Ruth, I wanted to give you the details of how we placed these numbers in 
Sithe's P&L.

1.  Instead of reducing the purchase price in Sitara(we would capture this 
revenue in the P&L in two months with OA, we want to complete the transaction 
in the current P&L) we have written a physical annuity between ENA and Sithe 
Power QP7914.2.  Please settle this with January's physical purchase.
2.  Sithe then receives 50% of this incremental revenue, this was booked in a 
financial annuity QP7914.1, this should also be settled with January's 
invoices.
3.  We have placed the Power portion of the revenue in  Schedule B in the 
FT-Ontario book(this is due to the Sithe P&L limitations, we will be 
modifying the book set up for any future deals such as this).  A financial 
annuity was then written between Sithe and Ontario to recognize the schedule 
B item in the sithe book and keep Ontario flat(TAGG#QP7914.3).
4.  The final $550,919 was then granted out to you via origination from the 
FT-Ontario book(same reasons as above) and an annuity was then written to the 
FT-Ontario book to keep it flat.(TAGG#QP7914.4).

These four deals in TAGG will keep the sithe book flat and should accomplish 
the goals of your email below.  If you have any questions or concerns, please 
feel free to contact me at 3-7376.  Thanks.
PL



   
	Enron North America Corp.
	
	From:  Kam Keiser                           02/05/2001 01:00 PM
	

To: Phillip M Love/HOU/ECT@ECT
cc:  
Subject: Sithe Independence -- 400 MW Turndown for January 2001


---------------------- Forwarded by Kam Keiser/HOU/ECT on 02/05/2001 01:05 PM 
---------------------------
   
	Enron North America Corp.
	
	From:  Ruth Concannon                           02/05/2001 11:56 AM
	

To: Kam Keiser/HOU/ECT@ECT
cc: Jeffrey C Gossett/HOU/ECT@ECT, Diane H Cook/HOU/ECT@ECT 
Subject: Sithe Independence -- 400 MW Turndown for January 2001

Kam--

There was a typo for the gas volume that was used in Stacey's worksheet
to calculate the gas price.  The original spreadsheet had 11,240 Dth/day
and a gas price of $11.126/ Dth.  When you use the correct volume of
22,263 Dth/day, the gas price drops to $5.6172 for Day 1 in the attached
file.  This corrects the double-counting I told you about this morning. 

The spreadheets you sent to me calculate the power keep whole expense
on the "Gas Price" sheet.  On the sheet, it is the sum of $3,880,560 ( i.e. 
the correct
number if Day 31 is actualized rather than estimated by the power curves).

Unfortunately, Stacey's calculation does not include the transport commodity
savings, the tax expense and the amount of sharing due Sithe.  Those numbers
were provided in my memo on Friday.  If we do one of these deals again, we 
can provide Stacey with the additional expenses and revenues so that it can
be perfect calculation.  

Call me if there are any questions,

Ruth