Gary:
Thanks.  I will take a look at this and get back to you shortly.
Carol



	Gary Taylor
	06/28/2000 11:16 AM
		 
		 To: Carol St Clair/HOU/ECT@ECT
		 cc: 
		 Subject: Bombardier memo

Carol,

I left you a message last week regarding the enclosed letter.  You asked to 
see a copy...

Background: Enron and Bombardier developed a promotional campaign to help 
sell snowmobiles.  Retail customers who purchased snowmobiles from various 
retail vendors by October 1 were eligible for a $1,000 rebate from Bombardier 
if the subsequent November-March snowfall was less than 1/2 the average of 
the previous 3 years.  In October, Bombardier reported to us the number of 
snowmobile sales in each city covered under our program and paid us a 
predetermined premium for each unit sold.  In return, Enron was liable for 
potential payouts in each of the cities covered under the program (different 
payouts in each city depending on the number of Bombardier units that were 
sold in each city).

The settlement date for the program was June 14 - allowing for true-ups by 
the various weather services.  As of this date, we were responsible for 
payouts in 6 cities.  We sent prompt payment to Bombardier.

Current Issue:  Bombardier has requested that we send a letter to to them, on 
our letterhead, specifying the actual Nov-Mar snowfall amount in each city 
covered under our contract with them.  They plan to forward this letter to 
the stores that sold Bombardier snowmobiles under this program.  The impetus 
for this letter is that some customers in cities where snowfall exceeded the 
strike (no rebate payments due to customers) thought/think that they may be 
entitled to a rebate.

Here is the letter:


Of course, I am waiting for your response before I send this letter out.

Regards,
Gary Taylor
x31511