Subject: "First Union National Bank ("FUNB")/Enron Corp. ISDA Master Agreement".

Body: Tanya: For purposes of "Transfer", shall we permit both parties to transfer to Affiliates? Would FUNB require a guaranty? Or do we feel strongly that neither party should have the ability to transfer except with the written consent of the other party?

Subject: "Afterthought".

Body: Also, if you have any paper work on the "promotional funds" contract it would be good to see. I can't remember if it is a one time payment or yearly or a lump sum over a term. I want to make sure that obligation goes with AEP and its one of those "deals" that could have fallen in the cracks.

Subject: "CITY OF HOMESTEAD NEW ACTING DIRECTOR OF UTILITIES AND CONTACT/F.Y.I.".

Body: The new ACTING DIRECTOR OF UTILITIES and CONTACT at the City of Homestead is Ken Konkol same address and phone different extension. The new Phone Extension is # 619. Please take note for future correspondence and contact. Jim Swartz has retired.

Subject: "Pueblo".

Body:
Got a call from Dennis out of the blue this afternoon. He's pretty gung ho, and also alluded to several other projects he's got on the front burner (gas-fired power deals). He had met again with some DOE folks in DC about the power contract and feels it is 70-80% locked in. Have you ever known a project developer who would admit to less than 70-80% odds??? I look forward to talking on Tuesday. DF