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From:t..hodge@enron.com
To:legal <.taylor@enron.com<
Subject:FW: Louisville Gas & Electric General Terms & Cond's for call
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Date:Wed, 26 Sep 2001 06:50:46 -0700 (PDT)

Cc: craig.taylor@enron.com
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Mark:

Craig Taylor on the East Desk forwarded this to me. In looking at the material, it is clearly a financial deal. I would ask that you assign this to someone in your group and have that person get in touch with Craig.

Thanks,

Jeff

-----Original Message-----
From: Taylor, Craig
Sent: Wednesday, September 26, 2001 8:06 AM
To: Hodge, Jeffrey T.
Subject: Louisville Gas & Electric General Terms & Cond's for call options

Here are the documents I spoke to you about yesterday. Please advise at your earliest convenience as they are looking to do something as early as this week. Please let me know if I can provide you with additional information.

Thanks,

Craig
ext 3-7131

-----Original Message-----
From: "Murphy, Clay" <Clay.Murphy@lgeenergy.com<@ENRON [mailto:IMCEANOTES-+22Murphy+2C+20Clay+22+20+3CClay+2EMurphy+40lgeenergy+2Ecom+3E+40ENRON@ENRON.com]
Sent: Monday, September 24, 2001 11:03 AM
To: Taylor, Craig
Cc: Balmer, Chris; Jaynes, Pam
Subject: DRAFT HEDGE PLAN BID LETTER


Craig,

As we discussed on Thursday, LG&E is preparing to enter into a hedge plan.

LG&E's hedge plan is based on the use of call options. The Public Service Commission is expected to act on that proposal in the next few days.

Chris Balmer, Pam Jaynes, and I will be giving you a call on Tuesday to discuss LG&E's hedging plan, seek your comments, and address any issues or concerns you may have in advance of actually sending out the bid letters. We believe it will be useful to seek your input and answer any questions you may have at this point, since once regulatory approval is received the time to implement the program, seek bids, and consummate transactions will all have very short turn around times.

Attached are two documents which will be the basis of that discussion. The first is a draft Bid Letter and the second is the General Terms and Conditions under which the call options will be purchased.

Please review the attachment and pass them along to whomever may need to be involved at your company.

Thanks

Clay



- bidlet draft 09-24-01.doc
- GT&C.doc