Vijay,

I apologize for the delay in getting back to you. I've been traveling again.  
I also just found this in my in-box as returned as un-delivered (I put only 
two v(s) instead of three.    I hope your other discussions went well that 
day.  

Below are a few comments that i believe you addressed and wanted some 
additional feedback from our coal activities and changes in the coal 
industry.  I wanted to get this out to you quickly so please forgive this 
lack of formality or writing creativity.

Enron activity (EOL)
Enron's online activity has been very successful especially as compared with 
our early estimations of acceptance by the industry.  I believe that there is 
only one other active coal trading system (Dynegy direct) that simply isn't 
posting prices as a bulletin board and waiting for a response with telephone 
follow-up.  I also believe that we have done a very significant amount of or 
maybe all the coal transactions on Dynegy direct to date.  We do a lot of our 
business online and the numbers YTD are that approx. 45% of our trades are 
executed online.  That number has been higher, as much as 90% for certain 
months or when we are trying something new or moving a particular product.  
Also, as Bid/Ask spreads tighten, which we would expect, that bodes well for 
EOL and our (and the markets) ability to transact even more quickly.  
Transactions that took days to put together now can be done in 1 second.  
Between the speed and the cost savings of having a fully integrated system, 
we believe that our transaction numbers and percentages of online business 
will significantly increase.

Changes in the industry
We discussed changes that we believe are coming in the industry.  We see 
several things on the horizon.  We expect the acceptance of the online 
transactions to further increase; especially with the volatile price 
movements what we have seen in the last 6 months.  We are currently 
developing several new products for EOL that I believe will become very 
popular and will create new markets in coal and related sectors.  I don't 
want to discuss them right now but we are close to releasing them and I think 
they will raise some eyebrows.    The development of the Global Coal exchange 
will also help.  I frankly don,t believe it will be very successful because 
of several things but primarily because of the difficulty in closing the 
transaction. One thing has been very firmly demonstrated.  Every time a new 
big system has been introduced EOL volumes go up.  It simply accelerates the 
acceptance of online business and it gets down to the best prices and 
liquidity to see who will ultimately win the day.  Another big change in the 
industry is the growing acceptance of the OTC market.  The significant price 
changes that have occurred have "forced" many traditional players to the OTC 
market.  This also includes forcing them to agree to standard OTC terms and 
conditions and getting them comfortable with the market.  This is very good 
for Enron especially when you consider that we are the major player on the 
OTC market.  We don't release specific percentages of what we are doing on 
the OTC.  Also having more natural and traditional players signing these 
types of standard agreements helps us on the EOL side because standard 
contracts are important for developing a more liquid commodity market.

Enron coal volumes
A couple of numbers that we are willing to release.  Year to date, we have 
made markets and transacted approx. 30 million tons in the forward market.  
On the physical side of our transactions, about 25% go physical vs. 
financial.  Last year Enron was the largest US market maker (not producer) 
with 142 million tons transacted.   Internationally we moved approx. 47 
million tons and overall the total was slightly less than 190 million tons.  
We have high expectations for 2001.  I believe that we should be up approx 
65% and we are on track with that.   I think the industry would be surprised 
that we did almost 2,800 transactions in 2000.   This doesn,t include any of 
our shipping business.

I hope this helps and please let me know if you have any other questions.

Mike