We think the HoustonStreet disclaimer is not just overkill but entirely 
unnecessary.  And I plan to remind all of you of this the next time you claim 
the Enron lawyers are too conservative!




Elena Kapralova
06/29/99 09:03 AM
To: Rahil Jafry/LON/ECT@ECT
cc: Louise Kitchen/LON/ECT@ECT, Marcello Romano/LON/ECT@ECT, Paul 
Goddard/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT, Gary Foster/Corp/Enron@Enron, 
Mark - ECT Legal Taylor/HOU/ECT@ECT 
Subject: Disclaimer in HoustonStreet Press Release  

Rahil,

According to Clifford Chance, our European Legal Advisor, this disclaimer 
must be driven by regulatory and investment issues in US, i.e. SEC 
requirements. 
In Europe, the paragraph like this would not be necessary in the ress 
release, but as our press release will be issued in US, it may need further 
investigation with US lawyers.... 




Rahil Jafry
29/06/99 11:10
To: Louise Kitchen/LON/ECT@ECT, Marcello Romano/LON/ECT@ECT, Paul 
Goddard/LON/ECT@ECT, Elena Kapralova/LON/ECT@ECT, Justin Boyd/LON/ECT@ECT, 
Gary Foster/Corp/Enron@Enron
cc:  
Subject: HoustonStreet.com

Pls. note the disclaimer at the end of the message (highlighted in red).
Justin/Gary, is there a specific legal or PR related reason for this?
Would we have to make similar disclaimers in our press release?  Gary and I
are working on draft press releases currently and will forward those for
your approval soon.

- R
******************************************************************************
***********

Trading Megawatts On the Web: Houston Street Exchange
Launches First Fully Web-Based Trading Floor and Portal for
the Electric Power Industry

Business Wire - June 28, 1999 08:32
PORTSMOUTH, N.H.--(BUSINESS WIRE)--June 28, 1999-- HoustonStreet.com alters
power trading
landscape by increasing the efficiency of how power is bought and sold
Electric power. It's quickly becoming one of the world's largest traded
commodities, yet it's one of the last to be bought and sold over the
Internet. But that's about to change today when Houston Street Exchange
introduces HoustonStreet.com, a new online electric power trading floor that
allows power traders to buy and sell electricity faster and better than
before.
Houston Street Exchange hopes to do for the power industry what E
rade did for the stock market: turn the industry upside down by bringing
together buyers and sellers in a real-time, efficient online format. This
will shift the control of the $70 billion wholesale power market in the
United States by putting it directly into the hands of power marketers,
utilities and other traders that are entering the increasingly deregulated
energy market. HoustonStreet.com serves as a portal for power traders,
providing critical information regarding weather, energy news, stocks and
other direct links necessary for trading electricity. HoustonStreet.com is
pioneering the emerging business-to-business e-commerce power trading
market.
Lights out for phones, static Web sites
HoustonStreet.com delivers what has so far been elusive to the power trader:
an easy-to-use, fully Web-based trading floor that gives power traders all
the information and flexibility they need to post offers, make bids, counter
and re-counter instantaneously, until they close the deal.
Historically, power marketers have attempted to finalize deals while
juggling numerous phones and praying no one is undercutting their
transactions because they can't see a real-time picture of market pricing.
They lose precious time because they must call around to get the latest
market prices.  HoustonStreet.com eliminates that by giving power traders
instant access to current pricing fluctuations in different regional power
markets.
"The real-time environment of the Web naturally lends itself to trading
wholesale power," said Paul Messerschmidt, manager of Power Markets Services
at Energy Security Analysis, Inc. "But existing online products are
inflexible and they typically require proprietary hardware or software to
operate.  Until these issues are rectified, wholesale power trading online
will remain dormant. Houston Street Exchange is positioning itself as the
industry's wake-up call by providing a secure, reliable and flexible
platform that allows traders to trade power the same way they do today, but
more efficiently."
HoustonStreet.com enables traders to make deals based on the product and
term of their choice, providing them the flexibility to buy and sell the
same way they do now, only utilizing a much more efficient and easy-to-use
medium-the Internet.
"The leadership of Houston Street Exchange has a vision for changing the
power marketing industry" said Alan Herrick, senior vice president at
Sapient Corporation (NASDAQ: SAPE) the e-services consultancy that helped
create HoustonStreet.com. "They understand the importance of first-mover
advantage and the need to continually provide a world-class experience for
their targeted market.  Sapient is delighted to be Houston Street's
partner."
Built with power traders in mind
Designed by power traders for power traders, HoustonStreet.com enables users
to maintain total control over each transaction, view their complete trading
history, sort offers and bids by price, term, volume and delivery point, and
trade 24 hours a day, 365 days a year using an online service that ensures
the security and anonymity of each transaction.
Easy to access, navigate and use, HoustonStreet.com gives traders
up-to-the-second market information, allowing them to make the best deals at
the right time without having to leave the site.  Traders are able to
customize their Web page so they can see information that may impact
decisions on trading strategy such as updated weather reports, news
headlines about the energy industry and stock prices.
HoustonStreet.com provides users with the ability to enter their own
information regarding trading agreements and credit status without betraying
the anonymity of other parties. Knowing whether an enabling agreement is in
place and credit issues have been resolved beforehand gives a power marketer
a tremendous advantage in making split-second decisions.
Because of its ease of use and real-time environment, HoustonStreet.com will
allow power traders to make more transactions and become more efficient.
HoustonStreet.com will initially cover the Northeast regions (NEPOOL, PJM,
NY) and expects to roll out the remaining trading regions of the country
over the next several months.
"Wholesale power trading in the United States has grown by about 900 percent
since 1996. In 1998, more than 3.0 billion megawatt hours were traded, with
virtually all of it done over the telephone," said Frank Getman, Houston
Street Exchange's president and CEO. "We are redefining how power is traded
in the wholesale market, making it much more efficient and easy for power
marketers to buy and sell electricity. HoustonStreet.com represents a
powerful convergence of two major trends: growth of business-to-business
e-commerce and deregulation of the electric power industry."
About Sapient
Sapient Corporation is an innovative e-services consultancy. Through the
delivery of integrated services, from business strategy and organizational
transformation consulting through user-centered design and technology
implementation, Sapient helps emerging and evolving businesses transform
themselves into e-businesses. Founded in 1991, Sapient has experienced
strong and consistent revenue growth in each of the last eight years. The
company currently has more than 1,600 employees in offices in Cambridge,
Mass., the company's headquarters, as well as London, Sydney, New York, San
Francisco, Chicago, Atlanta, Dallas and Los Angeles. More information on
Sapient can be found at www.sapient.com.
About Houston Street Exchange
Designed by power traders for power traders, Houston Street Exchange has
developed the first Web portal for trading wholesale electric power.
HoustonStreet.com provides an online trading floor that allows power
marketers to trade power faster, more efficiently and more easily than they
do today.  Launched June 28, 1999, Houston Street Exchange is headquartered
in Portsmouth, New Hampshire.  Houston Street Exchange is a wholly owned
subsidiary of BayCorp Holdings, Ltd., (AMEX: MWH). For more information,
visit Houston Street at www.houstonstreet.com.
This press release contains forward-looking statements. There are a number
of important factors that could cause these forward-looking statements to be
materially inaccurate. These factors include, without limitation, that (i)
power traders may be unwilling or unable to use Internet-based power trading
systems, including HoustonStreet.com, (ii) HoustonStreet.com may not be able
to operate profitably, (iii) technological or systems outages could occur
and (iv) competitors with greater financial, marketing or other resources
could emerge. HoustonStreet.com is a registered service mark of Houston
Street Exchange. Sapient is a registered service mark of Sapient
Corporation.
CONTACT: Beaupre & Co. Public Relations, Inc.
Christa Branscombe, 603/559-5804