Keep me posted on this matter.  Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 10/20/2000 11:38 AM -----

	John Schwartzenburg@ENRON_DEVELOPMENT
	10/20/2000 09:36 AM
		 
		 To: Mark E Haedicke@ENRON_DEVELOPMENT, Frank 
Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Vicki Sharp@EES
		 Subject: Global Markets Legal Matter - Puerto Rico Claims and Disputes

I am copying Frank Sayre and Mark Haedicke on this memo because I understand 
that responsibilty  for this project is now somewhere between you two gents 
and therefore you both need a heads up. Vicki, you also need to be aware of 
this as well.

I attach a letter EECC signed and sent out to the EcoElectrica project 
yesterday re the need to schedule a senior management meeting to try and 
resolve outstanding issues and payments due EECC for this project, We have 
been trying to schedule meetings to resolve these matters since September, 
but the project, perhaps because of Mission Energy's impact, has not yet 
agreed to a meeting to resolve the matter.    

With David Haug's help  we were able to get a significant portion of 
undisputed payments that had been delinquent for some time (in some cases 
since before the first of the year) paid. including a recent payment of $6 
million. Even so, approximately $18 million still remains unpaid to EECC and 
seriously delinquent.  EcoElectrica has identified $8.4 million as being 
withheld in connection with disputed liquidated damage payments, but there 
remains an undisputed, unpaid balance of approximately $9.6 million that 
EcoElectrica has not offered any contractual or other explanation for 
withholding other than that  they are working on other matters.

Larry Izzo needs to get these claims resolved, and at least needs a 
commitment from EcoElectrica to a date for formal senior management 
discussions under the contract from the project. Failing that, he will be 
directing EECC to seek clearance to institute arbitration proceedings.