Revised Capital Charge for 2001

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---------------------- Forwarded by Tracy Geaccone/GPGFIN/Enron on 02/02/2001 10:56 AM ---------------------------

Terry West
02/01/2001 06:24 PM
To: Tracy Geaccone/GPGFIN/Enron@ENRON, Faith Killen/HOU/ECT@ECT, Nadia A Rodriguez/NA/Enron@ENRON, Niamh O'Regan/LON/ECT@ECT, Stephen Wood/LON/ECT@ECT, Stephen Evans/LON/ECT@ECT, Agatha B Tran/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey E Sommers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Thomas Myers/HOU/ECT, Jeff Smith/HOU/ECT, Kent Castleman/NA/Enron@Enron, Kerry Roper/GPGFIN/Enron@ENRON, Michael S Galvan/HOU/ECT@ECT, Wade Stubblefield/HOU/EES@EES, Debra Brannen/HOU/EES@EES, Carolyn Barrett/Enron Communications@Enron Communications, Howard Selzer/Corp/Enron@ENRON, Pamela Rush/Corp/Enron@ENRON, Dave Gunther/NA/Enron@Enron, James Hollman/Corp/Enron@ENRON, Robert Wilcott/Corp/Enron@ENRON, Karen Choyce/Corp/Enron@ENRON, Linda Armas/Corp/Enron@Enron, Krysti Knight/HOU/ECT
cc: Stephen Schwarzbach/Corp/Enron@Enron, Gregory Adams/Corp/Enron@ENRON

Subject: Revised Capital Charge for 2001

---------------------- Forwarded by Terry West/Corp/Enron on 02/01/2001 06:20 PM ---------------------------

Terry West
02/01/2001 06:20 PM
To: Tracy Geaccone/GPGFIN/Enron@ENRON, Faith Killen/HOU/ECT@ECT, Nadia A Rodriguez/NA/Enron@ENRON, Niamh O'Regan/LON/ECT@ECT, Stephen Wood/LON/ECT@ECT, Stephen Evans/LON/ECT@ECT, Agatha B Tran/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey E Sommers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Thomas Myers/HOU/ECT, Jeff Smith/HOU/ECT, Kent Castleman/NA/Enron@Enron, Kerry Roper/GPGFIN/Enron@ENRON, Michael S Galvan/HOU/ECT@ECT, Wade Stubblefield/HOU/EES@EES, Debra Brannen/HOU/EES@EES, Carolyn Barrett/Enron Communications@Enron Communications, Howard Selzer/Corp/Enron@ENRON, Pamela Rush/Corp/Enron@ENRON, Dave Gunther/NA/Enron@Enron, James Hollman/Corp/Enron@ENRON, Robert Wilcott/Corp/Enron@ENRON, Karen Choyce/Corp/Enron@ENRON, Linda Armas/Corp/Enron@Enron, Krysti Knight/HOU/ECT
cc: Stephen Schwarzbach/Corp/Enron@Enron, Gregory Adams/Corp/Enron@ENRON

Subject: Revised Capital Charge for 2001

Attached is an explanation of the revised capital charge that will be used for 2001. It is substanially different from the methodology used in prior years and will be applied only on at the business unit level.

The 2001 Plan will be restated to include the revised capital charge. The restated plan format file will be due on February 24. We will send a template for calculating the plan capital charge next week.

The actual capital charge for January will be booked in February business.

If you have any questions, please let me know.

Terry West
ext 3-6910