Pastoria Update - Revised Power Asset Development DASH

The Pastoria DASH each of you signed last week has been modified at the
request of Jeff Skilling and Rebecca Carter. Late Friday afternoon, West
Power was advised to value the gas transportation on a PV10 rather than VaR
basis. The impact of this change was to increase the cost of the gas
transportation from $34MM to $102.3MM. The $102.3MM is a worst-case scenario
in that it assumes none of the capacity can be resold.

Also, RAC has advised that no new signatures will be required for the revised
DASH.

The revised DASH will be considered by the Enron Executive Committee this
afternoon in a special meeting along with other projects.

Attached for you convenience are (1) the original DASH (DASH dev final
dg.doc), (2) the final DASH before the Executive Committee
(DASH_Pastoria4_030901) and (3) a redlined comparision of the final to the
original (DASH_Pastoria4_0309091_redlined). Most all highlighted changes
reflect the substitution PV for VaR. A few minor changes were also made.

Should you have any questions, please do not hesitate to call me at
713.345.8992.