Greetings all --
Given my rather other-world state on yesterday's conference call, I wanted to fire off an e-mail to you to summarize current commercial activities on the Renewable Power Desk. I appreciate all the work you guys are doing and feel as though we're really gaining some traction.

Green Power Market Development Group -- We will be submitting a proposal to the Wind Energy Working Group of the Green Power Market Development Group (headed by Mark Crowdis of Think Energy) on Tuesday with a variety of pricing proposals for products ranging from physical commodity with green tags to green tags with embedded call options. Richard and I are working together to develop pricing for tags in the Pac Northwest, California, Texas and the East. I feel good about our chances of getting something done with these guys as they are feeling the heat to do something concrete after making so many public declarations of intent. As we move forward, I think we should all do a lot of thinking about other companies we should approach for this type of product. Once the Enron Building is juiced with wind power, we will be able to approach other fortune 500 companies with a straight face and encourage them to become Green Power Alliance Customers. During the week of September 11, I plan to be in Houston to work extensively on drawing up the guidelines for the Alliance Program and working more closely with Richard and Stacey and their EES contacts to develop green power products for up-stream marketing and new origination efforts.

Los Angeles Department of Water and Power -- LADWP is the largest green power buyer among public power agencies in California. Their green power buyer is heavily understaffed (and somewhat outgunned in terms of industry knowledge). He has hired us to help him bring his contract negotiations to fruition, manage logistics for new projects and essentially sleeve new renewable power products through Enron's existing Master Services Agreement with LADWP. This is an exciting (although not very profitable at this point) opportunity to establish the nodes of the California Renewable Power Pool and we see this as a way to bring our Services Desk functions to bear on the renewable sector in California. I am meeting with FPL Energy next week to discuss becoming the logistics coordinator for their new wind projects in California.

Wind Development -- As you may know, I purchased an option on a large parcel of windy land in Central Washington with enXco, a wind development concern. We are marketing the project to two of the munis in the Pacific Northwest (Seattle City Light and Eugene Water and Electric Board). Both have expressed interest. This morning I am meeting with the City of Portland to try to convince Portland to follow Seattle's lead as a zero-carbon growth city and signatory to the type of Kyotoesque committments recently announced by New England legislators.

Renewable Portfolio Standard -- The proposed CA RPS has major implications for our business, from both a risk management and commercial opportunity perspective. We need to really drill down on this today and get as much insight as to the political climate as possible. Having witnessed the first meeting of the California Power Authority last Friday in Sacramento, I am personally convinced that the RPS will definitely be passed in some shape or form. If they pass a 1% requirement for new renewables next year, this translates into 430MWm off a 43,000MW peak load in CA. We have very good working relationships with several of the biomass generators in California, including generators with new resources, and we are actively negotiating a marketing agreement with one of them and considering taking a long position for the next couple of years. The critical question, of course, is who will actually have the short position in California? If it is just the DWR, then they will probably satisfy their requirement with their new renewables purchases. If the utilities end up serving load, they will be in the market looking for the least-cost resources, and new biomass will clearly be a part of the mix.

Pac Northwest RFPs -- Both PacifiCorp and Portland General Electric have RFPs out right now for green tags and retail marketing services. I am staying in touch with Bonneville Environmental Foundation, Green Mountain Energy and Community Energy to act as a wholesaler for their tag submissions. I want to get master services contracts in place with each of these entities to make it really easy for them to transact with us. We can use our market legs to get well-priced tags and then sell to them as they shoot for RFP successes. Bonneville Environmental, at a minimum, will need new biomass to blend in with their expensive wind energy tags.

Chicago -- Most of you probably met Mike Lindert at our Houston Renewables meeting earlier this month. He was the EES originator for the ComEd deal, and as you know, there is a significant renewable committment in Chicago. We need to get in front of the City of Chicago as soon as possible to talk about their next generation of renewable purchases. Stacey, I belive you have info on this.

Sustainable Products Training -- The Renewable Power Desk has donated RECs and CO2 offsets for the Sustainable Products Training in Austin, September 10 - 11. They are giving us lots of press and would like one or two of us to attend. If you are interested in heading up there for a day with me, please let me know. There should be a pretty good turnout among potential commercial and industrial customers.

Kinkos -- All indications are that our negotiations with Kinko's are going very well. The hope is to sell them a three-year fixed-price retail product and 100% wind tags. Richard and I are woking to source the tags. Success will be huge, as Kinkos is part of the Green Power Market Development Group.

I know that Richard and Stacey have other deals on the table, and Jesse has been busy working on finalizing our services deal with Edwards Air Force Base. I look forward to seeing you guys in Houston the week of September 11 and taking the next steps in formalizing our green product offerings.

Talk to you soon,

EM

Elliot Mainzer
Renewable Power Desk
Enron North America
121 SW Salmon St.
3WTC-0306
Portland, OR  97201
(503) 464-3706
(503) 464-3740 (FX)
(503) 709-6959 (CL)