See below re follow up with Joe Deffner and John Arnold at the request of 
Mark Haedicke.



Enron North America Corp.
Mary Cook
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com
----- Forwarded by Mary Cook/HOU/ECT on 10/10/2000 09:56 AM -----

	Mary Cook
	09/29/2000 08:26 AM
		
		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc: 
		 Subject: Re: Enron Affiliates Using MG as Broker

I have since spoken with John Arnold and Joe Deffner regarding the matter.

Per John:  He sees some value in utilizing MG in the nature of broker fees 
reduction; however, his general estimate is only 2MM a year savings.  
However, he sees the value in the margin credit lines we now have and are 
continuing to increase.  I spoke with him briefly regarding the legal issues 
which I think he appreciated as significant.

Per Joe:  He also sees a limited economic advantage in respect of the broker 
fees.  However, he thinks the interest free margin lines provide us with 
greater value, in part due to increased liquidity and the insulation from 
funds flow volatility.  Joe thinks margin lines should be utilized first and 
then outside brokers.  He sees MG pretty much as any other outside broker.

If you have any questions, call.


Enron North America Corp.
Mary Cook
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com



	Mark E Haedicke
	09/25/2000 01:26 PM
		
		 To: Mary Cook/HOU/ECT@ECT
		 cc: 
		 Subject: Re: Enron Affiliates Using MG as Broker

Please call John Arnold and ask him where the traders are coming out on 
this.  Let me know.  Mark