Further to your letter to us (addressed to Mr. Tim Belden) dated August 14,
2000:

Enron thinks that the elimination of physical risk during the month of August
will be of commercial benefit because Enron expects that during the month of
August there will be transmission line derations affecting the hour ahead
market which will lead to TO debit charges by the CAISO. The elimination
of TO debit charges is a commercial benefit to Enron.