Jim,

As requested, Enron North America Corp. is confirming that Sacramento Municipal Utility District has acquired Parcel 8887.0 and a portion of Parcel 8889.0 through the capacity release process.  Both of SMUD's bids are not contingent on satisfying any conditions, therefore, the capacity described below should be awarded effective February 1, 2002.  

Parcel 8887.0:

	10,000 Dth/day 		Kingsgate to Malin	02/01/02 through 10/31/05	100% of Max Tariff Rate	(approx $0.298595 per Dth)

Parcel 8889.0:

	10,000 Dth/day 		Kingsgate to Malin	02/01/02 through 10/31/08	100% of Max Tariff Rate	(approx $0.471975 per Dth)


Unfortunately, no one bid on the remaining 42,500 Dth/day of capacity in Parcel 8889.0, or the 10,099 Dth/day of capacity in Parcel 8885.0 which terminates on 10/31/02.

Call me if you need anything else,

Ruth Concannon
ruth.concannon@enron.com
713 - 853 - 1667