Enron Mail

From:twanda.sweet@enron.com
To:rex.rogers@enron.com
Subject:TVA
Cc:
Bcc:
Date:Wed, 10 May 2000 09:46:00 -0700 (PDT)

On February 14, 2000, Enron North America (Enron) filed a declaratory
judgment action against the Tennessee Valley Authority ("TVA") in the Federal
District Court for the Eastern District of Tennessee, Chattanooga Division,
requesting that the court determine whether TVA defaulted under its power
purchase agreement with Enron by failing to pay undisputed invoices. On
March 6, TVA filed a counterclaim against Enron alleging that Enron
wrongfully terminated the power purchase agreement. Although no assurances
can be given, Enron believes that the ultimate resolution of these matters
will not have a material adverse effect on its financial position or results
of operations.