Carol - It is hard for me to concur without hearing from Jim as to exactly 
which trades he views as Allegheny's.

Jim - Let's go through the list on Monday, ok ?

- L

> -----Original Message-----
> From: Carol.St.Clair@enron.com [SMTP:Carol.St.Clair@enron.com]
> Sent: Thursday, May 17, 2001 5:25 PM
> To: LMcMurray@exchange.ml.com
> Subject: RE: Merrill/Allegheny Deals
>
> Locke:
> Do you concur?
>
> Carol St. Clair
> EB 3889
> 713-853-3989 (Phone)
> 713-646-3393 (Fax)
> carol.st.clair@enron.com
> ----- Forwarded by Carol St Clair/HOU/ECT on 05/17/2001 04:24 PM -----
>
>                     "Tucciarone, James"
>                     <jtucciarone@aeglobalma        To:     
"'Carol.St.Clair@enron.com'" <Carol.St.Clair@enron.com>
>                     rkets.com>                     cc:     
Elsie.Lew@enron.com, "':Rhonda.L.Denton@enron.com'"
>                                                    
<:Rhonda.L.Denton@enron.com>, "Conte, Rita M."
>                     05/17/2001 01:40 PM            
<rconte@alleghenyenergy.com>, "Yaish, Yair" <yyaish@aeglobalmarkets.com>,
>                                                    "Schubiger, Michael" 
<mschubiger@aeglobalmarkets.com>, "Sheybani, Robert"
>                                                    
<rsheybani@aeglobalmarkets.com>, "Jimenez, Tanya"
>                                                    
<tjimenez@aeglobalmarkets.com>, "Orr, Tom" <torr@aeglobalmarkets.com>,
>                                                    
"'ldorr@exchange.ml.com'" <ldorr@exchange.ml.com>
>                                                    Subject:     RE: 
Merrill/Allegheny Deals
>
>
>
>
>
> 5/17/2001
>
> Dear Ms. St. Clair,
>
> In my discussions with Rhonda L Denton, I understand that certain Enron
> transactions have been confirmed
> as Merrill Lynch Transactions. My understanding of the facts are that
> Merrill Lynch has not entered into any
> Financial Swaps with Enron North America since  3/16/2001.  Any Financial
> transactions after March 16, 2001
> should be confirmed as Allegheny Energy as governed by the ISDA Master
> Agreement signed on March 16, 2001.
>
> I have confirmed these facts with Ms. Lucy Dorr of ML Client Services;
> similarly, Lucy has discussed this matter with
> Locke Mc Murray, Counsel to ML Commodities.
>
> The deals in the attached list show ML as the counterparty on Financially
> Settled Power Swaps which is incorrect.
> Merrill Lynch has entered into Physical Settlement Power transactions which
> should be confirmed with ML for
> billing purposes.
>
> Allegheny Energy would be happy to supply a letter to Enron to confirm
> these
> facts.
> Please feel free to contact me should you need further help in resolving
> this matter.
>
>
> Best Regards,
> James M. Tucciarone
> Director
> Middle Office
> Allegheny Energy Global Markets
> (212)224-7052
>
> -----Original Message-----
> From: Rhonda.L.Denton@enron.com [mailto:Rhonda.L.Denton@enron.com]
> Sent: Tuesday, May 15, 2001 3:03 PM
> To: jtucciarone@aeglobalmarkets.com
> Cc: Carol.St.Clair@enron.com; Elsie.Lew@enron.com
> Subject: Merrill/Allegheny Deals
>
>
> (See attached file: merrillissue.xls)
> Here is a spreadsheet of deals done since 3/19/01, the closing date for the
> transfer.  Locke indicated that the deals in yellow are the ones that are
> Merrill deals.  The ones in blue were traded the day of the closing and
> were supposed to be netted and were not included on the transfer exhibit.>
> Therefore, they stayed as Merrill in our books.  Please confirm which are
> Merrill deals and which are Allegheny.  We will need confirmation after
> this review with our attorney as to where these deals will be booked.
>
> Another question that has arisen is whether Allegheny traders are trading
> for Merrill Lynch.  These issues need to be resolved so that we do not
> continue to have these questions when our settlements people try to check
> out at month end.  Thanks for your help.
>
>