Subject: Draft term sheet for oil-power spread option pruchase from FPL
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 26 Sep 2000 04:44:00 -0700 (PDT)

Melissa:  It looks like we'll need GTC's for a yet to be named FP&L 
counterparty to do this daily call option (spread).  Credit (Ed Sacks) knows 
about this deal.  You may want to think about the format.  Have we done this 
before?  Did you work on the Moosehead (Merrill Lynch) deal?  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 09/26/2000 11:40 AM -----

	Janice R Moore
	09/26/2000 10:13 AM
		 
		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Joe Gordon/Corp/Enron@Enron, Edward Sacks/Corp/Enron@Enron, Edward D 
Baughman/HOU/ECT@ECT
		 Subject: Draft term sheet for oil-power spread option pruchase from FPL

Further to my voicemail, here's the deal that John Llodra is trying to 
present today.  As I mentioned, I didn't get any definitive answers this 
a.m., but I think this deal has to be documented on an ISDA or ISDA-like  
form.  Let me know if I can help.  
Regards,
Janice

EB3861
Assistant General Counsel, Enron North America Corp.
713-853-1794 (Fax:  713-646-4842)
----- Forwarded by Janice R Moore/HOU/ECT on 09/26/2000 10:05 AM -----

	John Llodra@ENRON
	09/25/2000 10:31 PM
		 
		 To: Mark Dana Davis/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Paul J 
Broderick/HOU/ECT@ECT, Pearce W Hammond/Corp/Enron@ENRON, Joe 
Gordon/Corp/Enron@Enron, Janice R Moore/HOU/ECT@ECT, Edward 
Sacks/Corp/Enron@Enron
		 cc: 
		 Subject: Draft term sheet for oil-power spread option pruchase from FPL

All:

Attached is a draft of a term sheet for a financial resid-power spread option 
purchase by EPMI from FPL for NEPOOL.  I am hoping to share this term sheet 
with the customer sometime early-mid afternoon on Tuesday 9/26, so I'd 
appreciate any comments you all might have.  I will be out of the office in 
the morning at a customer meeting, but will be available by cell 978-314-5614 
or pager 877-246-3206 (i'll be in the car for a good 3-4 hours between 8 AM-2 
PM Eastern traveling to and from the mtg).   If you have trouble reaching me, 
please feel free to go through Joe Gordon at 5-8956; Joe is an Associate 
newly assigned to the Northeast mid-market team (Joe will only be around in 
the AM though).  

Some specific points I'd like to raise:

Oil price index/curve -- Pearce Hammond (structuring) and I spoke with Dave 
Botchlett (our resid trader) Monday about:  (1) the most appropriate resid 
oil index to use; and (2)  the "correct" resid curve consistent with that 
index.   Dave did not sufficiently answer these two questions, so I called 
Paul Racicot and asked him what he thought.  Paul suggested using the Platts 
Daily New York Harbor Resid Cargo Mean index (which i've included in the term 
sheet attached), as that was probably the most hedegable index.  Other 
alternitives that I am aware of include Platts Daily New York Harbor Barge 
Mean and perhaps others.    We have the daily option to "dispatch" the energy 
or not, so I think we want to use a daily oil index rather than a first of 
the month index, etc.  Paul Broderick - do you have any thoughts on this?  
Assuming the Cargo Mean is the right index, we then need to make sure the 
resid curve we use is consistent with that index.  Pearce - could you perhaps 
connect with Dana/Paul Broderick/Ed Baughman/Joe Gordon to see if we can come 
to aggreement on index and appropriate curve.
Resid-power coorelation -- Dana - what coorelation do you want to assume;  
Pearce, please connect with Dana to confirm that number.
Janice/Ed -- if it's not evident, this proposed transaction is with the 
unregulated marketing sub of Florida Power & Light, not the regulated 
utility.  We have done other trades with this entity so I'm assuming we're 
all set with Master Agreement, etc.  Does our basic Master cover financial 
structures like the one outlined in the attached?

Any comments/feedback you have would be much appreciated.  Thanks

Regards
John