Based on the attached, NBP is extremely cheap!  While the level of required 
premium over the current market price to buy back the shares is difficult to 
determine, I wonder why we wouldn't take a hard look at buying Duke's units 
(at no premium).  I see basically two paths:  First, a strategic investment 
made in contemplation of buying the remainder of the NBP units back 
(presumably at a premium over current prices)  and then contributing the NBP 
investment into the new regulated entity structure (at higher values).   
Second, at these prices the investment in NBP units compares favorably to 
other acquisitions GPG is looking at, e.g. East Tennessee.  Even if the 
contribution to the new entity doesn't occur, GPG could hold the Duke units 
for an indefinite time period, report reasonably good incremental earnings 
and cash flow and sell them back to the public at an opportunistic level.   
What do you think?


---------------------- Forwarded by Jerry Peters/NPNG/Enron on 12/17/99 02:57 
PM ---------------------------


David Borcyk
12/15/99 10:01 AM
To: Rod Hayslett/FGT/Enron@ENRON
cc: Jerry Peters/NPNG/Enron@ENRON 

Subject: NBPL Ratebase Multiple / NBP Unit Price Comparison

Rod,

Here is an updated comparison of "2X NBPL Ratebase" (as you defined it) to 
yesterday's closing price for Northern Border Partners.

I have also populated the matrix for various unit price premiums.

Call if you have any more questions.

/D. Borcyk