Update on what I'm working on.

Hi there.

Nothings comes off the list. New additions are as follows:

New transaction with Morgan Stanley Dean Witter, relating to the creation of
a jointly owned control area to address generation, transmission, and retail
load delivery. It is brand-spanking new, so I don't know much more than
this. It is being handled by Ozzie Pagan.

New opportunity with New Jersey Natural to develop projects using Fuel
Cells. Heather Kroll is the contact.

Sale of Blue Dog (GE) turbine. Likely buyer (at last word) is NRG. Could be
complicated if GE protests.

There's a rumor that we are buying some new turbines from GE, but I haven't
been contacted. The rumor came from
GE reps, who asked if I was working on it. Sheila isn't handling, either,
last I knew.

Everything else is the same. I expect to be in NYC in the middle of the week
to continue negotiations on the Co Op City deal (with Mark Bernstein).

Please let me know if you have any questions.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 02/04/2001 06:27
PM ---------------------------

Kay Mann
01/29/2001 07:36 AM
To: Barbara N Gray/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT
cc:

Subject: Update on what I'm working on.

Per Barbara's request, here's a summary of much of what I'm working on:

Co Op City asset management arrangement: In this deal, Enron would build a
small power generation facility for a housing co op in the Bronx, Co Op
City. We would arrange for O & M services, supply the fuel (primarily gas),
market their excess power, and, for the first 4 years, take 1/2 the offtake.
We are currently working to structure the transaction to keep if off the
balance sheet and maximize the mark. We are working on a term sheet, and I
will be in NYC later this week to continue negotations with the customer.
Mark Bernstein is the originator, Debbie Chance is the developer, and NEPCO
Houston is involved. I discussed outside counsel with Jeff, and I would
like to use John Klauberg at LeBeouf.

Sell of two development projects in Illinois. Two of the sites we have
developed (sans equipment) are up for sale, and Fred Mitro has contacted me
about supporting the transaction. Lisa Mellencamp had previously contacted
Bracewell about working on it, but I'm a little concerned about the amount of
experience of the person they have designated. I've asked Clark Thompson for
some information on his background.

SW 501d - our claim against SWestinghouse, and possible sale of the
equipment. We have issues with the vendor concerning the late delivery of
this equipment. We are also trying to sell the equipment (a
turbine/generator set) to Calpine.

Fuel Cells - last year Enron made a $5million investment in Fuel Cells, a
company which is developing an almost green form of power generation. We
received contingent warrants which we can cash in if we arrange for 55 mw.
We are working with an instrumentality of the state of Connecticut about them
buying 26 megawatts. We are working on the purchase agreement with FC, and
the project development agreement with the State. It is quiet right now, as
funding is figured out.

There's TurboPark maintenance stuff which pops up weekly.

GE - Sheila and I have a weekly phone conference with GE to work on a
standard contract for buying turbines. I've heard a rumor that we will be
buying some more, although neither Sheila nor I have been contacted yet.

I think this is a fair summary of the big ticket items.

Kay