FYI
---------------------- Forwarded by Melissa Ann Murphy/HOU/ECT on 06/05/2000 
01:46 PM ---------------------------
Dale Neuner   06/05/2000 11:18 AM

To: Leslie Hansen/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc: Eric Saibi/Corp/Enron@ENRON, Melissa Ann Murphy/HOU/ECT@ECT 
Subject: US East Power Financial Swaps - REVISED

Carol St Clair has confirmed for me that the GTC does not contemplate a 
'Correction for Prices'. John Suarez states that corrected prices must be 
'flagged' by the ISO with 75 minutes of publication and must be changed 
within 5 days. Since the GTC doesn't contemplate the issue and the mechanism 
is different from ISDA,  I have added some suggested language to the Index, 
as we should contemplate this issue in the Long Description.

My apologies for not having the attachment included in my last e-mail.

Dale

---------------------- Forwarded by Dale Neuner/HOU/ECT on 06/05/2000 11:14 
AM ---------------------------
Dale Neuner   06/05/2000 10:13 AM

To: Leslie Hansen/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc: Eric Saibi/Corp/Enron@ENRON 
Subject: US East Power Financial Swaps

The East Power traders would like to commence transacting on financial swaps. 
We had anticipated this, so the Product Type was already built and has been 
approved. The Index and Loadshape built with this Product were done so based 
on comments from John Suarez (the trader), who has approved the attached.

Leslie - please offer commets/suggestions from the power perspective.

Mark - final approval will need to come from you since this is a financial 
product.

Also, trading wants us to consider price changes for the Product because the 
prices published do change from time to time. I know that the ISDA 
Definitions contemplate a 30-day true-up, but I can't find a like provision 
in the GTC. So - I took a hack at some language to contemplate the issue:

"If the price published (as set forth herein) on any day during a 
Determination Period is subsequently corrected and the correction is 
announced within 30 calendar days of the original publication date, the 
parties agree that the corrected price shall take affect as if it were the 
price published on the original publication date and the Floating Price will 
be adjusted accordingly. Payments of the adjusted Floating Amount will take 
place 5 business days following notification by either party of a change to a 
published price."

Dale
3-9746