Q: While recent events have dramatically impacted Enron's travel volume, Alliance Worldwide (formerly Travel Agency in the Park) wanted to contact you regarding the Enron Travel Program. Since 1984, our company has been a strategic business partner with Enron and has provided a complete scope of services from booking, ticketing, ticket delivery, customer service, reporting, management of ClickTrip, to facilitating preferred vendor arrangements with airlines to benefit Enron. These services have been provided on a management fee basis from Alliance to Enron. As of December 1, 2001 the management fee has been suspended during Enron's period of reorganization. We are continuing to provide the turnkey travel services to Enron and forego the management fee and simply charge a time of ticketing fee per ticket. To provide you with a brief history of our arrangement, Enron and Alliance approached the airlines a couple years ago and negotiated deep upfront discounts for Enron's business travel. These discounts are available only through Alliance and are given at time of ticketing. All commissions were stripped from the price of the discounted ticket and returned to Enron, in exchange for Enron paying Alliance a contracted management fee. This management fee was paid monthly and allocated back to each Enron cost center based on the total number of transactions. This travel program provided Enron over $8.6 million in airline savings on $55 million spent in the year 2000 and over $5.2 million on $33 million spent for the first 3 quarters of 2001. These savings are after the payment of the travel agency management fee. The effect that the reduced travel volume will have on discounts provided by the airlines cannot yet be determined. We have contacted the airline companies and most of Enron's preferred carriers have agreed to extend the contracts through April 2002. You may utilize these discounts through Alliance by calling 713 650-8080 or 1 800 962-0248. In March, Enron and Alliance will begin evaluating Enron's volume and travel patterns, and determine any changes that are to be made to the discounts or fee structure. As mentioned earlier, Alliance is implementing a time of ticketing fee in lieu of a management fee. These fees are reimbursable to Enron employees through normal expense report procedures. Specifically, the new fee structure is based on zero-commission contracts for tickets purchased from Enron's preferred carriers. The fee schedule for all airline tickets for Enron travel is as follows: $30 - Domestic tickets with or without upfront discount $30 - International tickets without upfront discount 25% of Savings, capped at $175 - International tickets with upfront discount $15 - Southwest Airlines and ClickTrip Reservations, Hotel/Car Only Bookings The savings to Enron on a per ticket basis more than covers the nominal fees that are charged. For example, Enron's average ticket prices are $589 domestic and $2207 international (after discounts). Enron's average savings are $144 domestic and $587 international (before fees). The savings are more than three times the per ticket fee!
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A: Travel Services

Q: Pursuant to our discussion yesterday regarding the above, please find below for your consideration a suggested revision to MAC/Credit Rating trigger definition to used in all future master trading agreements or confirmations in which Enron Corp's credit rating is part of a MAC/Credit Rating trigger. "Material Adverse Change" means (i) with respect to [Enron Trading Entity], Enron Corp. (or its successor or its successor's parent company) shall have long-term, senior, unsecured debt not supported by third party credit enhancement that is rated by S&P below "BBB-" [also insert Moody's as appropriate]; I understood yesterday that we may also need to consider changing the definition of Credit Support Provider in the ISDA's. I suspect that if "Credit Support Provider" is defined as Enron Corp. in the relevant Master, then the corresponding changes noted above would also need to be made. Your further thoughts regarding this issue are welcomed. Please provide me your comments to the above language by tomorrow so we can start implementing a revised definition in our agreement templates. Regards, Alan
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A: Draft of revised definition of Material Adverse Change/Credit Rating Trigger

Q: Mark and Jarrod: Regarding this project of streamlining weather confirms, Shari asked about the new language that we were gong to use to define the procedures for determining the Fallback reference Weather Station. Has that language ever been finalized? This is one of the things that I thought we could pull out of the confirms so before we send out any Master Agreement amendments, we should try to get this language finalized. Carol
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A: Fallback Reference Weather Station

Q: market_relations@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List: Dear Market Participants On October 17, 2001, the NYISO web servers will be upgraded. This will require both software and hardware changes. While these changes will be transparent to the users, these changes will require that the MIS system be unavailable for approximately 60 minutes. The outage will begin at approximately 11:35 AM. Market Participants planning on submitting HAM transactions or modifying Day Ahead bids should act accordingly. The NYISO will minimize the duration of the outage as much as possible as we recognize the inconvenience caused by system outages. Ultimately, these changes will result in a more stable environment and provide enhanced services that the current web servers are unable to perform.
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NYISO - MIS Outage - October 17, 2001 - Reminder Notice