August 27, 2001

Enron North America Corp.
Vince Kaminski
1400 Smith Street
30th Floor, Rm. 3036B
Houston, TX 77002-7361
1 713-853-3848

Dear Vince Kaminski,

This is to inform you of the release of @ENERGY v2.2. FTP download
instructions are available immediately. The download instructions are
included at the end of this email. Please see below for more information
regarding this new release.

Please confirm that your address above is correct by clicking reply and
send. If any changes need to be made, please make the changes above and
reply.

Here is an overview of the new features from the release notes:

@ENERGY (Forward Curve) No change.

@ENERGY (Basics) No change.

@ENERGY (Advanced) No change.

@ENERGY (Swing) No change.

@ENERGY (Weather) No change.

@ENERGY (Storage) Module  @ENERGY (Storage) is the new module for analyzing
storage contracts.  The two new functions specifically designed for
valuation and management of storage contracts are:
7	STORAGEOPT and  MCSTORAGEOPT

To get familiar with these new functions, we recommend that you first read
the brief description of the type of storage contracts supported in the
Instruments section. A description of the methodology used for valuation is
provided in Storage Methodology.  The template storage.xls will help you
understand in details input requirements, as well as the output generated by
these functions.

See the file fea\energy\ergnote.txt in your distribution for a list of bug
fixes.

Here is an overview of the new and changed features since Version 2.0.

@ENERGY (Forward Curve) No change.

@ENERGY (Basics) A control variate methodology Hull (1997) has been
implemented for valuation of American options (OPT), Black and
Mean-reverting models. It greatly improves accuracy at minimal cost in
speed. All models now supports new scalar risk measures corresponding to
parallel displacement delta, hedge, and gamma.  Average price/strike options
now support an alternative way of computing theta. The definition of Gamma
curves has been modified for all models.

@ENERGY (Advanced) A faster and more accurate methodology is used to value
spread options. Models affected are SPREADOPT, STRIPSPREADOPT, OPTSPREADOPT,
OPTSTRIPSPREADOPT. The new methodology dramatically improves speed. All
models now supports new scalar risk measures corresponding to parallel
displacement delta, hedge, and gamma.  Average price/strike options now
support an alternative way of computing theta. The definition of Gamma
curves has been modified for all models.

@ENERGY (Swing) The definition of Gamma curves has been modified for all
models.

@ENERGY (Weather) No change.

See the file fea\energy\ergnote.txt in your distribution for a list of bug
fixes.

Your input into the refinement of this product is welcome and greatly
appreciated. Any comments or suggestions may be sent to support@fea.com .

If you have any questions please feel free to contact us. We appreciate this
opportunity to be of continuing service to Enron North America Corp..

Regards,
Michelle Mendoza
Email to: Support@fea.com
               or
          michelle@fea.com
Direct Tel: +1-510-549-8702 *111
Financial Engineering Associates, Inc.


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To download @ENERGY via FTP, follow these instructions:

NOTE: Using EXPLORER leads to unpredictable results, so we suggest using
      NETSCAPE or a DOS shell.


USING NETSCAPE:

In the Location box type: ftp://energy@ftp.fea.com
Password: a9uk4xxk

energy-2.2-win32.exe is for Excel 7, 97SR1, 2000, XP;
		     for Windows 95/96/2000/NT/ME;
		     download and run on a local drive.

USING A DOS SHELL:

At a DOS prompt type: ftp ftp.fea.com
User: energy
Password:  a9uk4xxk

Type "binary" and hit 'return'.
Type "ls" for a list of available files.
Type "get" energy-2.2-win32.exe and and wait for the ftp> prompt.
Type "quit".

The file will be downloaded into the directory at which you entered the ftp
site.
Double click on the exe and follow the instructions on the screen.

-----
There is also a readme file which contains installation instructions.
You may wish to print this out for easy reference.

N.B.:  The password is only valid until the first Friday of next month.