Janice/Sara,

I had a message from Joe Hunter regarding the attached  proposed letter.  He 
said that this has not been implemented yet.  This is a proposal and it was 
based on Southern's format that they sent us for review.  He said that they 
are only going to use this for 4-5 financial counterparties.

So the real question is....Does legal approve of this method?  

If approved, then we will target certain counterparties for Power  (probably 
some of the major players).  

It will eliminate the need to sign the confirmations.
It will not eliminate the need to check the commercial terms and legal terms 
of the confirms.
It will not eliminate the need to send a copy of the confirmation to the file.
It will not eliminate the need to send a copy of the "list" to the file 
(there will need to be a copy made for each deal to be placed in each file).

I do not see where we are gaining a great deal of time savings with this 
method.  In instances where we send our confirm when we are the Seller and 
the Counterparty sends their confirm when we are the Buyer...both of us would 
be preparing this schedule.  

Overall, I am not opposed to this method.  I do want to talk to commercial 
and make sure they are in agreement.  Just let me know the final word from 
legal.  Thanks!

Kim Theriot






Janice R Moore
06/19/2000 02:28 PM
To: Kim S Theriot/HOU/ECT@ECT
cc:  
Subject: Confirmation Letter

fyi
Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax:  713-646-4842)
----- Forwarded by Janice R Moore/HOU/ECT on 19/06/2000 14:27 -----

	Elizabeth Sager
	19/06/2000 14:25
		 
		 To: Janice R Moore/HOU/ECT@ECT
		 cc: 
		 Subject: Confirmation Letter


----- Forwarded by Elizabeth Sager/HOU/ECT on 06/19/2000 02:25 PM -----

	Carol St Clair
	06/16/2000 09:25 AM
		 
		 To: Sara Shackleton/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Stacy E 
Dickson/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, 
Elizabeth Sager/HOU/ECT@ECT
		 cc: Larry Joe Hunter/HOU/ECT@ECT
		 Subject: Confirmation Letter

Joe Hunter has asked me to draft a form of confirmation reply letter that we 
could send to our counterparties in lieu of signing their confirmations.  
This form of letter with the appropriate chnages could also be used by those 
counterparties that we confirm.  Please let me know if you have any comments 
on this form or any concerns about implementing this process.  Thanks.
Carol