Rating agency meetings

Hello,

As you know, this week I met with S&P on Wednesday and Moody's on Thursday.
S&P had three people there including Peter Rigby and William Chew (MD
infrastructure finance) and Moody's had eight people there including Susan
Abbot (MD corp. finance, power group). I thought the meetings went very
well. There was an active dialogue during both presentations and a lot of
questions were asked. The stated objective for both meetings was that Enron
has gone as far as we can with our product development working in a vacuum,
and that we feel we have developed a structure that covers the dominant
outstanding risk that merchant generators are exposed to (market prices), and
that we think this is enough to achieve an investment grade rating, but if
not then what more do we need. Both gave me no commitments but promised to
give me preliminary feedback next week.

We e-mailed copies of the presentation to both of you yesterday.

I suggest a conference call between Enron, Linda and Tom...maybe Tuesday next
week to discuss the rating agency meetings in more detail and to discuss
where we are in product and project development.

The lawyers are continuing to refine and discuss my proposed structure. Key
issues seem to be potential treatment of my two contract structure in
bankruptcy and whether or not my contracts are considered insurance. I will
keep you posted as we go.

Let me know what times are good for you.

regards,

Don Black
713-853-4750