RE: TXU Imbalance

James, thanks for following up on this.

FYI to all, the agreement we have with El Paso has a fairly tight confidentiality provision that goes to internal (as well as external) communication of the transaction:

"No party shall make any announcement of the transactions contemplated hereby to any of its officers, employees, representatives, consultants or advisors other than those who have a specific and strategic need to be advised of such information, all of whom shall be advised of the strict confidential nature of such information."
The language stems from a problem we had when East Coast Power was sold late last year, but probably works to our advantage in this case. Suffice to say that this group needs to be plugged in on what's coming down the pipe. However, we need to limit discussion of the transaction to the maximum extent possible.

Thanks,

RH

-----Original Message-----
From: Armstrong, James
Sent: Monday, September 10, 2001 9:03 AM
To: Farmer, Daren J.
Cc: Hill, Garrick; Mazowita, Mike
Subject: TXU Imbalance

Daren, I wanted to check with you on the current status of the of TXU Pipeline imbalance for Tenaska IV. I noticed on the July statement I just received that the imbalance was at 125,374 MMBTU. I am not sure if you have been told, but Enron recently entered into a sale agreement with El Paso to sale our interests in this plant by the end of September. Talking with Rick Hill, he did not want to have a large imbalance liability with the pipeline at the end of September. Do you think this imbalance will be significantly resolved by the end of the month? You can call me at 3-7280 if you have any questions. Thanks.

James