Hi Richard,

I wanted to touch base with you about the latest on the Green Power Market =
Development Group. I've attached the memo I sent them a couple of weeks ago=
. Last Friday, Mark Crowdis, who is coordinating on behalf of the group cal=
led me back and said that they want to see a formal proposal with notional =
pricing. Their members have operations across the country, and there may be=
one or two of them who will want to enter into a Kinkoesque arrangement wi=
th physical deliver plus green tags, but I imagine that there will also be =
a significant contingent who will only want tags, or tags with embedded cal=
l options as outlined in the memo. We are also looking into developing a gr=
een tag product that looks like a swap against an index, as opposed to a fi=
xed price green tag with an out-of-the-money call. I think I have a pretty =
good handle on tag pricing here in the Pac Northwest and Texas. PacifiCorp =
power Marketing will probably sell me new wind tags in the $7-8 range, and =
we have a decent line on existing and new biomass in California. Looks like=
Texas RECs will be clearing in the $6-7 range. How about the East? Does Co=
mmunity Energy sell their tags outside of their local region? How about the=
biomass market in the East? As I mentioned this morning, I'm looking forwa=
rd to working on this issue in depth with you when I am in Houston in Septe=
mber, but I thought you might have a couple of pricing points for me at thi=
s point. Another angle I am going to mention is the Canadian angle, as many=
of these companies probably have operations up there also. Have you ever h=
eard a thing about resources up there in the Tundra?=20

Although I imagine that we're going to be looking at pretty tight spreads o=
n these deals, they will hopefully create some liquidity as we move forward=
.
One other thing -- perhaps you can think of the names of a few key people a=
t EES that we should plan to meet with when I'm in H-town.

Thx,
EM

=20

Elliot Mainzer
Renewable Power Desk
Enron North America
121 SW Salmon St.
3WTC-0306
Portland, OR 97201
(503) 464-3706
(503) 464-3740 (FX)
(503) 709-6959 (CL)