---------------------- Forwarded by Mark A Taylor/EFS/EES on 05/28/2001 10:20 
PM ---------------------------
From: Melba Lozano/ENRON@enronXgate on 05/23/2001 11:36 AM CDT
To: Elizabeth Sager/HOU/ECT@ECT, Tom Moran/ENRON@enronXgate, Frank 
Hayden/ENRON@enronXgate, Stacey W White/HOU/ECT@ECT, Jeff 
Blumenthal/ENRON@enronXgate, Susan Musch/ENRON@enronXgate, Matthew F 
Gockerman/ENRON@enronXgate, Mark A Taylor/EFS/EES@EES
cc: Robert B Cass/ENRON@enronXgate, Chris Walker/ENRON@enronXgate, Kevin 
Meredith/ENRON@enronXgate, Carlos Alatorre/ENRON@enronXgate, Lisa 
Lees/ENRON@enronXgate, Stephanie Sever/ENRON@enronXgate, Karen 
O'Day/ENRON@enronXgate, Tana Jones/HOU/ECT@ECT, Karen 
Lambert/ENRON@enronXgate, Kelly Lombardi/ENRON@enronXgate 
Subject: US Power Phy Options - Approval Needed


Your review and approval of the following product types in the EOL 
Datamanager is needed (for directions on approval , please see steps for 
approval at the bottom of this e-mail). If you have any questions please call 
me at ext. 58986.   
******** DO NOT APPROVE PRODUCT TYPES BETWEEN THE HOURS OF 6AM - 
11AM***********

Traders:  Harry Arora and Robert Stalford
Product 
Names:  US East Power Phy Option Call (2077)
  US East Power Phy Option Put (2078)


  

US Pwr Phy Opt  PJM-W EPXXX Jul01 USD/MWh
A US Power Transaction with Enron Power Marketing, Inc., under which the Put 
Option Buyer has the right, but not the obligation, to elect on the Exercise 
Date to schedule and deliver, and the Put Option Seller would have the 
obligation to schedule, receive and pay for at the Strike Price, a quantity 
of firm energy equal to the Hourly Quantity for each applicable hour during 
the term of the transaction.  The Strike Price shall be as set forth in the 
Product description on the Website.  As consideration for this right, the Put 
Option Buyer shall be required to pay to the Put Option Seller the Premium 
which shall be equal to the product of (i) the price submitted by 
Counterparty via EnronOnline, multiplied by (ii) the total number of hours 
during the term of the transaction, multiplied by (iii) the Hourly Quantity.  
The Payment Date for the Premium shall be within two (2) business days of the 
Transaction Date. The Option style and type shall be a monthly European Put 
("EP").
The transaction is for the applicable hours as set forth herein on each 
Delivery Day for the Effective Date 01 Jul 2001 to the Termination Date 31 
Jul 2001.

The transaction is for delivery or receipt of energy at the PJM Western Hub.

The price is quoted in US Dollars per unit of volume, which will be the 
Contractual Currency. The unit of measure against which the price is quoted 
shall be megawatt-hours (MWh) and the quantity shown shall be in MW's 
delivered in each applicable hour for the duration of the Transaction (the 
"Hourly Quantity').

In order to exercise the Option, the Option Buyer shall provide telephonic 
notice to the Option Seller prior to 10:00 am (Eastern Prevailing Time) on 
the Exercise Date.  The Exercise Date shall be the second penultimate NERC 
business day of the month prior to the month in which the term commences.

The transaction is for on-peak ("Peak") hours on each Delivery Day beginning 
with the hour ending 0800 (7:00 am) and concluding with the hour ending 2300 
(11:00 pm) Eastern Prevailing Time. "Delivery Day" means a day during the 
term of the transaction that is a Monday, Tuesday, Wednesday, Thursday, or 
Friday, excluding any day that is a NERC holiday.

US Pwr Phy Opt  PJM-W ECXXX Jul01 USD/MWh
A US Power Transaction with Enron Power Marketing, Inc., under which the Call 
Option Buyer has the right, but not the obligation, to elect on the Exercise 
Date to schedule, receive and pay for at the Strike Price, and the Call 
Option Seller would have the obligation to schedule and deliver, a quantity 
of firm energy equal to the Hourly Quantity for each applicable hour during 
the term of the transaction. The Strike Price shall be as set forth in the 
Product description on the Website. As consideration for this right, the Call 
Option Buyer shall be required to pay to the Call Option Seller the Premium 
which shall be equal to the product of (i) the price submitted by 
Counterparty via EnronOnline, multiplied by (ii) the total number of hours 
during the term of the transaction, multiplied by (iii) the Hourly Quantity.  
The Payment Date for the Premium shall be within two (2) business days of the 
Transaction Date. The Option style and type shall be a monthly European Call 
("EC").

The transaction is for the applicable hours as set forth herein on each 
Delivery Day for the Effective Date 01 Jul 2001 to the Termination Date 31 
Jul 2001.

The transaction is for delivery or receipt of energy at the PJM Western Hub.
 
The price is quoted in US Dollars per unit of volume, which will be the 
Contractual Currency. The unit of measure against which the price is quoted 
shall be megawatt-hours (MWh) and the quantity shown shall be in MW's 
delivered in each applicable hour for the duration of the Transaction (the 
"Hourly Quantity').

In order to exercise the Option, the Option Buyer shall provide telephonic 
notice to the Option Seller prior to 10:00 am (Eastern Prevailing Time) on 
the Exercise Date.  The Exercise Date shall be the second penultimate NERC 
business day of the month prior to the month in which the term commences.

The transaction is for on-peak ("Peak") hours on each Delivery Day beginning 
with the hour ending 0800 (7:00 am) and concluding with the hour ending 2300 
(11:00 pm) Eastern Prevailing Time. "Delivery Day" means a day during the 
term of the transaction that is a Monday, Tuesday, Wednesday, Thursday, or 
Friday, excluding any day that is a NERC holiday.
==============================================================================

STEPS FOR APPROVAL:

click the  START button 
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD 
click the Enron Online Production Cluster "START" button  
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Partially Approved"
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up