As referenced below, we have this information.  Let's meet tomorrow to go 
over an implementation approach.
---------------------- Forwarded by Shona Wilson/NA/Enron on 02/05/2001 02:57 
PM ---------------------------
   
	Enron North America Corp.
	
	From:  Sheila Glover @ ECT                           01/12/2001 11:45 AM
	

To: Gary Hickerson/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Brent A 
Price/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Wes Colwell/HOU/ECT@ECT, 
Thomas Myers/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, Georgeanne 
Hodges/HOU/ECT@ECT
cc: Chris Abel/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Zhiyong 
Wei/HOU/ECT@ECT, Jeremy Wong/HOU/ECT@ECT, Stephen Stock/HOU/ECT 

Subject: ERMS DISCOUNTING Solution

Since December 1996, we have reserved for the over statement of our books 
because ERMS discounts from the first day of production rather than payment 
date (e.g. for gas the 25th of the following month).  The Calculaton for the 
ERMS Discounting Reserve is currently performed  monthly by Risk Controls and 
Reporting.  The December Reserve was ($7.8 million).  

At an ERMS/TAGG meeting this morning,  Zhiyong Wei and Jeremy Wong said that 
ERMS discounting could be corrected in two months.  Debbie Brackett, Chris 
Abel and I suggested that April 1st may be the best time to implement.  

Please advise Debbie, Chris or I of any concerns you may have with us 
implementing this ERMS calculation correction for a April 1st date.
Thanks, Sheila




---------------------- Forwarded by Sheila Glover/HOU/ECT on 01/12/2001 11:06 
AM ---------------------------


Clara Carrington
01/04/2001 10:38 AM
To: Brent A Price/HOU/ECT@ECT
cc: Sheila Glover/HOU/ECT@ECT 
Subject: ERMS DISCOUNTING MEMO FOR DEC 00



Clara