Subject: Re: PGL manual confirmations
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 18 Apr 2001 07:06:00 -0700 (PDT)

It has been our practice to show this type of price change as an amendment to 
the original
physical transaction agreement.  

I have attached a template which we often us to document these changes.  We 
can then add the
language that Jeff Hodge developes into the amendment. 

From: Richard Tomaski@ENRON on 04/18/2001 10:25 AM
To: Bob Bowen/HOU/ECT@ECT
cc: Darron Giron, Jeffrey T Hodge/HOU/ECT@ECT, Hunter S Shively/HOU/ECT@ECT 
Subject: PGL manual confirmations

Have you had the chance to put together a template for ENA's manual 
confirmations of PGL's election to change their supply contract price under 
the flexible pricing provision?  It is important for their accounting 
treatment and compliance with their risk management policy that these 
confirmation reflect a changed physical deal not a new financial swap. 

Per Daron Giron, the preferred way to book these transactions in the Aruba 
book is to unwind the existing index sale and rebook the physical fix price 
sale.  

ENA would also like to add a disclaimer on the bottom of the confirmation 
that states something to the effect that decision to trigger these fix prices 
was PGL's decision and ENA didn't advise or recommend this transaction.  Jeff 
Hodge is working on what the actual language should say.  Let me know when 
you think you might have this template available.  I want to show PGL what to 
expect from ENA once they start triggering fix prices.  Thanks

Richard