ERMS Discount Memo as of May 25, 2001

To all:

The current model is discounting the financial contracts improperly. The financial contracts based on a contract month is being discounted an extra 50 days on average. We are currently working on a process to correct the model by next month.

Please call me or Chris Abel if you have questions.

Thanks
Anita

---------------------- Forwarded by Anita Luong/HOU/ECT on 06/01/2001 02:50 PM ---------------------------

Anita Luong 06/01/2001 11:38 AM

To: Sally Beck/Enron@EnronXGate, Scott Earnest/Enron@EnronXGate, Mark Fondren/Enron@EnronXGate, Gary Hickerson/Enron@EnronXGate, Georgeanne Hodges/Enron@EnronXGate, Sheila Glover/HOU/ECT@ECT, Kori Loibl/Enron@EnronXGate, Mary Lynne Ruffer/HOU/EES@EES, Clara Carrington/Enron@EnronXGate, Frank Prejean/Enron@EnronXGate
cc: Chris Abel/HOU/ECT@ECT
Subject: ERMS Discount Memo as of May 25, 2001

Attached is the ERMS Discounting Analysis as of May 25, 2001.

Please call Chris Abel at X33102 or Anita Luong at X-36753 if you have questions.

Thanks