-----Original Message-----
From: 	Shankman, Jeffrey A.  
Sent:	Monday, October 22, 2001 1:29 PM
To:	Lavorato, John
Subject:	RE: Currency Hedging


I don't have all the facts to agree or disagree.  Until John Z has approval to trade currency, I wouldn't think you would want to go down this path.  In addition, I'm sure  you know hegding currency this big and late of Fridays is tough.

 -----Original Message-----
From: 	Lavorato, John  
Sent:	Monday, October 22, 2001 11:50 AM
To:	Shankman, Jeffrey A.
Subject:	FW: Currency Hedging


By the way, I agree with Zufferli on this.
 -----Original Message-----
From: 	Zufferli, John  
Sent:	Monday, October 22, 2001 11:46 AM
To:	Hickerson, Gary; Stuart III, William; Lavorato, John; Milnthorp, Rob
Subject:	Currency Hedging

Given the volatility in the gas market (which is the sole impact on the Canadian power book's US dollar exposure) and the exhorbitant cost involved in hedging multi-year cashflows (i.e. as evidenced by Friday 10/19/2001 trade of -$1,200,000 Cdn new deal value for the 14 year swap that I entered into), I will manage the currency exposure of this book myself, I will hedge appropriately when I see fit and will not accept hedges forced on Enron Canada because of arbitrary position limits set by your department.

John Zufferli