---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 05/05/2000 
05:26 PM ---------------------------


Zimin Lu
05/05/2000 10:23 AM
To: Stinson Gibner/HOU/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT 
Subject: Storage aduit letter




Stinson, 

This is the letter I am going to send out to Duffie.   Any comments ?
If you can think a better name for our model (ESVM), also let me know.

Zimin




Professor Darrel Duffie
450 Miramonte Avenue
Palo Alto, CA 94306

         May 5, 2000



Dear Professor Duffie,


I enclosed with this e-mail Enron Storage Valuation Model (ESVM) for your 
review.  The attached files include:  1) a brief documentation of the model 
(ESVM.doc), 2) c-code of the main routines, 3) Excel spreadsheet interface, 
4) ESVM.dll .

Dr. Vince Kaminski, Dr. Stinson Gibner and myself have spent about one year 
in developing this model.  With traders, feedback incorporated, the model 
results are close to reality.  Although there are features to be included, we 
believe the model is ready for your review.  We look forward to your comments 
and suggestions. 


Please feel free to contact me should you need additional detail.  


Sincerely,



Zimin Lu

Director, Enron Research
Zlu@enron.com
713-853-6388