Renewable Power Desk Activities

Greetings all --
Given my rather other-world state on yesterday's conference call, I wanted =
to fire off an e-mail to you to summarize current commercial activities on =
the Renewable Power Desk. I appreciate all the work you guys are doing and =
feel as though we're really gaining some traction.

Green Power Market Development Group -- We will be submitting a proposal to=
the Wind Energy Working Group of the Green Power Market Development Group =
(headed by Mark Crowdis of Think Energy) on Tuesday with a variety of prici=
ng proposals for products ranging from physical commodity with green tags t=
o green tags with embedded call options. Richard and I are working together=
to develop pricing for tags in the Pac Northwest, California, Texas and th=
e East. I feel good about our chances of getting something done with these =
guys as they are feeling the heat to do something concrete after making so =
many public declarations of intent. As we move forward, I think we should a=
ll do a lot of thinking about other companies we should approach for this t=
ype of product. Once the Enron Building is juiced with wind power, we will =
be able to approach other fortune 500 companies with a straight face and en=
courage them to become Green Power Alliance Customers. During the week of S=
eptember 11, I plan to be in Houston to work extensively on drawing up the =
guidelines for the Alliance Program and working more closely with Richard a=
nd Stacey and their EES contacts to develop green power products for up-str=
eam marketing and new origination efforts.

Los Angeles Department of Water and Power -- LADWP is the largest green pow=
er buyer among public power agencies in California. Their green power buyer=
is heavily understaffed (and somewhat outgunned in terms of industry knowl=
edge). He has hired us to help him bring his contract negotiations to fruit=
ion, manage logistics for new projects and essentially sleeve new renewable=
power products through Enron's existing Master Services Agreement with LAD=
WP. This is an exciting (although not very profitable at this point) opport=
unity to establish the nodes of the California Renewable Power Pool and we =
see this as a way to bring our Services Desk functions to bear on the renew=
able sector in California. I am meeting with FPL Energy next week to discus=
s becoming the logistics coordinator for their new wind projects in Califor=
nia.

Wind Development -- As you may know, I purchased an option on a large parce=
l of windy land in Central Washington with enXco, a wind development concer=
n. We are marketing the project to two of the munis in the Pacific Northwes=
t (Seattle City Light and Eugene Water and Electric Board). Both have expre=
ssed interest. This morning I am meeting with the City of Portland to try t=
o convince Portland to follow Seattle's lead as a zero-carbon growth city a=
nd signatory to the type of Kyotoesque committments recently announced by N=
ew England legislators.

Renewable Portfolio Standard -- The proposed CA RPS has major implications =
for our business, from both a risk management and commercial opportunity pe=
rspective. We need to really drill down on this today and get as much insig=
ht as to the political climate as possible. Having witnessed the first meet=
ing of the California Power Authority last Friday in Sacramento, I am perso=
nally convinced that the RPS will definitely be passed in some shape or for=
m. If they pass a 1% requirement for new renewables next year, this transla=
tes into 430MWm off a 43,000MW peak load in CA. We have very good working r=
elationships with several of the biomass generators in California, includin=
g generators with new resources, and we are actively negotiating a marketin=
g agreement with one of them and considering taking a long position for the=
next couple of years. The critical question, of course, is who will actual=
ly have the short position in California? If it is just the DWR, then they =
will probably satisfy their requirement with their new renewables purchases=
. If the utilities end up serving load, they will be in the market looking =
for the least-cost resources, and new biomass will clearly be a part of the=
mix.

Pac Northwest RFPs -- Both PacifiCorp and Portland General Electric have RF=
Ps out right now for green tags and retail marketing services. I am staying=
in touch with Bonneville Environmental Foundation, Green Mountain Energy a=
nd Community Energy to act as a wholesaler for their tag submissions. I wan=
t to get master services contracts in place with each of these entities to =
make it really easy for them to transact with us. We can use our market leg=
s to get well-priced tags and then sell to them as they shoot for RFP succe=
sses. Bonneville Environmental, at a minimum, will need new biomass to blen=
d in with their expensive wind energy tags.

Chicago -- Most of you probably met Mike Lindert at our Houston Renewables =
meeting earlier this month. He was the EES originator for the ComEd deal, a=
nd as you know, there is a significant renewable committment in Chicago. We=
need to get in front of the City of Chicago as soon as possible to talk ab=
out their next generation of renewable purchases. Stacey, I belive you have=
info on this.

Sustainable Products Training -- The Renewable Power Desk has donated RECs =
and CO2 offsets for the Sustainable Products Training in Austin, September =
10 - 11. They are giving us lots of press and would like one or two of us t=
o attend. If you are interested in heading up there for a day with me, plea=
se let me know. There should be a pretty good turnout among potential comme=
rcial and industrial customers.

Kinkos -- All indications are that our negotiations with Kinko's are going =
very well. The hope is to sell them a three-year fixed-price retail product=
and 100% wind tags. Richard and I are woking to source the tags. Success w=
ill be huge, as Kinkos is part of the Green Power Market Development Group.

I know that Richard and Stacey have other deals on the table, and Jesse has=
been busy working on finalizing our services deal with Edwards Air Force B=
ase. I look forward to seeing you guys in Houston the week of September 11 =
and taking the next steps in formalizing our green product offerings.

Talk to you soon,

EM

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)