ESA's LM 6000's ,
 Larry, my understanding is that ESA has taken four units and that Janet 
Dietrich in conversations with ESA has made four more available to ESA 
subject to them getting their deal approved by the board.  So I do not 
believe Enron needs to committ to additional LM units at this time.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 08/04/2000 
04:10 PM ---------------------------


Larry L Izzo@ENRON_DEVELOPMENT
08/04/2000 11:30 AM
To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David W 
Delainey@ECT
cc: Dan Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff 
Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brett R 
Wiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike 
Coleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry 
Reynolds/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dick 
Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: ESA's LM 6000's

Guys, although I am hesitant to get in between ESA and ENA on this issue, my 
perception is that there is some confusion; we need to sort out at the top.  
Let me describe what I understand of the facts.  

First, ESA is coordinating a DASH through the RAC for eight LM 6000's.

Second, ENA has a list of 24 LM 6000's; the "ready to ship date" as shown on 
the following attachment; but only four of these are earmarked for ESA, as 
far as I understand.

Third, GE/S&S has approached me and is willing to sell us more LM 6000's if 
we need to.  The "ready to ship dates" for these new LM 6000's are between 
January - March, 2001.  We could possibly get these at the current preferred 
pricing (as a current contract change order).

ESA and ENA should discuss whether or not either party wants to buy some of 
the new LM 6000's that are now available for delivery between January - 
March, 2001.  Does ENA want to substitute any of these for LM 6000's 
currently on hand and not allocated to ESA?  Is ENA earmarking four 
additional LM 6000's on the attached list to ESA, and if so, which ones?  If 
not, does ESA want EECC to secure any or all of the remaining units required, 
which we can do quickly, off the balance sheet.

My perception is that there is confusion and not clear direction, I recommend 
that both of you have a discussion and establish a clear definition of what 
we are doing with the LM 6000's and whether either of you want to entertain 
the purchase of the new LM 6000's.  Let me know if I can help.

LI34400
larry.izzo@enron.com, james.bannantine@enron.com, brent.tiner@enron.com