I wanted to provide you an update on where we stand related to several recent 
contribution requests.

Tom Delay's Request -- We did fulfill the $10,000 request that came to us 
from Tom and Christine Delay for the Fort Bend Child Advocates.  In addition, 
we've arranged with Heather for your family's foundation to match Enron's 
gift.  I spoke directly with Christine Delay several times and they are very 
appreciative of the gifts and our efforts to correct the initial oversight.

YMCA --  I've had multiple conversations with Heather about a combined 
Enron/Lay Family contribution to the YMCA.  According to Heather, you and 
Linda have agreed to contribute $500,000 and ask that Enron match.  We are, 
of course, willing to do that.  I am scheduling a meeting with Bill Phillips 
of the YMCA to discuss the gift.  We will be talking to him about naming 
opportunities as well as the YMCA's consideration of extending services to 
Enron employees at the downtown YMCA, as well as outlying facilities.  (FYI:  
The downtown YMCA recently chose to cancel the agreement we'd had with them 
allowing Body Shop members to utilize the facility.)

Other Capital Campaigns -- We are currently evaluating several other capital 
contribution requests.  Each is outlined below.  We are proceeding in several 
ways.  First, I am scheduling a meeting with Marty Sunde to discuss EES's 
interest in pursuing energy service agreements with these not-for-profit 
institutions.  As you know, EES is focusing its current efforts on much 
larger scale energy portfolios.  Secondly, I am working to evaluate these 
requests based on the leveraging opportunities associated with each.  
Finally, we want to be equitable in our giving to these local campaigns as 
well as consistent in our giving philosophy.  We are working to balance these 
requests relative to each other and to our goal to transfer dollars away from 
multi-year gifts toward programs.

Texas Heart Institute -- I had breakfast yesterday with Bob Devlin, Dr. 
Denton Cooley, Jack Doherty and Meredith Long.  They shared with me plans for 
a new Texas Heart Institute building in the Medical Center.  (The building 
will bear a striking resemblance to our buildings -- oval in shape and bluish 
glass.)  They are conducting a $75 million campaign -- $42 million to build 
and equip the building and $33 million to sustain programs in research and 
education.  They are requesting $1 million from Enron and will allow us to 
specify how the gift is spent.  American General and Shell Oil Foundation 
have each contributed $1 million

Baylor College of Medicine -- Amy Lee and I had lunch last week with several 
folks from Baylor.  They are in the midst of a campaign to fund their many 
programs in research and education.  We discussed opportunities to expand our 
existing medical-based literacy program - Prescription for Reading.  They 
also outlined for us numerous other sponsorship opportunities.  No specific 
dollar amount was requested.  While several pharmaceutical companies have 
contributed in the $500,000 to $1 million range, most of our local peers are 
within the $100,000 to $500,000 range.

University of Houston - MD Anderson Library and the Honors College -- As you 
know, the University is requesting $500,000 from Enron over 5 years to 
support renovation of the library.  Since our call with Harriet Latimer, I've 
conducted some research to determine what other local corporations are 
contributing.  Currently, no companies have made a financial commitment.  In 
fact, only Compaq and Shell have committed at all with in-kind 
contributions.  While I am confident that we will support this in some way, I 
am particularly interested in speaking with Steve Barth and Chet Gladchuck at 
the University to determine if the library could be rolled into the energy 
services agreement we are currently evaluating with the University's athletic 
department.

On a separate note, you'd forwarded to me a request from the University to 
fund a publication "The Future of International Education:  Directions & 
Opportunities."  Elyse Kalmans discussed this with her contacts at U of H.  
They indicated that this was not a high priority for them and would rather 
have Enron commit its resources to other University endeavors, such as the 
library.  We have chosen to decline this request.

I apologize for the length of this memo.  However, I did want to keep you 
updated on the status of these various requests.  I will present 
recommendations to you on each of these pending requests in the coming 
weeks.  In the meantime, if you have any questions or comments, please 
contact me.