Gentlemen,

Last Feb 22, I sent you an e-mail on an insurance concept to mitigate some of 
the risks of the Delmarva peaking deal.  In essence, the insurance policy 
would trigger off the sale of the asset to a third party, or other 
restructuring designed to recapture and repay moneys owed creditors such as 
Enron.  The basic formula would be (Asset Sale Proceeds - Debt - Moneys Owed 
Enron under both the Financial Buy or Financial Sell contracts = Loss).

I propose that Enron take the first $50/kw of loss and 10% of the balance.

Initial results from numerical analysis suggests I could pay $5 million for 
the policy.

I have attached a simple spreadsheet showing max. possible loss in any year, 
and equity write down each year under the maximum loss scenario.  The equity 
write down is designed to model the likelihood that equity will allow the 
project to go into bankruptcy.

regards,

Don