Subject: "Optional Provisions for EEI Contract".

Body: Shari Would you please send to Dede and Andy Enron's EEl language re 1. Incorporation of prior trades 2. Market Disruption Language 3. Cover Sheet Set Off Language (set off if $ owed to DP) , including paragraph re no payments until legal opinion Thanks

Subject: "Some Quick Fixes for the Economy".

Body: Senator Gramm, I expect you have already considered these: 1. Rebate surpluses out of the Airline trust fund that is a collection of taxes on airline tickets. This in addition to stopping the taxes would provide needed liquidity to the airlines. 2. Accelerate depreciation, perhaps to two or three years, on all capital goods purchased before March 31, 2001. This would provide a very strong incentive for capital investment immediately. 3. Defer all corporate taxes due for the next six months and make them payable, with interest equal to AFR, over the next two years. This would effectively put the government in the position of lending to corporations at the federal government's borrowing rate. The net effect over two years is neutral, except for potential defaults, but the fiscal impact is significant. Good Luck, we need more public officials of your ilk up there. Sorry that you won't be there much longer. Regards,

Subject: "Master Netting Agreement: Update, Issues, Questions".

Body: We are nearing the "final" form of the document for further use. I have asked Bradford to speak with you regarding use of it for major trading counterparties that may not be investment grade, but with whom Credit sees the ability to greatly enhance our liquidity via netting of margin requirements (not the small accounts). Two issues. 1. Do you think we should write a risk memo concerning the issues surrounding the ultimate effectiveness under the Code and "square setoff" rights? Basically, the intent would be to clarify that if a court did not enforce the close-out netting, and then did not enforce the square setoff, our collateral position on a trading master by trading master basis could be underwater because we would have netted the positions under the master netting agreement for margining purposes. Further to this, the bankruptcy reform aspects of this issue are not moving as previously hoped due to consumer issues and current events. 2. FYI: It has come to my attention this week that Global Finance has consummated a receivable financing, and desires to consummate additional such financings which conflict with master netting agreements in place (as well as setoff language in trading contracts) and with the general concept of master netting for the future. We are meeting tomorrow with Bradford and Global Finance representatives to gather facts, sort through the issues, and try to resolve what appear to be different objectives concerning trading receivables. From a cash perspective, I would think Enron as whole would get more benefit from master netting (dollar for dollar benefit) than loan security (which would never be a dollar for dollar benefit)--do you think this is a correct analysis?

Subject: "FYI".

Body:
Thursday night was indeed a blast. I think my cohorts were ruing my existence by the end of the evening because I didn't have to go to work Friday (wedding in Dallas...very fun). I'm sure you managed to have an all right time in SF as well. I am definitely up for a bucket of beer this week. It's supposed to be sunny and warm all week long and I can think of nothing that goes better with that than cold beer. As for Austin, I have a wealth of information on the subject that I would be more than happy to share. Susan