Real Time Pricing In Effect

Greg, we maybe should discuss - I don't know that I disagree with Rogers action. My understanding is that we have added $10/MWhr premium on all deals until further notice; however, the impact of possible customer decision delays, un-available curves and the resulting idle sales force could cause a significant issue for Q3 retail financials. If the net result is some downtime for a couple days probably no problem - if it is more than a couple days it is very difficult to catch up. I will keep you in the loop.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 09/12/2001 10:04 AM ---------------------------
From: Rogers Herndon/ENRON@enronXgate on 09/11/2001 10:16 PM
To: Scott Gahn/HOU/EES@EES, Sean A Holmes/HOU/EES@EES, Berney C Aucoin/ENRON@enronXgate, Janet Dietrich/HOU/EES@EES, Greg Sharp/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Kevin M Presto/ENRON@enronXgate, Narsimha Misra/ENRON@enronXgate, John J Lavorato/ENRON@enronXgate, Tim Belden/ENRON@enronXgate, Jeff Richter/ENRON@enronXgate, Jeremy Blachman/HOU/EES@EES, Ron Bertasi/HOU/EES@EES, Narsimha Misra/ENRON@enronXgate, David W Delainey/HOU/EES@EES
cc:
Subject: Real Time Pricing In Effect

Everyone -

Effective immediately we are instituting real time pricing requirements for ALL deals due to the increased volatility and temporary liquidity issues in the energy and financial markets. This does not mean we are not offering products. It does mean that the Matrix/Direct Pricing will not be valid until further notice. Any deals executed as of 9/12 will need the direct approval of Berney Aucoin or myself. Please coordinate any pricing requests through Sean Holmes and the Deal Management Group. I am certain that everyone will understand the need to implement these requirements given the circumstances. I apologize for the inconvenience and plan to return to normal procedure as soon as conditions permit.

Please call with any questions.

Rogers Herndon