Sally and Brent,
Here are the details behind our phone calls this morning. "M" is millions.

Sheila
---------------------- Forwarded by Sheila Glover/HOU/ECT on 08/31/2000 11:43 
AM ---------------------------


Clara Carrington
08/31/2000 10:31 AM
To: Sheila Glover/HOU/ECT@ECT
cc: Joyce Kuo/NA/Enron@Enron 
Subject: Summary of Cash Flow Events

Sheila,

We have been having issues with the commodity cash flows since last Friday, 
Aug 25.  This is a listing of what's been going on.


            TIME PDH
DATE     COMMODITY BOOK GIVEN TO TRADER   SUMMARY OF DISCUSSION

8/25/00 ENPOWER - WEST  7:05    Original    West cash flows did not look 
right.  Valerie left voice mail
         late Thursday night stating not to treat the $18M gain as
          final.  She indicated that Lavorato was going to review the
         cash flows  this morning and she will let us know the final
          number at that time.  These cashflows created a $19,000
         PV01 affect. 
        
     7:45    Re-ran w/old West CF  After consulting with Pushkar, we 
replaced  the new west              cash flows with prior days so hedging 
could begin.

    10:15   Final    Spoke with Monica Lande at 9:30am and she stated that 
the             original cash flows received were real. We then had to 
         bring the original cash flows back and re-do the PDH 
         reports.

8/28/00 refer to email sent by Sheila on this day.

8/29/00 UK-NAP-LT-PRC 7:35     Cash flows received from the UK book looked 
really weird. 
         The $38M cash flow curve change created a 15,000 PV01
         affect.  We contacted Guy Freshwater regarding.  He
         indicated that per Mark Fondren, the book was officialized 
         Monday, on Friday since Monday was a Holiday for their 
         Office.  We backed out the new cash flow, and then substituted
         the old ones.

8/30/00 UK-NAP-LT-PRC 7:30  Original    The same thing happened as 8/29/00.  
The book was not officialized  
    7:45  Final    on 8/29, therefore we received the same incorrect cash 
flows.  We again
         substituted these cash flows with those received on 8/25/00.  I 
talked with
         Mark Fondren and he indicated that the book has now been 
officialized.
         (In the past we have not had issues with the UK commodity Books in 
the 
         ERMS system. )

8/31/00 ENPOWER - WEST 7:20  Original    Cash flows received for west created 
a 14,000 PV01 affect.  We contacted
    8:00  Final    Monica Lande and she informed us that there was a $14 M 
loss in their book, 
         but $6 M was not real.  We asked for a cash flow strip for the 
incorrect flows, but          she was not able to provide it.  Therefore, we 
used the previous day's cash
         flows.  After the 7:20 PDH report, the system started running slow, 
therefore
         it took even longer to produce a revised report.