Q: Jeff, I'd like to discuss with the head of your wholesale energy/commodities trading and marketing unit. We're actively engaged with VP-level and Director-level executives of trading and marketing and risk management at Williams, Duke, Reliant, Sempra, and many others. They claimto miss outon 75-80% of the arbitrage trading opportunities. We're working with them tohelp spot those lucrative spreadsand maximize trading opportunities. iSpheres provides enabling software for deploying meta applications around composite event managementdeveloped out of Caltech. We are working to enableevent management for traders. Enabling traders to define composite events around online marketplaces, weather, generation, transmission, and other information. The issue weaddressis enabling traders to synthesize all the information and detect what is actionable. Huge opportunity and payback. We'd liketo discussour capabilities,understand what problems types you are working on, and where we might be of value. We'dlike to arrange a one-hourintroductory conference callor meetingwith the appropriate executive/s at Enron Wholesale Trading & Marketing. Who would you recommend? Please advise. Thanks,
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A: request for appropriate trading contact/s - Caltech-developed arb itrage technology being assessed by Reliant Energy

Q: The end is in sight! The break out contracts for the TurboPark LM's need to be finished up (not news to anyone). Each of these agreements will be between GE and E-Next Generation LLC (DevCo) and GE, unless the project company is already owned by DevCo. I suggest that each agreement reference be the same as the original, with an adder which makes it clear which project it belongs to (LVCG, FV, CISO1 and CISO2, for example). Al, your contract needs to be fixed up. Please contact Pete Thompson at AK in DC to get it rolling, if you haven't all ready. 212 662 2780 Pete, the CA Development agreements should now be in the name of E-Next Generation LLC. For indentification purposes we can call the contracts CISO1 and CISO2. Thanks,
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A: LM 6000 breakout contracts

Q: Jeff, Contract management has become a big issue in most Fortune 1000 companies because of the risk to market capitalization that obligations in corporate contracts pose. I think that Enron executives would be very interested in the articles hot linked below. I would be glad to spend time with your organization to investigate the impact of enabling contract management best practices at Enron. diCarta provides the first web-based contract and revenue management solution that enables businesses to negotiate, track, manage, and renew contracts via the Internet. We have had tremendous success in helping companies like Kraft, BEA Systems, Intuit, Agile, Ernst&Young, Deloitte Consulting and many others gain visibility into their contracting and revenue management processes while mitigating financial and legal risks. Below is the diCarta solution overview then links to recent articles including our partnerships with Arthur Andersen and Deloitte. diCarta's Focus: diCarta Contracts automates your entire contract lifecycle including negotiations, execution, revenue management, maintenance, and renewals on both the sell-side and buy-side. Your complete contract information will now be in one central location, on-line, for down-stream revenue, obligation, and renewals management. This is enabled by a direct link of the unstructured data in the contract to structured data, which allows you to take automatic actions based on the actual contract Ts&Cs. To maximize communication and efficiency, diCarta Contracts was specifically designed to be a collaborative application using role-based security. E-signatures are supported as well. Negotiation: You can negotiate contract Ts&Cs on-line with an internal approval workflow to manage risk. Not only will you shorten your quote-to-cash cycle, but reduce your legal and financial risk by having on-line visibility into what Ts&Cs you are approving before the contract is executed. Revenue Management: On the sell-side, you will have a framework for revenue recognition per the FASB and SEC guidelines that is driven directly from the contract Ts&Cs. Now you can manage your revenue recognition risk, significantly reduce labor, and avoid possible non-compliance. This is extremely important as companies struggle with adherence to SAB 101. On the buy-side, you can proactively track expenditures.
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A: SAB101/Contract Mgmt. Best Practices

Q: Just to follow-up on our discussion yesterday regarding the accounting treatment assuming that USTeleNet owns the switch and that we purchase the switch and lease it back to them under a "capital" lease, the following would occur: The asset would stay on their books (however it would be "marked-up" to FMV as evidenced by the purchase price) They would defer the gain, if any, over the asset's life. They would record a payable on their balance sheet and recognize interest expense in their P&L as payments are made We would record the payment of cash to them and book a receivable and deferred interest income (to be recognized over the lease term) Essentially we are lending them money equal to the FMV of their asset and receiving interest payments in return (i.e. direct financing lease) I would be happy to go into more detail at your request. Please let me know as issues develop and I will assist as necessary. Regards,
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A:
USTeleNet Transaction