I concur with your view .

No to all of them

Louise

 -----Original Message-----
From: 	Richter, Brad  
Sent:	Monday, October 01, 2001 2:22 PM
To:	Kitchen, Louise
Subject:	TrueQuote update

FYI, see the trail below.  The value prop is low and the related workload and risk are high... bad deal.  I'd like your thoughts if you get a minute.

Thanks for an engaging budget discussion last week,
Brad

 -----Original Message-----
From: 	Richter, Brad  
Sent:	Monday, October 01, 2001 10:52 AM
To:	Piper, Greg; Whalley, Greg
Cc:	Shults, Bob; Webb, Jay; Pickering, Mark
Subject:	RE: Opportunity to take on ICE  - CONFIDENTIAL - Update from EOL Team

I just spoke with Chris Edmonds.  There are 4 basic things he is requesting of Enron:

TQ receives the right to sell API's with limited EOL transactability
Brokers would be allowed to transact on EOL numbers through TQ site
Enron would post more products and terms on their site
The term of our Agreement would extend an additional 18 months

I told him that we have not yet reached strategic closure on selling API's or continuing Broker Client internally.  Even if we decided to pursue those activities, I explained that the value proposition for Enron doing it on its own was considerably more than TQ was offering us.  I made it clear that I was not going to drop everything and work on our API strategy just so that TrueQuote could get on with their business model.  I characterized the additional product and extended term requests as subsets of the first two and therefore also off the table.

I basically told him "no" and he said he would confer with Dennis and call back later in the week.

Please let me know if you have any questions,
Brad


 -----Original Message-----
From: 	Piper, Greg  
Sent:	Friday, September 28, 2001 4:40 PM
To:	Whalley, Greg
Cc:	Richter, Brad; Shults, Bob; Webb, Jay; Pickering, Mark
Subject:	FW: Opportunity to take on ICE  - CONFIDENTIAL - Update from EOL Team


Got the e-mail Chris Edmonds from TrueQuote sent to you.  

First, Brad Richter and Bob Shults know Chris well and are calling him today to let him know that we understand his request to you and that we will finalize a response to him early next week.

We completed the link to them as per our legal commitment earlier in the year and send to them the products we are required to as per the contract. Bottom line, we are absolutely honoring our contract with them.  However, they want to do more and that is what we are considering. 

Now, some history.  As you know, TrueQuote was supposed to be a robust, many-to-may site and function more like ICE does today.  Well, it doesn't.  It is basically a front end for EOL prices.  As of 9/27, 288 trades have occurred  for Enron at True Quote and the majority of those have been PG&E, an owner.  In August, it averaged 4 trades a day and in September, 1 trade a day.  

Issues arose a few months ago with them when they realized that they were struggling to be a true many-to-many exchange and wanted to sell APIs as TrueQuote to other companies.  This concerned us greatly since we felt, per our contract with them, that this was a technical and security issue for us.  Webb did not like it all for system security issues and we have a right in the agreement to say no because of that.  We also talked to other companies about an API to EOL and they said they were just going to get one from TrueQuote and that concerned us as well since the only thing at TrueQuote is our prices.

The broker portion is that they want to act like broker client.  As you know, the gas desks are indifferent to broker client but East Power does not like it for reasons I can explain later if you wish.  Therefore, they want to escalate broker client at a time when we are considering its cost/benefit for Enron.

Finally, if Dynegy puts prices there as well, that may be helpful to our equity but I don't think it is a high priority for EA as a trading company.

I discussed all this with Louise a month ago and I believe she supports our path.  I will check with her and Lavo Monday to make sure they are in agreement with any response we give to Chris.

Let me know if you need more info or want me to check with you as well before we respond to TrueQuote.

Thanks.

Greg Piper




 -----Original Message-----
From: 	Taylor, Liz M.  
Sent:	Friday, September 28, 2001 3:24 PM
To:	Piper, Greg
Cc:	Spiller, Tina
Subject:	FW: Opportunity to take on ICE  - CONFIDENTIAL

Greg,

Chirs Edmonds, of True Quote, has been calling for Greg and also sent this email (see below).  Greg has asked me to inquire about this w/you.  Please advise.  

Many Thanks,

Liz Taylor
Exec. Assistant to Greg Whalley
Office of the Chairman
Enron Corporation
Tel.   713.853.1935
Fax   713.853.1838


 -----Original Message-----
From: 	Chris S. Edmonds [mailto:chris.edmonds@truequote.com] <mailto:[mailto:chris.edmonds@truequote.com]> 
Sent:	Friday, September 28, 2001 2:39 PM
To:	Greg Whalley (E-mail)
Cc:	Dennis Crum (E-mail)
Subject:	FW: Opportunity to take on ICE  - CONFIDENTIAL

Greg:

I need your guidance regarding a few issues currently outstanding with respect to the True Quote / EnronOnline relationship.  Practically speaking, Enron's internal decisions will determine the fate of True Quote in its current form.  I will outline the issues below and await your response.

We are closing in on a deal that will connect DynegyDirect to the True Quote platform.  We believe True Quote would have a strong competitive advantage against ICE if we have a commitment from Enron and DynegyDirect.  We are hestitant to move forward with Dynegy until we have a complete understanding of our relationship with Enron.

True Quote has made a proposal to EnronOnline that would create a revenue stream to Enron in return for a larger product commitment from Enron.  We are waiting on a response from Enron. 

True Quote needs the ability for brokers to transact with Enron through the True Quote interface.  We have agreed to the same terms and conditions as the Broker-Client product offering.  We are waiting on feedback from Enron.

We are confident True Quote would be greatly successful if we could execute the strategies outlined above.  We want to have a win-win relationship with Enron that allows us to shape the marketplace and compete aggressively against ICE. Due to the critical nature of these discussions and the associated timing, I chose to write you and ask for your guidance.  Right now, we need to know which direction Enron plans to take.  Regardless of the direction, our time is running short.  It is with the greatest respect for the way we began this relationship, that I ask you to help us evaluate this opportunity.

Should you wish to discuss these matters further, please feel free to contact me at your earliest convenience.  I can be reached at virtually any time via my cell phone at 502-558-2568. 
  
Best regards,
Chris

_______________________________
Christopher S. Edmonds
Chief Operating Officer
True Quote LLC
9931 Corporate Campus Drive
Suite 2400
Louisville, KY  40223

Phone:  502-212-4903
Fax:      502-212-4907

email:   <chris.edmonds@truequote.com <mailto:chris.edmonds@truequote.com>>
url:        <<http://www.truequote.com/>>