---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/29/2000 
05:04 PM ---------------------------


Darrell Duffie <duffie@Stanford.EDU> on 09/19/2000 08:04:35 PM
Please respond to Darrell Duffie <duffie@Stanford.EDU>
To: hoshino@Stanford.EDU
cc: vince@egs.com, Vince.J.Kaminski@enron.com 
Subject: review of valuation model for storage


Taiichi:

Here is the cover letter and report
that I sent to Vince Kaminsky on June 26.
As Zimin was the source of the
model and code, I think Vince
may not mind if you forward
it directly to Zimin.
Please wait 24 hours before
doing so in order to give
Vince a chance to countermand that.

Thanks!

Darrell



------------- Begin Forwarded Message -------------

Date: Mon, 26 Jun 2000 10:04:37 -0700 (PDT)
From: Darrell Duffie <duffie@Stanford.EDU>
Subject: review of valuation model for storage
To: vince@egs.com
Cc: duffie@Stanford.EDU
MIME-Version: 1.0
X-UIDL: 6e99939f2365395c2accfdf2edb72b88

Vince:


I attach a report, prepared under my direction
by my research assistant, Dr. Taiichi Hoshino,
now employed with Goldman Sachs, on the Enron storage
valuation model that you asked me to review.

This report contains some details that
you didn't ask for, but that your research staff
might appreciate.

The model and software are appropriate to
the task they are designed for, in my opinion, based
on the code and the documentation that
you sent. Some suggestions for
potential improvement are noted
in the attached report, but these
are either minor or not critical
to the current business objectives of the model,
in my view.

If this email is not sufficient, or you
would prefer a hard-copy opinion letter,
please let me know.


Meanwhile, I hope life at Enron is
as exciting as usual!

Sincere regards,


Darrell

PS I will bill you separately for my time (1.5 hours)
and the time of Dr. Hoshino.

_____________________________________________
Darrell Duffie
mail  GSB Stanford CA 94305-5015 USA
phone 650 723 1976
fax   650 725 7979
email duffie@stanford.edu
web   http://www.stanford.edu/~duffie/
_____________________________________________

------------- End Forwarded Message -------------


_____________________________________________
Darrell Duffie
mail  GSB Stanford CA 94305-5015 USA
phone 650 723 1976
fax   650 725 7979
email duffie@stanford.edu
web   http://www.stanford.edu/~duffie/
_____________________________________________

 - SAM_rev6.doc