Morgan Stanley has advised me this morning of the following with respect to 
accounts:

1.  The name of the account must be identical to the name of the certificate 
holder.
2.  An account holding only a certificate(s) is subject to a minimum equity 
requirement of USD 500,000.

As the certificate holder is the Brazilian company PEP, the broker will 
require additonal equity.  I am still awaiting a broker response as to 
whether the certificate holder can execute a stock power in favor of the 
account holder thereby enabling us to lodge the certificate(s) in the 
existing (Enron Brazil Power Holdings XII) account.   Alternatively, the 
certificate(s) can be held in the Enron Corp. vault. 

Robert, when do you need to respond to BONY?



To: Bruce Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Pedro Henrique 
Oliveira/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kent 
Castleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lynn 
Aven/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nancy 
Muchmore/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sara Shackleton@ECT
cc:  
Subject: Instruction Letter to BONY

Attached is a proposed form of letter requested by BONY to issue the ADRS.  I 
am missing (i) the number of shares being placed on deposit with Itau, (ii) 
the location to deliver our ADRs and (iii) Itau's title as local custodian of 
the Brazilian shares.  I will find out the official title for Itau.  In 
addition, I am contacting Itau and getting contact information to provide our 
Brazilian brokers so that they can transfer the Brazilian shares to Itau.  
Let me know if you have any comments or suggestions.