This response my be outdated given that I think we have resolved this 
already, but my take on this is that in reality this won't really be an 
issue.  I'm confident RBC and Enron will work together to unwind the 
transactions in an appropriate manner.




   
	Enron Capital & Trade Resources 
	Canada Corp. 
	
	From:  Peter Keohane                           09/19/2000 01:41 PM
	

To: Brian Kerrigan/HOU/ECT@ECT, Soma Ghosh/HOU/ECT@ECT, Sara 
Shackleton/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, William S 
Bradford/HOU/ECT@ECT, Derek Davies/CAL/ECT@ECT, Greg Johnston/CAL/ECT@ECT, 
dpef@blakes.com, wen@blakes.com
cc: Sharon Crawford/CAL/ECT@ECT 
Subject: Alberta PPA Financing - Prepayment Right

A seemingly unresolved issue is our right to prepay before the end of the 
term of the swaps.  I believe this is something we want commercially, but 
what is not clear to me is how we envision this working commercially.  In 
other words, although any swap can be bought out, I do not believe the ISDA 
documentation contemplates agreed terms for buy-out.  Rather, the party 
seeking to get out early asks for the counterparty's offer and hits the offer 
or not.  If RBC or Swapco was not willing to make an we are willing to 
transact at, we might not be able to get out.  Perhaps Sara could advise if 
my interpretation of the ISDA is right and, if so, Brian and Soma can confirm 
how they see prepayment working without a specified prepayment right.

PK