Hi Vasco,
 Did you get the fax of the e-mail I sent you last week?  Have you had a 
chance to talk to Mr. Bermudes about the issues raised?  Maybe it would be a 
good idea to have that firm draft the complaint we would file and have it 
translated for John ad I to review.  This would keep the ball moving 
forward.  What do you think?  Thanks in advance.
 -----Original Message-----
From:  "Vasco Ferraz" <DCMP#c#DCMP.PCMP#c#vferraz@elektro.com.br>@ENRON 
[mailto:IMCEANOTES-+22Vasco+20Ferraz+22+20+3CDCMP+23c+23DCMP+2EPCMP+23c+23vfer
raz+40elektro+2Ecom+2Ebr+3E+40ENRON@ENRON.com] 
Sent: Thursday, March 15, 2001 12:52 PM
To: Brownfeld, Gail
Subject: Enc.: Dear Vasco,

Content-Transfer-Encoding: quoted-printable
Date: Thu, 15 Mar 2001 12:15:37 -0300
From: "Vasco Ferraz" <vferraz@elektro.com.br>
To: DSAO.INTERNET#c#enron.com#c#Gail#c#Browfeld@elektro.com.br, 
DSAO.INTERNET#c#enron.com#c#John#c#Novak@elektro.com.br
Cc: tcalvao@elektro.com.br
Subject: Dear Vasco,
Mime-Version: 1.0
Content-Type: text/plain; charset=ISO-8859-1
Content-Disposition: inline

Dear Vasco,

Confirming our conversation of this afternoon, I would like to inform you
that the strategy concerning the question of the price increase for the
purchase of Itaipu's energy is the following:

(i) extra judicial consignation (at an official bank) of the amount of
Furnas' invoice, without contemplating Aneel's resolution nr. 581/2000
increase;

(ii) according to the law (Civil Procedure Code, article 890, oo 1 to 4),
Elektro will send an extra judicial notification to Furnas, informing about
the deposit effected at the official bank;

(iii) Furnas will have 10 days to manifest itself about this payment: (a)
accepting, the debtor will be considered as released of the obligation; (b)
refusing to effect the payment, through letter sent to the official bank.
Consequently, Elektro will have to propose, within 30 days, the competent
payment into court proceeding against Furnas and the subsequent invoices
should be deposited at court;

(iv) besides the payment into court proceeding against Furnas, an ordinary
lawsuit will be proposed against Aneel, in order to recognize that the
Itaipu's cost increase could only be liable to Elektro when passed on to the
energy rates. This lawsuit would also demand a declaration that every time
the price of energy purchase increases, the rates would automatically be
increased accordingly. Elektro shall ask for an injunction to prevent Aneel
from establishing legal and contractual sanctions against Elektro because of
partial payments made to Furnas, i.e., payments without Aneel's resolution
nr. 581/2000 increase.


Remaining at your disposal for any further explanation deemed necessary.

Best regards

Marcelo Ferro