Subject: "Australian counterparties - Guaranty in connection with ISDA Master Swap Agreement".

Body: I am negotiating an ISDA on behalf of ENA with an Australian corporate insisting upon a legal opinion (enforceability) with respect to the Enron Corp. guaranty. Is this a customary request by Australian corporates that you would normally grant? If so, who has issued the opinion? I look forward to your reply. Regards. Sara

Subject: "Double Transaction Calendar Spread Swap".

Body: Peter: Here is our first attempt at EnronOnline Long Description language for the double transaction calendar spread product. We had to guess at several aspects. Please let me know if we got close. Mark

Subject: "Finance Comm. Mtg. on 2/11".

Body: Rather than hold a meeting to discuss the Finance Comm. meeting scheduled for Monday, Feb. 11, I have asked Laura Valencia to schedule a conference call with Pug Winokur and the three of us to discuss the agenda and the presentation materials. Please watch for this meeting on your calendar, or let me know if you have already been in contact with Pug such that no meeting is necessary. Also, pls. note that the Board and Committee meetings will be held in NYC. If you do not have other reasons to travel to NYC, I suggest you connect via teleconference. Thanks. Paula

Subject: "CA Instrate Gas matters".

Body:
This is to quickly summarize our call on July 11 on California gas intrastate matters and set a direction for future activity. Unbundling: PG&E has a Gas Accord in effect through 12/31/03, which is generally positive. We will participate in the development of a successor plan, and attempt to improve it if we can. SoCalGas attempted its own version of a gas accord, but the CPUC refused to approve. We will attempt to resurrect this accord and obtain CPUC approval. Hedging: No proceeding currently exists to address gas hedging by LDCs. (draft legislation does exist on the electric side to allow hedging and passthrough of costs). Jeff has recommended that we approach the LDCs to begin discussing the issue and developing a strategy to take to the CPUC. I suggest we develop an ENA-EES hedging proposal for CA and then take that to the LDCs. I will attempt to put this is writing. Infrastructure: CPUC has undertaken a proceeding to determine the need to improve infrastructure. SoCal Gas and PG&E are responding with proposals. We want to revitalize the infrastructure and ensure real markets exist and can develop. Our task is to participate in these proceedings. (Please let me know who I left off the mailing list).