Louise:

Please find the attached presentation that Jean, Don and I came by to discuss with you.  I know you are up to your eyes in credit issues, so we can talk about this when you get a chance.

We wanted to review the impact of the merger on Bridgeline.  Specifically, the potential benefits for putting in place an asset management structure for BHLP.   Dynegy has expressed interest in commercially managing these assets and Enron would to, if we would not have to pay an excessive fee to do so.   Jean's initial analysis indicates that Bridgeline is currently undervaluing the accrual value of the pipe and over-valuing trading.  We may be able to use this fact to our advantage in establishing a "low" asset management fee to pay to Bridgeline.

In addition, we may be able to reduce our deployed capital by selling the accrual value in BHLP to an MLP who is willing to pay a premium for stable cash/earnings.  The MLP could be one of Enron's (e.g. Northern Boarder, EOTT), or a Chev/Tex MLP (?), or even a 3rd party MLP.  The deciding factor should be the value the MLP is willing to pay for the earnings stream.

We have continued to discuss this with the Chev/Tex board members who remain interested in evaluating the benefits of this structure.  In their view, the Dynegy/Enron merger is a positive fact because it removes the Dynegy vs. Enron competition.

When you get a chance we can talk.

Brian