January 26, 2001

Vince Kaminski
Enron North America Corp.
1400 Smith Street
30th Floor, Rm. 3036B
Houston, TX 77251-1188
1 713-853-3848


Dear Vince Kaminski,

This is to inform you of the release of @ENERGY 2.0. FTP download
instructions are available immediately. The download instructions are
included at the end of this email. Your CD's and manuals will be shipped to
you within 2 weeks. Please see below for more information regarding this new
release.

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

**WARNING: PLEASE NOTE THAT IF YOU DID NOT RECEIVED A LICENSE KEY FOR
@ENERGY AFTER JUNE 2000, YOU WILL NEED TO CONTACT SUPPORT@FEA.COM OR CALL
510.548.6200 TO OBTAIN A NEW LICENSE KEY TO ENABLE THE NEW VERSION.**

**Swing users: @ENERGY/Swing now replaces the "SWING" product. See the
@ENERGY user manual for a discussion of the changes. Contact FEA for the
necessary license keys. You will be able to run both the new and old SWING
simultaneously.

Heres an overview of the new and changed features since version 1.6:


@ENERGY (Forward Curve)
Jump parameters are now calibrated for use in other @ENERGY functions.
Inputs and outputs to POWERCALIB and COMCALIB have changed. See the
corresponding function syntax in the User Guide for additional information.
35-40% speed improvement. The module is now out of beta.

@ENERGY (Basics)
Different interpolation schemes on forward prices are now supported. If you
use INDEXSWAP , EXOTICSWAP, or OPTINDEXSWAP with floating price linked to a
series of futures dates, such futures dates need not be close to dates
specified in the forward curve input.  A new utility function, PATHUTIL,
allows you  to simulate and visualize price paths consistent with the models
supported by @ENERGY. 25-30% speed improvement.

@ENERGY (Advanced)
Different interpolation schemes on forward prices are now supported. If you
use OPTDIFFSWAP or DIFFSWAP  with floating price linked to a series of
futures dates, such futures dates need not be close to dates specified in
the forward curve input. CALSPREADOPT now allows for the specification of
two different mean reversion rates. 30-35% speed improvement.

@ENERGY (Swing)
SWINGOPT and STRIPSWINGOPT now allow for valuation of swing straddle
contracts with overall load constraints. 65-70% speed improvement. The
module is now out of beta.

@ENERGY (Weather)
30-35% speed improvement.


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
Support@fea.com
+1-510-548-6200
Financial Engineering Associates, Inc. (FEA)

****************************************************************************
*****************************
To download @ENERGY 2.0 via FTP, follow the following 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: 2rbzxgv5

energy-2.0-win32.exe is for Windows 95/98/2000/NT. Download and run on
a local drive.

USING A DOS SHELL:

At a DOS prompt type: ftp ftp.fea.com
User: energy
Password:  2rbzxgv5

Type "binary" and hit 'return'.
Type "ls" for a list of available files.
Type "get" energy-2.0-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.