Dave,
	How are you?  I hope all is going well with your new job.  I'm sorry we won't be able to meet this Friday.  Can I call or e:mail you to set-up another time?

I'll look forward to seeing you soon.

Thanks,
Lindy

-----Original Message-----
From: david.a.foti@accenture.com [mailto:david.a.foti@accenture.com]
Sent: Tuesday, October 30, 2001 10:01 AM
To: Donoho, Lindy; Harris, Steven
Subject: RE: ECS Contract Review & New Idea



Sounds good.  This Friday, mid-morning or later would be best for me.



David A. Foti
Accenture
2929 Allen Parkway,  Suite 2000
Houston, Texas 77019
713/837-1997


                                                                                                                   
            Steven.Harris@enron.c                                                                                  
            om                           To:     David A. Foti/Internal/Accenture@Accenture                        
                                         cc:     Lindy.Donoho@enron.com                                            
            10/30/2001 09:39 AM          Subject:     RE: ECS Contract Review & New Idea                           
                                                                                                                   
                                                                                                                   




Dave,
     If possible, I would like for you to sit down with Lindy and a few
folks from our group who have been looking at this. I want to make sure
that it would be an efficient use of your time and that we would not be
duplicating anything. I will have Lindy contact you so we can set something
up and then move forward as necessary. Thanks.
     Steve

    -----Original Message-----
   From:   david.a.foti@accenture.com@ENRON
   Sent:   Tuesday, October 30, 2001 7:20 AM
   To:     Harris, Steven
   Subject:  ECS Contract Review & New Idea

   Steve -

   I worked it out so you will be getting the lowest possible rate for my
   time, $175/hour (normal rate is $350).  I would like to send you an
   engagement letter this week for up to 3 weeks or 120 hours ($21k).  I
   think
   we can get it done in less time but the 120 hours provides some
   flexibility
   if we decide to go deeper on something -- we would only charge you for
   the
   hours we use.

   I am visualizing the deliverable as an analysis of your restructuring
   options as well as the NPV, Income, and operational effect for each.  To
   the extent time allows, I will be able to help negotiate and close
   whatever
   option you choose.

   In order for me to offer our preferred rate, it is important to note
   that I
   would need to be able to do this project on somewhat of a flexible basis
   (e.g. Friday meetings, emails, and phone vs. being on-site 3 weeks
   full-time).  Even with this flexible structure, I feel confident that we
   can have the deliverable complete by mid December.

   Please let me know if it is ok to draw up an engagement letter with
   these
   terms.


   ========================

   As for the new idea ----

   I have been spending much of my time lately helping merchant power
   generators think about ways to leverage the value of their asset
   position/market intelligence.  It occurred to me that there is an
   analogy
   here that relates to pipelines.

   Pipelines have operational "events" that may have  market effects:
       Unplanned outage  (major/minor/duration/notice)
      Planned outages over a certain volume
      Operation flow order/ SOLs
      Key Plants backed in
      Takes over schedule volumes key points
      Linepack levels
      Pressure drops at key points

   Since the pipeline is exposed to gas prices through  gas needed for
   operational purchases - it is rationale that these phenomena would  be
   studied and acted (read traded) upon in order to minimize TW's market
   risk
   (read generate income).  TW can setup a risk management group to execute
   this idea. It is not unusual for a pipeline to  have a risk management
   function -  Duke Pipeline for example has a VP of  Risk Management for
   Pipelines.

   These "events" would be studied in the follow way -

   1. Determine whether there is a correlation between  an  "event" and gas
   prices/basis differentials. - based on historical  data.
   2.  For those events that have a strong  correlations, develop a trading
   strategy around the relationship.
   3.  Back-test the trading strategy against  historical data - determine
   profitability.
   4.  For operational "events" that are  applicable, setup a system to
   execute program trading that is directly linked to  SCADA.


   Secondary benefits of this risk management (trading) strategy, would be
   developing the expertise to make decisions related to benefits of
   selling
   the capacity physical vs. through basis derivatives. (or some
   combination
   of both)

   Steve, if you are interested in this idea I can  start drawing up a
   workplan for this study.



   Dave





   David A. Foti
   Accenture
   2929 Allen Parkway,  Suite 2000
   Houston, Texas 77019
   713/837-1997


   ----- Forwarded by David A. Foti/Internal/Accenture on 10/30/2001 06:50
   AM
   -----

               David A. Foti
                                            To:     Steven.Harris@enron.com
               10/27/2001 04:13 PM          cc:
                                            Subject:     Contract Review &
   $20 MM RCM




   Steve -

    I have some ideas related to ECS contract restructuring options.  If
   your
   team is available I could come by next Friday mid-morning or later  to
   start discussing  with them.

   On the administrative side, I am working to nail down the lowest hourly
   rate I can get for you.  I would probably propose something like 80
   hours *
   rate, in the engagement letter.  This amount of time should be adequate
   to
   put together a short study on your different options.  I will send you a
   engagement letter this week.  I would just need to get that signed by
   you
   before Friday.

   Also, please let me know if you need any other information on the
   Reliability Centered Maintenance idea, as you prepare to talk to the
   other
   officers.


   Dave




   David A. Foti
   Accenture
   2929 Allen Parkway,  Suite 2000
   Houston, Texas 77019
   713/837-1997



               Steven.Harris@enron.c
               om                           To:     David A.
   Foti/Internal/Accenture@Accenture
                                            cc:
   Audrey.Robertson@enron.com
               10/11/2001 10:56 AM          Subject:     RE: TW Earnings
   Idea - Twist on ECS Deals






   Sounds great. Just check with Audrey (3-5849) and she can put you on my
   calendar. I am out all of next week. Thanks.

        Steve

       -----Original Message-----
      From:   david.a.foti@accenture.com@ENRON
      Sent:   Wednesday, October 10, 2001 3:52 PM
      To:     Harris, Steven
      Subject:  TW Earnings Idea - Twist on ECS Deals

      Hello Steve -

      Haven't talked to you in a while, hope all is well.  A quick update -
   I
      moved over from EES to Accenture's Energy group about six months ago
   and
      have been focusing on Trading and Risk Management & Pipeline
      Optimization
      projects.

      I had an idea which I thought you might find interesting.  Accenture
   has
      a
      strategic alliance with a technology provider for Reliability
   Centered
      Maintenance (RCM) -- basically an advanced methodology & technology
   for
      making maintenance decisions.  They are the standard for electric T&D
      companies and are now trying to move over into the pipeline segment.
      This
      is how I was thinking about using them to structure a deal:


      1.  TW hires Accenture to implement RCM
      2.  RCM Benefits are determined by a pilot project (4 weeks)
      3.  Accenture pays TW upfront for 10 years of projected benefits from
      RCM
      (say $20MM) as part of our "guarantee"
      4.  TW pays Accenture an annual licensing fee for the use of RCM over
      the
      next 10 years which will flow into the next rate case.

      I am currently pursuing another project with Ben Asante, so I am
   around
      the
      Enron building.  Let me know if you would like to get together to
      discuss
      further.

      Hope all is well.


      Dave
      713-252-9061 (mobile)




      David A. Foti
      Accenture
      2929 Allen Parkway,  Suite 2000
      Houston, Texas 77019
      713/837-1997


      This message is for the designated recipient only and may contain
      privileged or confidential information.  If you have received it in
      error,
      please notify the sender immediately and delete the original.  Any
   other
      use of the email by you is prohibited.




   **********************************************************************
   This e-mail is the property of Enron Corp. and/or its relevant affiliate
   and may contain confidential and privileged material for the sole use of
   the intended recipient (s). Any review, use, distribution or disclosure
   by
   others is strictly prohibited. If you are not the intended recipient (or
   authorized to receive for the recipient), please contact the sender or
   reply to Enron Corp. at enron.messaging.administration@enron.com and
   delete
   all copies of the message. This e-mail (and any attachments hereto) are
   not
   intended to be an offer (or an acceptance) and do not create or evidence
   a
   binding and enforceable contract between Enron Corp. (or any of its
   affiliates) and the intended recipient or any other party, and may not
   be
   relied on by anyone as the basis of a contract by estoppel or otherwise.
   Thank you.
   **********************************************************************





   This message is for the designated recipient only and may contain
   privileged or confidential information.  If you have received it in
   error,
   please notify the sender immediately and delete the original.  Any other
   use of the email by you is prohibited.






This message is for the designated recipient only and may contain
privileged or confidential information.  If you have received it in error,
please notify the sender immediately and delete the original.  Any other
use of the email by you is prohibited.