Chris -

As discussed, we are having issues with the RPS extract completion.  I have
cc'd you on another message with status to Kristin Albrecht.  Some of the
other issues we are having are listed there.  I will use this message to
elaborate on the contract details and RPS extraction in particular.

1.  There are some data fields missing from the extract that we will
definitely need.  These include the following:

- Volume Data (per unit time, aggregation level, total for contract)
- Start and End Date of Contract
- Pricing Data (type: indexed, fixed, etc.)
- Counterparty ID
- Deal Date (inception date)
- MTM Value

The problem is not that we do not understand these issues, so much as we
need to make sure to standardize the way the data is extracted from RPS for
each contract.  In doing so, we will be able to finish the Access Database
on the back end.  As for the front end of the database, we are ready for a
demo of the forms and fields to be used for the validation and
reconciliation procedures.  As planned, today or tomorrow we will do such.

2.  In addition, we need to arrange for a generic, introductory
presentation/discussion for the staff personnel to understand how Power
contracts work, what data pieces are of particular importance, and what
variations may be encountered.  Given the six boxes of contracts that we
already have, it should be possible to select a sampling of these with the
expertise of an Enron EES (Power) person to demonstrate the concepts
inherent there.  This will be absolutely critical to the efficiency and
success of our validation and reconciliation team.  It may also lead to
slight reconfiguration measures of the Access Database.

As it stands, those are the major issues we are encountering.  Please assist
with coordinating your or the appropriate person's time for resolution.  We
are looking to take care of these promptly so that the team can launch
headlong into validation/reconciliation effort.

> kpmg LLP  Information Risk Management
Joshua P. Galv?n
Senior Associate
700 Louisiana, Ste. 3200
Houston, Texas  77002
713/319-2082 (wrk)
713/256-8499 (mob)
jgalvan@kpmg.com



**********************************************************************
The information in this email is confidential and may be legally privileged.
It is intended solely for the addressee. Access to this email by anyone else
is unauthorized.

If you are not the intended recipient, any disclosure, copying, distribution
or any action taken or omitted to be taken in reliance on it, is prohibited
and may be unlawful. When addressed to our clients any opinions or advice
contained in this email are subject to the terms and conditions expressed in
the governing KPMG client engagement letter.
**********************************************************************