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  y9
0

  Interoffice Memorandum

  To -Don Black, Rick Buy, Dave Delaincy, land Deitricb,'
John Lavorato, Louis Kitchen. Ted Murphy, David Port,
Cassandra Schuhz; Jeff Skillin . Greg Whalley, File Copy
  anagement
From: Chris Abel! Kenneth Thibodeaux Dcpedmcnt: Risk"
  Sudsjat Loss Notification Date: May 17, 2001
.Please note below the explanation of the loss exceeding risk policy limits as of the close of business May 16.2001.
Enron Americas - Power Trading
  Notification: Daily Loss Limit
Limit $54.00 Million
Daily Loss: $225.83 Million
Explanation:

  The daily loss of $225.83MM resulted mainly from adjustments in lES' California business. Contracts
with two entities, the University of California and 1BM, were unwound and they are now being served by
the utilities. This caused $74MM in losses_ Additionally, the PUC in California adjusted the tariffs for
delivery of power for both NP and SP, causing $171 MM in losses.

  Approvak
Trader

Risk Assessment and Control

ECTeOO1820159

EXH033-00248

GOVERNMENT
EXHIBIT
  2691
  Crim. No. H-04-25 (S-2)