We should include with the overall Enron audit fee.  I would suggest an audit plan and fee proposal similar to what we did with each major business unit.  You guys go through it and then we sit down and briefly take a look so we can fold into the total.  Is that reasonable to you?


From:	Rod Hayslett/ENRON@enronXgate on 05/07/2001 08:07 AM
To:	Richard Causey/Corp/Enron@ENRON
cc:	Bob Butts/ENRON@enronXgate, James Saunders/ENRON@enronXgate 

Subject:	FW: AA Audit Fees 2001

 What is the verdict on this one?

 -----Original Message-----
From: 	Kenny Bickett/HOU/AZURIX@AZURIX@ENRON [mailto:IMCEANOTES-Kenny+20Bickett_HOU_AZURIX+40AZURIX+40ENRON@ENRON.com]  On Behalf Of Kenny Bickett/HOU/AZURIX@ENRON
Sent:	Monday, April 09, 2001 3:29 PM
To:	Hayslett, Rod
Subject:	AA Audit Fees 2001

Rod,

In the past, we have negotiated our audit fees with AA separate from Enron.  In addition, we are billed separate from Enron.  This is the time of year that I would plan on starting discussions with AA for 2001 audit fees.  Estimated fees for 2000 were approximately $1mm which includes statutory audits for certain entities in addition to the overall US GAAP audit.  

What is the policy/guideline under which we should proceed with AA?  Would Enron prefer to negotiate this in their overall discussion for the Enron audit and then allocate to Azurix an appropriate amount?

Thanks -- Kenny