Andrew--

Looks good to me.  I have a question/comment on #3.  When we have talked to
PP&L, it was understanding that if you are buying power from the utility, it
was a sole-serve type of arrangement (you couldn't buy power on the grid).
If this is the case, is there a way that another Enron affiliate or maybe
your wholesale group could perform a swap with the power or the financials
to make it look like we are not taking power from the utility and selling it
in the market?

Corey

-----Original Message-----
From: Andrew.Miles@enron.com [mailto:Andrew.Miles@enron.com]
Sent: Friday, January 26, 2001 4:25 PM
To: Stringer, Alison
Cc: 'Andrew.Miles@enron.com'; Goodman, Mike; Johnson, Anders; Grindal,
Corey; Towne, Paul; Hegmann, Bret; Wallooppillai, Ram; Lloyd, Mike;
Mark.Knippa@enron.com; Maria.Tefel@enron.com; John.Hodge@enron.com
Subject: Stagecoach - Going Forward



Hey all,

I thought I would put down the steps that need to be done in moving forward
with the Stagecoach deal.  If there is anything I missed, please let me
know.

1. Need to recalculate deal as a 10-year term with updated pricing.

2. Need to explore possibility of receiving gas volumes in the Northern
Storage facility.  Understand that storage and withdrawal fees would apply.

3. Need to address the supply of power during the summer months of June
July and August that would provide maximum optionality for both
participants.  Will explore at least 2 scenarios: First, a minimum load
factor scenario in which power could be interrupted and sold back into the
market with Enron and El Paso sharing in the realized margin, and second, a
separate contract that provided El Paso with the ability to call on power
when they desire to run the electric compressor during those months.  This
could be the most challenging aspect of the deal, so please forward any
other ideas or suggestions.

4. Need to produce operating bands for load factors and corresponding heat
rates.  This includes exploring a ratcheting demand charge where annual
charge could be reduced and operation above a certain load factor would
result in pass through charges.

Once again, thanks to all for a very productive and high-energy meeting.
Let's keep the communication flowing so we can put together the best deal
for everyone involved.

Andrew


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