I spoke to Andrea and she said that the commercial guys were taking care of 
this issue.  This came up because during my trip a week and a half ago I 
suggested they let Houston know about the deal so that no one was surprised 
when the deal was executed.  They are trying to close the deal by the end of 
the month.  I am not sure if they can pull everything together in time. 
Additionally Diomedes told them that he does not want Electro buying the 
power but wants a free customer of Electro buying the power which just 
complicates things even further.  Do you have a time frame for when you can 
come to Brazil yet?  Let me know when you do and Andrea Bertone will check on 
the availability of Jose Emilio Pinto and Luis Mauer to spend some time with
us.  Talk to you later.
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on
28/07/99 12:53 PM ---------------------------

From: Patricia Cini@ECT on 28/07/99 10:41 AM CDT

To:   Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject:  Brazil Transaction

FYI-

See the trasaction they are looking at below and Sue's response to their 
ability to move forward.

Regards,

Pat

---------------------- Forwarded by Patricia Cini/HOU/ECT on 07/28/99 10:40
AM ---------------------------

From: Sue Frusco AT ENRON_DEVELOPMENT@CCMAIL on 07/28/99 02:03 PM

To:   "Andrea Bertone/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, "Don 
Black/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, "Marcelo 
Parodi/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, "D'Arcy 
Carroll/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL, "Gustavo
Junqueira/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL
cc:   Patricia Cini@ECT, Ted Murphy@ECT
Subject:  Brazil Transaction




Hey guys, I hate to be the bearer of bad news, but I just checked with Ted 
Murphy and there is no authorization in place for trading transactions in 
Brazil.  This is pretty serious, and I suggest that someone call Ted (x33324) 
prior to execution to explain the deal and work through issues.

I know that Don had written a trading authorization memo, but since Ted has 
not seen it, I assume that in the frenzy of business, it was not submitted. 
The submission of an authorization memo to Ted for Rick Buy's and Jeff 
Skilling's execution is standard practice and required prior to entering a 
new market.   This is an interim step prior to going to the Enron Board for 
formal approval of trading limits.

I understand that Don is in Houston on vacation and I'm trying to track him 
down.

Sue
---------------------- Forwarded by Sue Frusco/ENRON_DEVELOPMENT on 07/28/99
07:18 AM ---------------------------

From: Patricia Cini@ECT on 07/26/99 05:33 PM

To:   Sue Frusco/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, William S
Bradford/HOU/ECT@ECT
cc:

Subject:  Brazil Transaction

FYI-

Brazil is starting up it looks like although they still have some regulatory 
issues that need to be resolved before we will see alot of transactions.  I 
am going to ask the attorney in Sao Paulo, Andrea Bertoni, to summarize the 
regulatory issues just so we can understand this market better.

The transaction below is what they are looking at for the time being. 
Although I do not see large credit issues with this specific transaction, I 
am going to forward a memo that Julio and I wrote that outlines the credit 
procedures that need to be followed.

Regards,

Pat


---------------------- Forwarded by Patricia Cini/HOU/ECT on 07/26/99 05:26
PM ---------------------------


Claudia Brun@ENRON_DEVELOPMENT
07/23/99 02:56 PM

To:   Patricia Cini@ENRON_DEVELOPMENT
cc:   Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don 
Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marcelo 
Parodi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, D'Arcy 
Carroll/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gustavo
Junqueira/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject:  Brazil Transaction

Pat,

Per our conversation today, Enron Comercializadora de Energia Ltda (Enron's 
entity which is authorized to trade in Brazil) is negotiating its first 
transaction.  The details of the transaction are as follows:

BUY SIDE

Counterparties:          Companhia A?ucareira     Companhia Energ,tica
Vale do Ros?rio          Santa Elisa

Location:                Morro Agudo, S?o         Sert?ozinho, S?o
Paulo                    Paulo

Type of Energy           Interruptible            Interruptible
Contracted:

Contracted Amounts:      Up to 1.5 MW             Up to 1.5 MW

Contractual Period:      Aug 1 - Nov 30, 1999     Aug 1 - Nov 30, 1999

Contracted Tariff:       R$ 18.50/MWh less        R$ 18.50/MWh less
transmission costs       transmission
(estimated at: R$        (estimated at: R$
2/MWh)                   2/MWh)

Total Contractual        R$ 72,468 or US$         R$ 72,468 or US$
Obligations              40,260                   40,260





SELL SIDE

|-------------------------------------------------->
|Counterparties:                                   |
|-------------------------------------------------->
>--------------------------------------------------|
|Elektro Eletricidade e Servi?os S.A. (99.6% owned |
|by Enron)                                         |
>--------------------------------------------------|
|-------------------------------------------------->
|Location:                                         |
|-------------------------------------------------->
>--------------------------------------------------|
|S?o Paulo                                         |
>--------------------------------------------------|
|-------------------------------------------------->
|Type of Energy Contracted:                        |
|-------------------------------------------------->
>--------------------------------------------------|
|Interruptible                                     |
>--------------------------------------------------|
|-------------------------------------------------->
|Contracted Amounts:                               |
|-------------------------------------------------->
>--------------------------------------------------|
|Up to 3.0 MW                                      |
>--------------------------------------------------|
|-------------------------------------------------->
|Contractual Period:                               |
|-------------------------------------------------->
>--------------------------------------------------|
|Aug 1 - Nov 30, 1999                              |
>--------------------------------------------------|
|-------------------------------------------------->
|Contracted Tariff:                                |
|-------------------------------------------------->
>--------------------------------------------------|
|R$ 27/MWh                                         |
>--------------------------------------------------|
|-------------------------------------------------->
|Total Contractual Obligations                     |
|-------------------------------------------------->
>--------------------------------------------------|
|R$ 237,168 or US$ 131,760                         |
>--------------------------------------------------|



Feel free to contact us if you need further information.

Claudia