Re: New Counterparty

We have zeroed out the mark to market value in the spreadsheets. Now there
still is "new counterparty" in the spreadsheet, but there is $0 in credit
risk for those. John Powell in Debbie's group is working on a longer term
solution, but everyone is comfortable with this for now.

Enron North America Corp.

From: Sally Beck 12/14/2000 11:31 AM

To: Jeffrey C Gossett/HOU/ECT@ECT
cc:
Subject: Re: New Counterparty

Thanks for looking into this and getting back to me. Let me know the final
resolution on this one.

Jeffrey C Gossett
12/13/2000 08:29 AM
To: Sally Beck/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Leslie
Reeves/HOU/ECT@ECT
cc:
Subject: New Counterparty

We have figured out why the credit group is getting so many "New
Counterparty" names in gas. The spreadsheets that they are getting that
information from are for position purposes only on pipe-optons. The value is
captured in TAGG and therefore if both had the correct counterparty it would
be doublecounting credit risk. The spreadsheet download has a specific
download that it has to follow which includes counterparty name (which in
this case had to be put in as new counterparty.) I am working with Debbie to
figure out how we can download those positions without showing a counterparty
at all from the spreadsheet. It will be done as quickly as possible.

Thanks