Liz/Carol
 
Attached is the email I received from Kevin Meredith, which details the 
current physical product option status on EOL, with examples.
 
Marcus
----- Forwarded by Marcus Nettelton/NA/Enron on 05/03/2001 11:40 AM -----

	Kevin Meredith/ENRON@enronXgate
	05/01/2001 12:45 PM
		 
		 To: Marcus Nettelton/NA/Enron@ENRON
		 cc: 
		 Subject: Physical options

Marcus,

I know this is quite an assortment of data, but I wanted to supply you with 
enough to be useful.  We have no US physical option products built.  We have 
plenty of US financial option products.  If this information is confusing, 
please do not hesitate to contact me.

German Pwr Phy Put - No products built
A Transaction with Enron Capital & Trade Resources Limited, under which the 
Option Buyer determines, on the Exercise Date, whether, in case of a Put 
Option, it shall deliver and the Option Seller shall take and pay for the 
Contract Capacity at the Strike Price in respect of each hour during the term 
of the Transaction. The Contract Capacity shall be the volume submitted by 
Counterparty via EnronOnline. In case of a Call Option, the Option Buyer 
determines, on the Exercise Date, whether it shall take and pay for, and the 
Option Seller shall deliver, the Contract Capacity at the Strike Price in 
respect of each hour during the term of the Transaction. The Premium is 
payable by the Option Buyer and shall be the price submitted by Counterparty 
via EnronOnline multiplied by the total number of hours during the term of 
the Transaction multiplied by the specified quantity of electric power.

German Pwr Phy Call - Product included
A Transaction with Enron Capital & Trade Resources Limited, under which the 
Option Buyer determines, on the Exercise Date, whether, in case of a Put 
Option, it shall deliver and the Option Seller shall take and pay for the 
Contract Capacity at the Strike Price in respect of each hour during the term 
of the Transaction. The Contract Capacity shall be the volume submitted by 
Counterparty via EnronOnline. In case of a Call Option, the Option Buyer 
determines, on the Exercise Date, whether it shall take and pay for, and the 
Option Seller shall deliver, the Contract Capacity at the Strike Price in 
respect of each hour during the term of the Transaction. The Premium is 
payable by the Option Buyer and shall be the price submitted by Counterparty 
via EnronOnline multiplied by the total number of hours during the term of 
the Transaction multiplied by the specified quantity of electric power.
The term of the Transaction shall be from 00:00 hours (prevailing Central 
European Time) on the Effective Date (or start date) to 00:00 hours 
(prevailing Central European Time) on the day following the Termination Date 
(or end date). The Effective Date (or start date) is 01 Jan 2002. The 
Termination Date (or end date) is 31 Dec 2002.
The Delivery Point shall be on the RWE Netz High Voltage Grid.
The price is quoted in Euro per unit of volume, which will be the Contractual 
Currency.
The unit of measure against which the price is quoted shall be megawatt-hours 
(MWh) and the quantity shown shall be in MW's delivered in each applicable 
hour for the duration of the Transaction (the "Hourly Quantity').
The Transaction shall be for a Baseload profile, being the delivery of 
electric power at a steady rate between 00:00 hours (prevailing Central 
European Time) and 24:00 hours (prevailing Central European Time) (totalling 
24 hours per day) on a calendar day.
Electric power shall be delivered at a point, or points on the 380/220 kV 
level.
The Option style and type shall be a European Call, ("EC").
The Exercise Date or Exercise Period shall be 13 Dec 2001.
The Strike Price shall be 21.5 Euros/ MWh

US SO2 EA Phy Opt - No Products built
A Transaction with Enron North America Corp., under which the Option Buyer 
purchases a Call Option granting it the right, in return for payment of the 
Premium to the Option Seller, to buy from the Option Seller a quantity of SO2 
Emission Allowances equal to the Designated Quantity at the Contract Price.  
The Option Buyer shall pay the Premium to the Option Seller within three 
Business Days of the Transaction.  The Option Buyer may only exercise the 
Option on the Exercise Date, otherwise the Option will lapse.

US Gas Financial Call Option
A financial Option Transaction with Enron North America Corp., under which 
the Seller receives the Premium and the Buyer receives the Cash Settlement 
Amount. Each calendar month during the Term of the Transaction will be a 
Determination Period, provided that if the Term of the Transaction is less 
than one calendar month the Determination Period shall be the Term of the 
Transaction.  The Notional Quantity per Determination Period shall be 
calculated from the volume submitted by Counterparty on the Website in 
accordance with the unit of measure.  The Premium shall equal the product of 
(i) the price submitted by Counterparty via the Website, multiplied by (ii) 
the Notional Quantity per Determination Period, multiplied by (iii) the 
number of Determination Periods during the Term of the Transaction. The 
Payment Date for the Premium shall be 2 business days after the Trade Date of 
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be 
5 business days after the Cash Settlement Amount is determinable. The Cash 
Settlement Amount shall be the greater of (i) zero, or (ii) the product of 
(a) the Notional Quantity per Determination Period, multiplied by (b) the 
Index minus the Strike Price.  The Option style and type shall be a European 
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the 
Transaction shall be as set forth on the Website.  The term of the 
Transaction shall be from the Effective Date of 01 Aug 2001 to the 
Termination Date of 31 Aug 2001.  The Exercise Period(s) shall be the 
penultimate Trading Day of the NYMEX Henry Hub Natural Gas Futures Contract 
for the applicable Determination Period. The Index for each Exercise Period 
shall be the settlement price for the penultimate Trading Day of the NYMEX 
Henry Hub Natural Gas Futures Contract for the applicable Determination 
Period. The price is quoted in US Dollars per unit of volume, which will be 
the Contractual Currency. The unit of measure against which the volume is 
shown shall be 10,000 MMBtu's per month.

Kevin
(713) 853-9555