Initial Funding of enovate account

No response required - fyi.
---------------------- Forwarded by Kay Mann/Corp/Enron on 09/27/2000 06:34
PM ---------------------------

From: Gregg Penman 09/27/2000 03:49 PM

To: Mary Lynne Ruffer/HOU/ECT@ECT, Sam Round/HOU/ECT@ECT
cc: Kay Mann/Corp/Enron@Enron

Subject: Initial Funding of enovate account

Hello - In order to cross one more item off of the enovate setup list, I
would like to pursue the initial capital contribution required under the LLC
agreement of $100,000 from each member. Although we do not have loan
facilities in place or final cash management protocol, I believe the initial
funding can still take place. If anyone has any other thoughts please let me
know. If not, I would like to schedule the initial funding for Friday,
October 6th. I believe that Mary Lynne will prepare the necessary vouchers
and journal entries. I am assuming that Enron MW, L.L.C., as Member, will be
funding enovate, L.L.C. Does ENA then fund Enron MW, L.L.C.? (Kay? Mary
Lynne?)

As an update - Peoples' Board meets next Wednesday, Oct. 4th to approve the
risk management policy. Assuming approval, enovate will be free to transact
with third parties. Therefore, depending on payment terms, money will begin
flowing through the enovate account. Therefore, any loan docs and service
agreements should be in place by the second week of October.

Any thoughts, please let me know.

Thanks,

Gregg