Vito:

To give you an indication of the current value of your generation,  San Juan 
offers are running about NYMEX less $.20/MMBtu for most forward months.  That 
puts the fixed price about $5.50 - $5.75.  Peak Palo Verde Bids are

Q3 - $520
Q4 - $190
Q1 2001 - $125

It looks like you are in the money at least through the end of the year.

We have been looking at the transmission issue.  What substation would you be 
able to deliver to?  We can determine if transmission is available.  

Irrespective of availability, I still believe Salt River or APS will be the 
best physical bid for your energy as they can keep it in their system and 
avoid transmission.  

I would like to push forward to get ISDA swap contracts in place with BHP.  I 
remember losing a deal with Francis Mcalister a few years ago despite being a 
better offer because contracts were not in place.  Enron North America does 
not have an ISDA with BHP.  We could also push to get a physical electricity 
contract in place.  I think we have a physical gas contract.

Would you like to push ahead to get contracts in place?  Let me know.  It is 
not too early to start the process as it typically takes a month or so to 
make it happen.  What would be the name of the counterparty?  You are the US 
subsidiary of BHP correct?

C
503/464-3822