Subject: "Conference Call with Houston".

Body: Houston has requested we sit down with them on the phone and go over all the in-the-money contracts we have. By their count we have about 50. They want to account for each and understand why we may not be delivering on them. Ed Baughman will be sending his master list in advance of a 11:30 call in Mt. Bachelor. Please send at least one representative from each of the regional desks to discuss the list. Thanks,

Subject: "June EPE Buy-Resales".

Body: Holden & Lisa - Per Holden, I've changed deal 630176 from a price of $170 to $197. Terms and reasons are as follows: 6/4/01 STSW buys EPE 49 mw/HLH The other side of this deal is a sale to El Paso for $204. Kathy questioned the invoice she received from Houston this month, because the breakdown of transmission costs and fees we had given her (regarding buy-resales done by your desk on 6/1, 6/2, and 6/4) amounted to a spread of $14.06. The deals we entered into our system, and subsequently billed El Paso for, amounted to spreads of $14.06 for 6/1, $11.06 for 6/2, and $34 for 6/4. To remedy this, and extend a gesture of apology for the mistake, we've changed our buy from El Paso on the 4th to a price of $197, leaving a spread of $7 to cover our transmission costs. I've explained this to Kathy at El Paso and Amy in Settlements, and wanted to give both of you a record of the change as well. Please let me know if you have any questions. Thanks,

Subject: "Meeting in BA".

Body: Pablo: I am forwarding this message that I send to Patricia last week. She may be out of town or otherwise engaged. Would it be possible for you (or someone else in the firm) to respond to my two questions? I only need a short explanation. If you need to reach me, my telephone is (713) 853-5620 and my fax is (713) 646-3490. Thank you for your assistance. Regards. Sara

Subject: "New ET&S Law Objectives".

Body:
Here's one for you to chew on for awhile. As we approach the transition to a new organizational structure in ET&S, let's rethink the role and competencies of the legal department. I'd like each of you to answer the following questions and circulate your answers to me and each other. To avoid having anyone's answers unduly influenced by anyone else's, please send your responses at 12 noon on Thursday. No, this isn't being graded, and doesn't affect the PRC process or any other process. I just want to get access to as much original thinking as possible. 1. What is the ET&S law dept. currently best at? (give one example). 2. What is the ET&S law dept. currently worst at? (give one example). 3. Without regard for any past objectives, what should our top 3 objectives be? (make these very specific--objectives like "We should manage legal and