Attorney-Client Protected

Kevin, If we respond to the RFP with what we believe to be market prices and 
values and they don't accept it - does that not support a case where damages 
from the MOPA , for that 500 MW, can be defined to be equal to or lower than 
our submission.  

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 08/31/2000 
09:31 AM ---------------------------
   
	Enron North America Corp.
	
	From:  Kevin M Presto                           08/31/2000 09:08 AM
	

To: David W Delainey/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT
cc:  
Subject: Re: TVA Issued RFP for peaking power  

Attorney-Client Protected

No, I don't think so.  TVA wants a two year PPA with 100% control, including 
AGC and hourly dispatch.  We would have to price the capacity and energy 
product they are asking for extremely high, and we run the risk of increasing 
our LD exposure in the pending litigation.

If Elizabeth thinks we can use the RFP to help our legal case, I would 
certainly support a response that helps our overall ecomomic position.