Jerry/Eric/Frank,  

Attached please find a "Unit Contingent" call option proposal that I had 
promised you at our last meeting.  The thought here is Frontera could sell 
energy firm from the plant (once you become comfortable with its operation) 
and hedge most of the risk of a unit outage with this product.  The time to 
do this is when the premium for a firm product (roughly $5/MWh) is greater 
than the price of this product (roughly mid to high $2's).  You will find 
both an indicative proposal for Jun-Sep01 (I am not suggesting this term but 
wanted to give you a feel for the pricing) and the entire standard contract 
attached below for your review. 

This may require further explanation on my part but I thought I would send it 
to you now so you can become familiar with it.  Please call if you have any 
questions, - Mike 713-853-4258

 -----Original Message-----
From:  Ahn, Chris  
Sent: Monday, May 14, 2001 9:35 AM
To: Dean, Clint
Cc: Curry, Mike
Subject: re: Contingent Call on Fronterra



Chris Ahn
Enron Power Marketing, Inc.
T: (713) 345 3613
F: (713) 646 8055