little incentive for them to re-negotiate their contracts. Turning to point (2), it is not clear to me whether we will be able to post the $137,390,360.10 and I will assume that we will not get the authority to post this but a lesser amount. In trying to provide NEPOOL with comfort as to their exposures it may be that we can get them to agree that for the foreseeable future we will only be serving certain contracts and that the collateral requirement be based solely on EPMI serving those contracts. I am not confident however that NEPOOL has the authority to what is in effect change the Financial Assurance Policy for one Participant, without approval of all Participants and approval of FERC, but we can explore this with them. If the price of energy, ICAP and other services moves up then EPMI should be given a reasonable period of time to post further collateral. That way we can hopefully reduce the initial amount we post and if the price moves up we can elect at that point whether to retain our membership or relinquish it. While EPMI will be taking market risk, which ill not be hedged, it will have the ability to stop performing f the price moves against it. It should not be forgotten that both the NSTAR and UI deals are one way payments and there is no time limit as to when either of these counterparties can claim a default due to EPMI's bankruptcy. The effect of this being that we are at risk from a termination by these two counterparties at any time and since we are currently the "Defaulting Party" we would not receive any Early Termination Payment. CMP is a two way payment and therefore there may well be some merit in entering into a term energy purchase deal to lock in value to this contract. I am not aware of what EES is trying to do with NEPOOL, or the other pools in the North East, however I thought it would be helpful if they knew what we were trying to do and why. Any input as to what EES is doing and any merit in a joint approach could be explored if both companies considered value could be achieved. Finally, the recipients of this email will hopefully know of other people, for example in credit, scheduling and settlements who could assist in ensuring that we can accurately value and schedule the contracts we would like to continue performing under, please pass these on to Don Miller who is coordinating this initiative. Regards,

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OUT: NEPOOL

IN: This is an email
Rick, I want to bring Aram Sogomonian back to Enron at s VP level. According to new human resources procedures this decision requires a support of three senior executives. I want to ask you to express your opinion on Aram (based on a phone interview or just on your past interactions with him). You can send a reply to Norma Villarreal at H/R. Thanks.

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OUT: Hiring Aram at a VP level

IN: This is an email
John, We have discussed i2 in the past but we need to take some action steps to make decisions and move forward. Here is what I want to see done in short order. Meeting with all key technologist on the full suite of products and functionality with complete demonstration by i2. I would especially want PB, JP, BP, HE, and JG from George's group. Follow-up meeting (after the technologists see functionality and form opinions and possible applications) with key commercial leaders: GP - P&P; TG - CommodityLogic; BG - Metals and steel; JF - New Markets and Investments; AS - New Markets and Bus Dev. During that meeting, we need to have some real players with i2 there to brainstorm and discuss business expansion opportunities in the specific verticals. It would be good to actually have this meeting in Dallas but I am concerned about attendance. i2 owns the process and supply/downstream management in these industries and we need to really look to see if our combination can accelerate our new efforts and solve any logistic issues. Put together an action plan. George's group has already put a presentation together about i2, the products and possible applications. George, please sent that to John. I would like that document to be our updated business plan for i2 to be used as a "living" document as we move forward. Assign someone to make and co-ordinate the use and full deployment of those products (utilize our $10 million spend). I want someone to have the responsibility for i2 and he or she can also work with EBS on what they are doing also. To be clear, we have spent the $10 million already but are not using the products. I want to deploy all (if possible) and make this investment fully utilized. I do understand that we don't drive businesses around a pre-purchased product but we should look at is as a sunk cost and rationalize why we shouldn't use if rather that simply considering it as an option. Jason Robert, (469) 357-6737, was at the dinner with Sanjiv, Greg Brady, Jeff and Greg and he knows some of the mutual objectives. He would be the guy to work with and set it all up. EBS should be involved as well. Rex Shelby is spending a lot of time with i2, weekly visits, and should also participate and use their products as well. Is there an application for all of EES and their business? Remember, Ken Lay is considering joining their board and we should be able to give him very clear insight on their products and how their company works. PB, if you want someone outside Pavetto's group to work on this that is fine but i want to understand the background and how they will make this happen. Thanks and please let me know your initial thoughts and timing. If you need to have me send out an email to make sure that everyone understands the priority, please draft up and I'll send out. Mike

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OUT:
i2