---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on
24/08/99 02:18 PM ---------------------------


D'Arcy Carroll
24/08/99 05:44 PM

To:   Andrea Bertone, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:   Claudia Brun, Don Black
Subject:  Champion - legal

Pls find overview listed re ECE-Champion-Elektro transaction:

ECE selling equivalent of 3MW (Peak- and Off-peak) energy eg consumption
take-or-pay for period Sep - Oct - Nov
Price will be R$42.75 which represents 5% discount to present average
Elektro rate of R$45
ECE wants to adjust on a monthly basis the R$42.75 sales price downward 
should the price of PPI UK A$ cut size 80g index or the PPI UK A4  Reels 60g 
index average below Strike Price x (Pounds per Metric Ton).  The adjustment 
will be based on formula: Avg. Monthly hedged volume * (Index avg-Strike 
Price) * R$/Pound spot price

We are trying to finalize negotiations this afternoon re both the energy sale 
and the incorporated index and strike etc.,... and should feel like we have 
substantial flexibility to articulate how best to structure the transaction. 
Pls shoot any/all inputs including needs for additional information.