PPA Litigation and Other Issues

Dan, initially Aleck Trawick was involved with our PPA position when this
matter only involved what seemed to be a narrow administrative law dispute
with respect to the Power Pool Council and its proposed rule changes.
Frankly, I never envisioned that if we were to pursue or consider pursuing
any remedies against Alberta, the Balancing Pool, the Power Pool Council
and/or the Power Pool, that the matter would be handled by Aleck. As you
know Aleck is putting together a memo due today respecting certain of these
issues. After that, I would like responsibility for this matter and all
litigation matters transferred to Robert Anderson and/or Dalton McGrath.

With respect to our conversation yesterday, the matter will be referred to
Jim Derrick, General Counsel of Enron Corp., and has been reviewed with Mark
Haedicke, John Lavorato, and Rob Milnthorp. At this time in the year Jim is
very busy, but Jim will review the matter and make decisions respecting the
use of Canadian counsel sometime in the New Year. From Rob Milnthorp's, John
Lavorato's, Mark Haedicke's and my perspective, Robert's and Dalton's
involvement in Enron litigation matters, and an increased profile for Mungo
Hardwicke-Brown on commercial matters, will be integral to any decision
involving Blakes.

In the meantime, please ensure that no new files for Enron or any of its
affiliates, whether initiated out of Calgary, Toronto or Houston, are opened
by Blakes without my prior knowledge or approval.

Regards, Peter.