Subject: Cilco Transaction Summary
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Fri, 18 May 2001 11:15:52 -0700 (PDT)

Guys:
Here is another of the closed transactions for this quarter.  We need to identify target customers specific to these transactions and turn the structure/concept into a mass solicitation.   

I am setting a meeting for next week to go over the closed transactions and product development ideas.  I will be in Houston for the entire week and can be reached at 713/853-3855.

Thanx,
Laura

Congrats to Cary on the deal!
----- Forwarded by Laura Luce/Corp/Enron on 05/18/2001 01:11 PM -----

	Cary M Carrabine 05/18/2001 07:24 AM 	   To: Laura Luce/Corp/Enron@Enron  cc: Gregg Penman/Corp/Enron@Enron  Subject: Cilco Transaction Summary	

Cilco Gas / Power Deal

The following transaction was closed with Cilco on May 1st.  The transaction was worked 
in combination with the Power group.  

ENA buys a daily gas put @ $4.00 strike  -  Jan '02 thru Dec '02  -  NGPL Midcont  10,000/day (physical)

ENA sells power to CILCO into Illinois Power  -  Sep '01 thru May '02  -  20 MW;  5 X 16 @ $26.00

The key to the transaction is that CILCO is a gas/power combo utility.  The gas utility was willing to sell the 
gas option and allow the premium to be applied to a discounted power sale.  The profit from power sales can be
applied to their bottom line.

Summary:

Counterparty:  	Central Illinois Light Company
Structure:	ENA buys option / ENA applies premium to something the customer values
Term:		Any term structure that works for the customer

Value Proposition for Customer:  Transfer of premium to bottom line dollars
Value Proposition for Enron:	Cross commodity deal;  Gas option ownership;  Term deal with possible restructure at a later date

Value created:		$479,000	-	$229,660 Origination (Gas and Power)
							
						$250,000 Risk premium reserve for IP delivery

Required documentation:	Master Contracts

Potential Targets:	Gas / Power Combo Utilities with the ability to capture bottom line dollars.
			Utilities with unregulated affiliates

Please let me know if you have any questions.

Cary