This is the content of an email: As you probably know, FERC yesterday issued an order that largely granted the joint complaint that was filed by Mirant and Reliant in regard to ISO's preferential treatment of CDWR. Attached is a copy of the order, in which certain relevant passages from the order have been highlighted for your convenience. I hope that you and your families all have a wonderful Thanksgiving! Dan

Subject: FERC Order on Mirant/Reliant Complaint

This is the content of an email: I have asked ENA's Compensation team within HR to conduct a compensation study for me for all positions from Manager level through Vice President. This analysis will include employees who are dedicated to ENA, EIM and EGM. It had been the plan to complete our compensation analysis by focusing on the Manager level and above, following the market analysis for Senior Specialists and below that was completed by Yvonne Land. I learned recently that Yvonne has left the Company and that she had not begun the analysis for Managers and above. Todd Burke, who recently joined Enron, will be conducting the market survey and compensation analysis. I met with Todd recently. He has had wonderful experience with Towers Perin and Watson Wyatt, and I feel that we are fortunate to have him devoted to this project. Please give sufficient thought and attention to requests from Todd. The quality and timeliness of your responses will directly impact the quality and timeliness of the analysis that I will receive from Todd. I think that you should each have a vested interest in the success of this project! Todd also plans to resurvey market information for Senior Specialists and below so that his view of compensation will be complete and timely for all of Energy Operations. Since we recently took action on compensation levels for key players at the Senior Specialist level and below, I would not anticipate further adjustments for those levels as a result of Todd's review. You should receive a message from Todd in the next day or so in which he will detail steps in the compensation analysis and what your role will be. Sally

Subject: Compensation Analysis

This is the content of an email: Sean: I have been looking at the -$141K P&L hit in "Other Changes" on 8/13/01 you were inquiring about. The biggest "contributor" of this hit is the restructured Modesto deal # 520328.3, which alone caused -$130K in Other Changes (a.k.a. 2nd Order in financial terms). I believe what happened is that Matt re-marked the daily volatility curves down by a significant magnitude on 8/13/01 (* please see curve managers for the change). Usually when volatilities changed drastically they would disrupt financial evaluation models and more likely to cause a change in deal value by factors which cannot be explained (i.e. Second Order). This doesn't necessarily mean that the evaluation is incorrect but just that there will be some value change for which the models cannot pinpoint the reasons. Anyway, for this basis option deal you lost $94K on 8/13, and this -$94K can be broken down into Curve Shift (-$19K), Gamma ($1.5K), Vega (70K), Theta (-16K), and Second Order/Other Changes (-$130K). I looked at the curve change and interest rate change between 8/10 and 8/13 and they are relatively insignificant, but the drastic volatility mark down makes me feel that your losing money in this deal is somewhat consistent w/ what we should expect. I am still working with IT to see if we can nail this down to give you a more specific explanation. In the mean time, if you have any thoughts or concerns, please feel free to let me know. Thanks,

Subject: -$141,000 P&L hit on 8/13/01

This is the content of an email: Hi guys, Here's a list of questions as I'm working through MDEA. Actually, some are questions, some are reminders of things you were going to send me: Receipt Point - need def'n RR Load info - I was going to plug in something, or we were going to have an exhibit to describe. RR Off peak defn - RR transmission - we've added transmission services, but it isn't defnd. Any suggestions? scheduling equipment - do we want to refer to the list? term - previously I was instructed to take out the evergreen renewal, now is it back in? If so, is the mechanism in the first draft ok? contracted resources - I've added in a def'n - we need a schedule. Name, date, subject matter of contract. More questions to come, but I wanted to get this to you asap. Reagan, you might want to look through the comments you gave me for more open items. Thanks!
Subject: List of questions