Subject: Review of disposed assets for residual value and/or potential exposure
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 27 Apr 2001 14:15:00 -0700 (PDT)

Louise:  Attached is an Excel file which lists the results of our search for residual assets or old assets with potential exposure. Most of the assets on this list are currently being monitored by Special Assets or Energy Capital Resources.  We included these assets on the list because they have not been very visible and we wanted to make sure that you were aware of their existence.  However, also included on the list are 3 to 4 transactions similar to Midwest Gas Storage in that it appears that they have not been on anyone's radar screen.  The scope of our review did not include any former Enron International assets now managed by Wholesale through the Global Assets group.

Our list is divided into 3 parts:  1) Retained assets, 2) Bankruptcy/ Guarantor Claims,  3) Transactions requiring legal documentation/ closure.  The Bankruptcy/Guarantor list is not an all inclusive list of bankruptcies for Wholesale but includes those merchant portfolio bankruptcies with a  low probability of recovery which are, of course, not a high priority for Legal.  We just want to make sure they don't completely disappear from our scrutiny.  You will also note that there are a couple of assets that require further review and we will advise you when we make a final determination.

Finally, we will take steps to include these assets in future portfolio reporting so that they can be closely monitored.

Many thanks to Dick Lydecker's group and Legal for their assistance to RAC in reviewing numerous disposed assets that resulted in this list.   Please call if you have questions.    Regards!     Rick C.