Spreadsheet: kay_mann__19266__Business Status
Sheet: Sheet1

 | Midwest Energy Hub L.L.C.
 | Business Items
Lead | Project | Description | Status
 | Legal Documents
 | Hub Agency Agreement | MEH - PGL. MEH agent for existing PGL Hub. $50,000/month admin fee, 20% of profits.  LLC termination at either Member's election after June 25 if no executed agreement.  Needs to be submitted to ICC for approval. | Met 6/14.  Made significant progress on legal and commercial issues.  Enron counsel turning next draft on behalf of MEH week of 6/19.
 | PERC Peaking Agency Agreement | MEH - PERC. MEH agent for PERC Peaking facility. Share profits equally (Enron/Peoples Energy) beyond transfer price. | No draft yet. Peoples will prepare first draft.
 | Transfer Price Side Letter | MEH - PEC.  Transfer price arrangement for Enhanced Hub Services. | Evaluating multiple alternatives for documenting transfer price.
 | Third Party Master [NAME] and Sale Agreement | MEH - Third Parties.  Preferred agreement for physical transactions. | Peoples and Enron counsel working on form of agreement.  [NAME] financial statements and parent guarantee information.
 | GISB Agreement | MEH - Third Parties.  Agreement for physical transactions with third parties that won't execute Master [NAME] and Sale Agreement
 | ISDA Agreements | MEH - Third Parties.  Agreement for financial transactions. | No draft yet. Peoples and Enron counsel will work on form of agreement.
 | Affiliate Master [NAME] and Sale Agreement | MEH - PGL. Blanket filing with ICC for physical transactions. Individual transactions will be attached as confirmations. | Draft agreement prepared by Peoples.
 | Confidentiality Agreements | CA's for employees working in the LLC. | Enron counsel presented draft CA to Peoples.
 | Policies and Procedures
 | Risk Management Policy | Overriding risk policy establishing limits, notifications, approved traders, etc.  LLC termination option at either Member's election until approved. | Turned draft to Peoples.  Conference call with Peoples on Wednesday, 6/21.  Peoples to turn redraft this week.
 | Risk Procedures and Control Guidelines | Transaction process from deal inception to collection of receivable.  LLC termination option at either Member's election until approved. | Preparing document for presentation to Peoples.  Working with Peoples and Enron support teams to document process.
 | Credit Policy | Approved counterparties, credit limits and ongoing credit process management.  LLC termination option at either Member's election until approved. | Exchanged drafts with Peoples.  Credit meeting set for 6/29 in Houston to discuss procedure and methodology.
 | Administrative
 | Setup and fund bank account | Establish LLC bank account and make initial funding of $100,000 each. | LLC account has been setup at Citibank.  Expect funding to occur closer to operational date.
 | Cash management | Establish cash management procedure for LLC.  Enron to manage working capital needs under revolver arrangement. | Enron cash management proposal being finalized this week to present to Peoples.
 | Accounting | Establish financial reporting, including variance explanation, process, resolve any MTM issues, document audit procedures, etc. | Several meetings have been held.  Audit process needs clarification.  Other items need confirmation.
 | Tax | Confirm tax treatment of LLC given anticipated business processes. | Need final tax review once business processes have been established.
 | [NAME] | [NAME] to conduct business in Midwest states. | Completed in Illinois.  Need to verify status of Indiana and other any states.
 | Marketing materials | Prepare LLC marketing materials describing business, products and potential contracts. | Obtained and reviewing competitor materials.  [NAME] to coordinate effort with MEH marketing representatives.
 | Final name of LLC | Decide if LLC will retain MEH name or change before contracts, marketing materials, etc are prepared. | Evaluating potential options for marketing value and legal availability.
 | Marketing representative handout | Section 6.7.2 (c) of MEH Operating Agreement.  Restricted activities for marketing reps. | Need to prepare.
SR-CC | Prepare schedules A & B | Section 6.7.2 (d) of MEH Operating Agreement.  Grandfathered transations. | Schedule B (Peoples) - accumulating and summarizing deals on PEC side for initial draft.  Waiting for PGL response on certain transactions.  Schedule A (Enron) - Need to prepare.
 | Appoint officers, Commercial Development Manager, Business Development Manager, alternate Board Members. | Need to put names with titles in MEH Operating Agreement.  Determine need for officers and appointment of alternate board members. | Need to complete.
RT-SR | Audit existing book of business | Enron review of PGL hub and PERC transactions outstanding to date.  Peoples review of Enron MW transactions (NSS). | Summarizing details of existing PERC and Hub deals and proceeding with Enron personel via Houston to input into Enron risk management system.
 | Assess value of underlying assets | Examine rights and associated value of underlying assets, MTM issues, limits, etc.
 | Initial Budget | Prepare operating budget and related marketing and operating plans by August 1st per MEH Operating Agreement.  Determine cash flow requirements of LLC.
KR-PB | Back Office/Booking | Confirm readiness of back office functions to support transaction processes. | Deals are in Enron systems for NSS, ITS and EMW hub activity.  Ready to work with the accountants to recognize P&L from our books.