just lost this deal due to changes my structuring group would not do- sucks- see below note from my customer- 
---------------------- Forwarded by Kay Quigley/HOU/EES on 11/06/2001 03:27 PM ---------------------------


"Ro, Nicholas H" <NHRo@kelsey-seybold.com> on 11/06/2001 02:50:47 PM
To:	"'kquigley@enron.com'" <kquigley@enron.com>
cc:	"Atkins, Judy E" <JEAtkins@kelsey-seybold.com>, "Kime, Jason T"	 <JTKime@kelsey-seybold.com>, "Raska, Doug X"	 <DXRaska@kelsey-seybold.com> 
Subject:	RE: KS Management - Texas DRAFT ONLY


Kay,

Thank you for the revised contract.  I would like to say that it was a
pleasure meeting you, and I have enjoyed our discussions on the telphone.

I would like to take this opportunity to be upfront with you.  Kelsey's
corporate philosophy is to adopt a customer-driven focus.  So when Kelsey is
a customer, our strong preference is to deal with companies that demonstrate
a customer-driven focus in negotiations -- our experience has been that
companies that demonstrate this focus in negotiations also demonstrate this
focus in service.

However, we have strong reservations that Enron does not take concerns of
potential customers seriously.  This concern manifested itself at our
meeting and, given the paucity of approved changes in the contract, has been
heightened.

Thus, we have made the decision that Kelsey should obtain its energy from a
non-Enron source.  I would like to emphasize that the decision is no
reflection on you; in fact, prior to our meeting, you had very nearly
convinced us that Kelsey should use Enron.

Good luck with your other customers.  Having met you, I know that you will
be successful in all of you endeavors.  If you wish to discuss this further,
please do not hesitate to call.

Nicholas Ro
Vice President &
Chief Compliance Officer
-----Original Message-----
From: kquigley@enron.com [mailto:kquigley@enron.com]
Sent: Tuesday, November 06, 2001 2:26 PM
To: Ro, Nicholas H
Cc: Atkins, Judy E; PDarmitz@enron.com
Subject: KS Management - Texas DRAFT ONLY


Nick, please see below draft of Kelsey contract with the approved changes
we have accepted.
I would like to discuss with you some of the other proposed changes.
I look forward to your call
Thanks
Kay
---------------------- Forwarded by Kay Quigley/HOU/EES on 11/06/2001 02:22
PM ---------------------------

 (Embedded     Enron Energy Services
 image moved
 to file:      From:  Jennifer Hillegonds
 pic05097.pcx) 11/05/2001 12:48 PM
               Phone No:    713-345-8868









To:   Kay Quigley/HOU/EES@EES
cc:   Paul Darmitzel/HOU/EES@EES, Deborah D Merril/Enron@EnronXGate, Denise
      Furey/Enron@EnronXGate
Subject:  KS Management - Texas DRAFT ONLY

Attached for review and approcal, please find a draft of the referenced
contract.  Please note that this document has not been redlined.  However,
the only changes to the contract are captured in Sections 10B, C & D -
Special Terms & Conditions.

Thanks, Jennifer

(See attached file: KS Management.doc)




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