Re: Austin Turbine Take-Out from West LB

No issues from an accounting structuring perspective.

Since we are exercising the purchase option, I assume Enron is comfortable
putting four turbines on the balance sheet (actually netted in Costs in
Excess of Billings/ Billings in Excess of Costs pursuant to accounting for
construction contracts).

If you have any questions, please let me know.

Thanks.

Enron Global Finance

From: Catherine Clark 11/27/2000 11:28 AM

To: Ben Jacoby/HOU/ECT@ECT, David Leboe/HOU/ECT@ECT
cc: Eric Boyt/Corp/Enron@Enron, Sheila Tweed/HOU/ECT@ECT, Kay
Mann/Corp/Enron@Enron, Lisa Bills/Corp/Enron@ENRON, robtaylor@akllp.com
Subject: Austin Turbine Take-Out from West LB

Re: Purchase Option Assignment and Assumption Agreement for Austin turbines
I've added the equipment description in Schedule 1 and changed the date of
the agreement to November 30, 2000 (see attached redlined version).
Ben/Eric - can you verify that my unit numbers in Schedule 1 match your list
of unit numbers?
David - can you sign off on this for accounting?
Once we have sign-off from accounting, we can circulate the document once
more with Winston & Strawn. Hopefully it should be in pretty good shape by
tomorrow. Thanks,
-Catherine
x3-9943