---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/19/2001 
05:12 PM ---------------------------


"Dale M. Nesbitt" <dale.nesbitt@worldnet.att.net> on 01/18/2001 01:34:51 PM
Please respond to <dale.nesbitt@marketpointinc.com>
To: "Vincent Kaminski" <Vince.J.Kaminski@enron.com>
cc:  
Subject: Demonstration Proposal Status/Meeting


Vince:

I have come up for air since the holiday and all the machinations that have
befallen the California power markets.  Great for consultants and
independent generators and inbound FT owners but not perhaps so great for
others.  Lots of entropy in the system indeed!

I plan to be in Houston next week from Tuesday through Friday and would like
very much to get 1/2 hour of your time to kick off the demonstration project
I proposed just before Christmas if you are ready.  We are ready to provide
the top quality service that will be needed to give you and your gas guys
the concerted demonstration project you wanted.  I would prefer any time
Friday 1/26 or Wednesday 1/24 first thing in the morning if you have
flexibility.

We were able over the holiday to really make a lot of progress on finalizing
all of our fundamental modeling technologies--short and long run gas and
short and long run electricity.  I am really jacked up how our long run
models are predicting the amount of capacity that can profitably be absorbed
in ERCOT and where, the amount of capacity that can profitably be absosrbed
in California and the WSCC and where, and where gas price basis is likely to
go.  As you saw, our long run capacity addition technique is quite unique,
and I have not yet introduced the long run electric and gas models broadly
in the industry.  It is possible and realistic for Enron to get first mover
advantage (or perhaps more) based on the results of the demonstration
project we discussed.  Let's talk about that next week when we meet.

If you could confirm one of the two suggested times via email or phone at
650.218.3069 in the next day or two, that would be terrific.  I look forward
to seeing you again and to working together.

Also, I would like to get your advice regarding prospective investors in
MarketPoint.  I am starting to get serious inquiries from large companies
you know well who want to invest in MarketPoint as an equity paly, but I am
very reluctant to consider such investments by organizations other than
absolute, unequivocal industry leaders such as Enron.  I remember discussing
this briefly with you, but I would like to get your input with the benefit
of six more months thought if you would be willing when we meet.

Thanks, and all the best.
Dale Nesbitt