If we have the flexibility to afford a potential significant acceleration of NewPower losses/liquidity issues ie) going to zero and we feel we have our trade credit adequately secured then the right call is probably to abandon the seats.   Mark what is your view?

Regards
Delainey


---------------------- Forwarded by David W Delainey/HOU/EES on 08/23/2001 04:26 PM ---------------------------
From:	Richard Causey/ENRON@enronXgate on 08/23/2001 08:52 AM
To:	Greg Whalley/ENRON@enronXgate, David W Delainey/HOU/EES@EES, Mark S Muller/HOU/EES@EES
cc:	John J Lavorato/ENRON@enronXgate, Rick Buy/ENRON@enronXgate 
Subject:	RE: NewPower

We are working hard to address the immediate New Power exposure.  Dave:  FYI it might actually involve Service Co. Mark, we are talking to Jimmie this morning on that idea. We will certainly review overall exposure as a part of this.

 -----Original Message-----
From: 	Whalley, Greg  
Sent:	Thursday, August 23, 2001 8:33 AM
To:	Delainey, David; Muller, Mark
Cc:	Lavorato, John; Buy, Rick; Causey, Richard
Subject:	RE: NewPower

we need to be really careful with a decision to get closer to the company, notwithstanding our fiduciary responsibility.  i do agree with either getting in or out.  we should either get more active, or abandon our board seats and get some distance.

 -----Original Message-----
From: 	Delainey, David  
Sent:	Wednesday, August 22, 2001 11:12 PM
To:	Muller, Mark
Cc:	Whalley, Greg; Lavorato, John; Buy, Rick; Causey, Richard
Subject:	NewPower

Mark, The word on the street is that the NewPower folks are getting further in trouble (ie) strange trading activity, etc. Looks and smells a little like the old EES.

Couple of opps:
	- get another shareholder on-side and demand an Enron led audit to confirm financial and operating health;
	- followed up by hostile exit of mgt team if significant issues arise.

Issues:
	- obviously pushes us into another level of complicity/fiduciary in a blow up or bankruptcy not unlike the issues we faced with Kafus et al; however, given our continued interest a significant control issue could result in a significant acceleration of a write-off of our existing position plus any outstanding credit.

I would recommend we force the management team to submit to a detailed audit as a part of a united shareholder iniative - Lets discuss.

Rick Buy, what is our current credit position?

Greg/John, do you have a view on this one?

Rick Causey, we  probably need a more "permanent solution" ot the NewPower issue.

Regards
Delainey