New Product Type

Surprise, surprise, we are rolling out another new product type next week.
As documented below, this will be a financial power option. Should we copy
the customer profile for the existing east power financial swap or does this
require special handling??? Please let me know as soon as you can.

Thanks for your help!!!

Frank
---------------------- Forwarded by Frank L Davis/HOU/ECT on 07/13/2000 07:34
AM ---------------------------
Dale Neuner 07/12/2000 03:34 PM

To: Scott Mills/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Rudi
Zipter/HOU/ECT@ECT, Matthew Adams/Corp/Enron@ENRON, Tom Moran/HOU/ECT@ECT,
Kim S Theriot/HOU/ECT@ECT, Melissa Ann Murphy/HOU/ECT@ECT, Karen
Lambert/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT,
Stephanie Sever/HOU/ECT@ECT, Kenny Ha/HOU/ECT@ECT, Stacey W
White/HOU/ECT@ECT, Jennifer deBoisblanc Denny/HOU/ECT@ECT
cc: Sheri Thomas/HOU/ECT@ECT, Melba Lozano/HOU/ECT@ECT, Robert B
Cass/HOU/ECT@ECT, David Forster/Corp/Enron@Enron
Subject: Revised Product Description for EOL

This is a follow-up to my e-mail sent yesterday; we are pushing on with this
new Product Type.

Matt - I need a Sigma Factor.

Deal Type: US East Power Financial Option (Call)
Currency: USD
Country: US
Commodity: East Power
Default U of M: MWh

Please see the attached, and here's how these work:

The easy part is that it's a Call Option. Initially, we will only be offering
this products as the Seller, meaning the Counterparty will pay the premium
and ENA pays the Cash Settlement Amount. The option is 'automatically
exercised' at any time the capacity of certain named nuclear power plants
goes below 25% (which induces the 'Knock-in Period'). When this happens the
Cash Settlement Amount will be the total of Notional Quantity X (Hourly PJM
Floating Price - Strike Price (100 MWh) for each hour during the Knock-in
Period, and in no event will be greater than USD 4MM. Knock-in Periods may
commence upon the later of (i) the Effective Date or (ii) the first day a
Knock-in Event occurs, and will end upon the earlier of (i) 160 Peak hours
after the commencement of the Event, (ii) the conclusion of the Event, or
(iiI) the Termination Date; so - you can have multiple Events during the term
of the transaction, but there will only be one Cash Settlement Amount
pay-out, which will be 30 days after the last date in the term of the
transaction.

Per Legal, these transactions will be subject to the GTC and should never be
subject to any existing Master Agreement.

Dale
3-9746

---------------------- Forwarded by Dale Neuner/HOU/ECT on 07/12/2000 12:31
PM ---------------------------

Leslie Hansen
07/11/2000 05:50 PM
To: Dale Neuner/HOU/ECT@ECT, Gaurav Babbar/HOU/ECT@ECT, Bill
Windle/Corp/Enron@Enron, Carol St Clair/HOU/ECT@ECT
cc:
Subject: Revised Product Description for EOL

Attached please find the revised product description, which reflects my
discussions with Dale Neuner. I have attached both a clean copy and a
red-lined version against the last draft.

Leslie