This is the content of an email: Today, The American Coal Company paid Enron $113.5 million in principal and interest, which included a prepayment of the remaining $110.7 million balance on its debt with Enron ($75.7 million Senior Note, $35.0 million Subordinated Note). These two notes, with maturities of July 2004 and July 2008 respectively, were established in July 1998 to provide financing for the acquisition of the Galatia Mine by Bob Murray. Despite the termination of the credit relationship, the physical relationship remains in place through December 2006 with projected deliveries of 1,900,000 tons of Galatia coal and 1,200,000 tons of Maple Creek Coal. The value in the remaining coal, supported by puts and fixed price arrangements, is in excess of $25 million. Beyond the value in the transaction, this deal, along with the DPR transaction with Cline in 1998, provided the foundation for Enron's coal business. With this prepayment, Enron has now received over $250 million from its coal investments. The breakdown of the funding and cash flow is shown below: Approved Commitments $275 million Funded Commitments $271 million Enron Funding (Net of Calpers) $240 million Enron Cash Flows Principal $188 million Interest $ 44 million Equity Distributions $ 8 million Marketing Fees $ 7 million Margin on Physical Coal $ 3 million Total $ 250 million In addition to the cash flow received to date, the investments are projected to provide minimum future cash flows as follows: Principal and interest $ 20 million Loans secured by assets Marketing fees $ 39 million Minimum marketing fees Coal commodity margin $ 25 million Value of American Coal physical transaction Equity distributions ??? 42% interest in Dakota & Remington 20% interest in BMR Total $ 84 million + equity distributions

Subject: The American Coal Company $113 Million Debt Prepayment

This is the content of an email: Carolina Power & Light and Florida Power Corporation submitted tariff revisions in compliance with a Commission order addressing the energy imbalance provisions that apply in CP&L's zone. The proposed revisions include: - return-in-kind provisions for energy imbalances - deletion of the separate capacity charge for undersupply of energy outside the deadband for 10+ hours in a month - a provision that deficient energy will be offset or credited with energy associated with spinning and supplemental reserves. Interventions/protests are due Aug. 15. If you would like further information please contact me. Susan Scott Lindberg x30596

Subject: CP&L tariff changes (ER01-1807)

This is the content of an email: Chris, I have reviewed the contract forwarded by Susan Spalding and have made my suggested changes which are based on the language required by the Credit Group. Please review these changes which are noted in the red-line version that is attached. If you agree with my suggested changes, let me know and I will forward to Susan Spalding for her consideration.

Subject: Smurfit-Stone new contract

This is the content of an email: John thought you might be interested in the following from the credit markets.... Play by play during the call on the 5yr Enron Credit Default Swaps from Morgan Stanley: 1. 5Y BIDS GETTING HIT ON OPENING AS EARNINGS NEWS LOOKED LIKE CLEANING HOUSE. 250. 2. DURING THE CONFERENCE CALL; WHICH APPARENTLY WAS UNCLEAR, TICKED OUT 255,260,265. 3. LAY INDICATED NEAR END OF CONFERENCE "NO RATINGS ACTION ANTICIPATED". MINUTE CONFERENCE ENDED MOODY'S WATCH NEWS RELEASED. 280 BID. 4. LAY ALSO MENTIONED 3Q NEG CASH FLOW DUE TO SOME CONTRACT ROLLOFF. UNCLEAR MESSSAGE. 5. ENE SAYS COMMITTED TO "INV GRADE" RATHER THAN "A" 280/325 Summary from Morgan Stanley after the call: CREDIT DERIVATIVE UPDATE: ENRON CORP AFTER THE NEWS THIS AM ($1 BIL. CHARGE), THE COMPANY HOSTED A CALL AT 10AM NY TIME. THE CALL DID NOT GO WELL & ENRON SPREADS ARE HEADING WIDER IN CREDIT DERIVATIVE LAND. MKTS ARE SPOOKED B/C: 1) MOODY'S WATCHLISTED CO NEGATIVE, 2) ENE STATED "THEY ARE COMMITED TO INVESTMENT GRADE RATING," WHICH IS A CHANGE FROM THE SINGLE-A BOGEY THEY ONCE EXTOLED, 3) CO. DID NOT ADDRESS ALL LIQUIDITY CONCERNS, AND 4) MORE CHARGES COMING? 5YR MARKETS: ENE (PRE-WTC): 165/185 ENE (8AM TODAY): 240/260 ENE (WEEK AGO): 250/300 **ENE NOW: 275/350 Clearly the above are a function of what people think they heard...I did not alter any of the email. In general MSDW likes Enron credit but this is how they see the market. Enron is one of the most actively traded names in the credit derivative market. Let me know if you want updates as the market gets more clarity and works throught the details
Subject: reaction from the credit markets on the earnings call