Subject: Entergy options purchased for Contingent Call Option Book
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 10 May 2001 08:55:00 -0700 (PDT)

FYI. As part of our business plan to manage the power price risk for the 
contingent call option book we purchased the following options from the desk 
yesterday. It was not the most cost effective way to hedge ($40 for a $200 
call with underlying around $100), but it keeps us on track executing the 
business plan. As the portfolio becomes larger and we move to using swaps as 
well as options to hedge, we'll be better positioned to minimize our hedging 
costs.

We had a good meeting with Berkshire this morning on the reinsurance piece of 
the book. I'll have a syndication report prepared for you with status on 
Friday.

Per 
---------------------- Forwarded by Per Sekse/NY/ECT on 05/10/2001 03:57 PM 
---------------------------

From: Harry Arora/ENRON@enronXgate on 05/09/2001 03:38 PM
To: David Hoog/NY/ECT@ECT, Hai Chen/ENRON@enronXgate
cc:  

Subject: Entergy options

David

We dealt on the following

EPMI LT Options sold to you

 200 DC in July01 & Aug01 Entergy (On peak, financially settled against MW 
Daily) - 20 MW for upfront premium of $ 40 per MWhr
 200 DC in June01  Entergy (On peak, financially settled against MW Daily) - 
20 MW for upfront premium of $ 9 per MWhr

We need to setup a counterparty to put these in our books. If you can kindly 
let us know the name of the entity which is going to be our counterparty (I 
am hoping it is a 100% Enron Wholesale entity) we can put these in our books. 
Regular confirm can follow.  Hai Chen from our group will be calling you to 
book this deal.

Thanks

Harry Arora