Rod,

In the past, we have negotiated our audit fees with AA separate from Enron.  In addition, we are billed separate from Enron.  This is the time of year that I would plan on starting discussions with AA for 2001 audit fees.  Estimated fees for 2000 were approximately $1mm which includes statutory audits for certain entities in addition to the overall US GAAP audit.  

What is the policy/guideline under which we should proceed with AA?  Would Enron prefer to negotiate this in their overall discussion for the Enron audit and then allocate to Azurix an appropriate amount?

Thanks -- Kenny