----- Forwarded by Mark Taylor/HOU/ECT on 02/06/2001 06:37 PM -----

	Andrew Edison@ENRON
	02/06/2001 11:15 AM
		 
		 To: Dick Jenkins/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Kam 
Keiser/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT, Gregory 
Carraway/Corp/Enron@Enron
		 cc: Mark Taylor/HOU/ECT@ECT
		 Subject: Conectiv/Delmarva

I wanted to provide you with an update on this dispute.

As you will recall, we originally thought that we were the buyer on a Nov '00 
- March '01 basis swap @ Transco Z6 and Conectiv/Delmarva was the seller.  At 
least that is what our deal ticket indicated.  Conectiv/Delmarva disagreed 
vehemently, contending that they were the buyer and we were the seller.

Last week I obtained the tapes from the broker, Natsource.  I previously 
forwarded the tapes to you.  The tapes unequivocally indicate that we were 
the seller.  In fact, the tapes reflect that we sold two Nov '00 - March '01 
basis swap @ Transco Z6 contracts at the same time -- one to 
Conectiv/Delmarva and one to Duke.  We have gone back and checked our records 
to see if we actually sold a Nov '00 - March '01 basis swap @ Transco Z6 
contract to Duke at the same time we entered into a deal with 
Conectiv/Delmarva.  We did.  Notwithstanding the clear language on the tape, 
it would be hard to explain with a straight face why we would sell a swap to 
Duke and buy a swap from Conectiv/Delmarva at the same time.

After the trade, Natsource sent us a confirmation, indicating that we were 
the seller and Conectiv/Delmarva was the buyer.  Although we sent 
Conectiv/Delmarva a confirm (and they signed it) reflecting that we were the 
buyer and they were the seller, we settled the swap for the first two months 
as if we were the seller and they were the buyer.

The long and short of it is that, from a legal standpoint, there is no 
question whatsoever that the intention of the parties was that Enron would be 
the seller and Conectiv/Delmarva would be the buyer.  This is not even a 
close call.  It is my advice that we should settle the trade as if we are the 
seller and Conectiv/Delmarva is the buyer, and move on.