2 primary contributing factors:

1) EOL transaction volume increase
2) CES acquisition




Paula Harris
10/09/2000 03:41 PM
To: Scott Neal/HOU/ECT@ECT
cc:  
Subject: East Gas Volume Confirmation

Scott,

As you are already aware, we have to provide volume (settled sales only) 
explanations to Investor Relations each month.  Given that it's a quarter end 
month, it is even more important that we receive good explanations which 
sufficiently support your trading business.  The format includes a year to 
year comparison, quarter to quarter comparison as well as a month to month 
comparison for any increases/decreases greater than 10%.  Your stats are as 
follows:

EAST GAS TRADING (Bbtu/Day - Settled Sales Only)

Year to Year
September 2000 7,258
September 1999 3,179
Increase  128%

Quarter to Quarter
3Q 2000  7,282
3Q 1999  2,910
Increase  150%

If you could send me an explanation explaining what's driving your increase 
by tomorrow morning, that would be great.

Thanks, Paula