Greg, if this expenditure was not listed on Schedule4.13 (cap expenditure 
schedule), it will  exceed the Cap Exp limitation set forth in Section 6.2 
(h) of the Purchase and Sale Agreement; the threshold for permitted 
expenditures is $500,000 individually and $2,000,000 in the aggregate.   
Please consult with Brian about whether or not he wishes to discuss this with 
AEP.        Regards bng



	Greg Brazaitis
	01/17/2001 10:23 AM
		 
		 To: Nick Cocavessis/Corp/Enron@ENRON, James R Haden/HOU/ECT@ECT, Eugene 
Peabody/GCO/Enron@Enron
		 cc: Brian Redmond/HOU/ECT@ECT, Steve HPL Schneider/HOU/ECT@ECT, Barbara N 
Gray/HOU/ECT@ECT, Edward D Gottlob/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, 
Eric Gillaspie/HOU/ECT@ECT
		 Subject: Rio Nogales Power Plant, Seguin, Texas

Pace Global Energy, as agent for Constellation Power has announced that the 
fuel pipelines to feed the Rio Nogales Power Project LP, will be built by 
Pinnacle Natural Gas.  The project manager for Pinnacle will be Bill Janacek, 
a former VP of Operations with Transwestern Pipeline.  The plant is under 
construction and the pipeline work will be scheduled shortly.  

I have sent Constellation Power an interconnect agreement for Rio Nogales 
Power Project which would provide for the interconnection of the new pipe to 
Houston Pipe Line near Prarie Lea in Caldwell County.  The agreement is not 
yet executed.  I have put in a prepayment for the work as part of the 
proposal.  The amount for the interconnect and station is $640,000.  Please 
do not perform any work on the project until the interconnect agreement is 
executed.