---------------------- Forwarded by Mark Breese/HOU/ECT on 04/24/2001 11:22 
AM ---------------------------
   
	Enron Capital Management
	
	From:  Mark Breese                           04/24/2001 10:54 AM
	

To: Bryant Frihart/ENRON@enronXgate, Sylvia S Pollan/Enron@EnronXGate, Laura 
Luce/Corp/Enron@Enron, Russell E Murrell/Corp/Enron@Enron@ECT, Di Mu/Enron 
Communications@Enron Communications, Gregg Penman/Corp/Enron@Enron@ECT, Cary 
M Carrabine/Corp/Enron@Enron@ECT, Robin Barbe/HOU/ECT@ECT, Ruth 
Concannon/HOU/ECT@ECT, Phil DeMoes/Corp/Enron@ENRON, Tammi 
DePaolis/Corp/Enron@ENRON, Nelson Ferries/Corp/Enron@ENRON, John 
Hodge/Corp/Enron@ENRON, David Jones/NA/Enron@ENRON, Gil 
Muhl/Corp/Enron@ENRON, John M Singer/Corp/Enron@ENRON, Maureen 
Smith/HOU/ECT@ECT, John Craig Taylor/HOU/ECT@ECT, Frank W 
Vickers/NA/Enron@Enron, Stephanie Miller/Corp/Enron@ENRON, Philip 
Polsky/NA/Enron@Enron, Kim Ward/HOU/ECT@ECT, Barry Tycholiz/NA/Enron@ENRON, 
Thomas A Martin/Enron@EnronXGate, Janet H Wallis/Enron@EnronXGate
cc: Joseph Deffner/Enron@EnronXGate, Tanya Rohauer/Enron@EnronXGate, Louise 
Kitchen/HOU/ECT@ECT, Ed McMichael/HOU/ECT@ECT 
Subject: Structure for Storage Loans / Deferred Payment Deals


The memo attached summarizes a structured deal that the market has shown some 
interest.  

Essentially, this deal allows an LDC to defer payment for gas and avoid 
carrying costs (which may result in a dollar for dollar benefit to your 
customer's bottom line).  

We have done two of these deals to date.  ENA has interest in additional 
deals (albeit not an infinite appetite) if the structure allows us to move 
them off the balance sheet.

Please review the memo and target any of your customers that may have an 
interest.  

Each deal will require a new quote from credit and from the cost of funds 
group.  Gas structuring is set up to structure these deals and develop them 
through to execution.  

Please call me with any questions at x36751