RE: This Weeks Earnings

Jody and Cris,

I became aware of the Duke deal late Monday. Spent yesterday validating their assumptions and value which is no where near US$15.6. The MTM value looks like it will be around US$4MM. We plan to finalized the MTM today. Remi was initially planning to prudence some of the value (with Lavo's approval). However, that was before we added the Pis/Cofins tax assumptions. Duke did pay us a R$15MM option premium on the deal. Robin Veariel confirmed that ECE received that money yesterday. Spoke with Paul Radous in credit and he is not taking a credit reserve because we are supposed to receive a parental guarantee.

I'll keep you posted.

Also, thanks for the message regarding the MTM. I passed it on to Stacey.

Martha

-----Original Message-----
From: Pierce, Jody
Sent: Wednesday, August 08, 2001 8:01 AM
To: Stevens, Martha; Sherman, Cris
Cc: Free, Darryl S.
Subject: FW: This Weeks Earnings

Martha -- do you know where $15.6 for the Duke deal is coming from?

Chris/Jeff -- Have you seen anything on the Duke deal yet?

I'd prefer not to put big #s on the hotlist until you guys are semi-comfortable with the deal.

Chris, thanks for the reply regarding Andersen and S.A. trading. Let me know when you hear back from them.

Thanks,
Jody

-----Original Message-----
From: Kishkill, Joe
Sent: Wednesday, August 08, 2001 7:38 AM
To: Free, Darryl S.; Jody Pierce/HOU/ECT@ENRON
Subject: This Weeks Earnings

Gents,

Lots of "noise" on what should be booked fot the Duke deal on this weeks Hot List (actually a done deal now). A "little bird" told me that it could be as high as $15.6 MM. Well, I do not buy it.

Before sending out the forecast this week I want to talk to you guys about what is inside the number we book for Duke. I will be getting prepared on this end.

Thanks,

Kish