I recently met with John Sherriff to review year-to-date regulatory affairs 
costs.  We both agreed my team's efforts represent a real bargain!  
Seriously, John asked me to summarise year-to-date spend for the commercial 
units, so that they might get a feel for the costs being incurred on their 
behalf.  I do this below.  First, just few explanations.  First, these are 
figures through July (7 months).  Our burn rate is fairly constant, so you 
should be able to extrapolate year-end spend from these, with the exception 
of Central and Southeastern Europe, which started high and has come down.  
Second, direct costs (payroll, travel, consultants, etc.) incurred by my 
department year-to-date are $2.27 million.  Overhead allocations in (IT, 
Admin., HR, etc.), which are included in your figures below, represent $2.36 
million.  Finally, there is a little bit of "noise" still in these numbers, 
e.g., my cost centre, for some reason, is picking up a large share of all 
Amsterdam payroll costs, even though I only have one person in that office.  
The figures below are not intended to be all inclusive, and therefore will 
not necessarily add up $4.63 million.  Please feel free to contact me should 
you have any questions.

German-speaking origination     $482,000
Nordic market            43,500
Poland          326,500
Russia               7,000
Coal Trading            39,500
Climate Change Levy           60,000
UK Gas & Power (trading/origination/asset dev.)      532,500
Continental Power Trading        209,500
Continental Gas Trading        216,000
Central and Southeastern Europe       651,500
Ireland             41,000
Iberia (including Arcos)         161,000
Italy           221,000
EES (including Enron Direct and ETOL)       275,000
EBS                1,000
Benelux and France         306,000 

Mark Schroeder