PML

FYI: The PML valuation process resulted in incremental "value" which can be
taken into income. I told Juanita and Andrea that it would be ridiculously
imprudent to take any more income. Andrea and her analytics staff tend to
agree with me but Delainey is on to it and will likely push to take it. I
told Ondarza and Delainey that I will not sign off on it. Without my
signature, Delainey may end up calling you. ENA has a Q4 hole that Cliff is
trying to fill. The income that ENA may try to squeeze from PML is
US$2-4MM.

On a related matter, Paul wants to take over the Board responsibilities (and
overall management) of the deal. Paul is comfortable with the value
recognized to date, and agrees with us that we should not take any more.
Given the related income form energy management (C$500M) and financial
advisory fee (approx C$1,500M), I think it is a good thing for Enron Canada
to manage.