Re: Utility Agency Credit/Legal Issues

Please update me on the issues. Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 10/12/2000 06:28 PM -----

Kevin M Presto
10/06/2000 02:25 PM

To: Rogers Herndon/HOU/ECT@ect, William S Bradford/HOU/ECT@ECT, Mark Dana
Davis/HOU/ECT@ECT, Doug Gilbert-Smith/Corp/Enron@ENRON
cc: David Portz/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Edward
Sacks/Corp/Enron@Enron, John J Lavorato/Corp/Enron@Enron, Mark E
Haedicke/HOU/ECT@ECT
Subject: Re: Utility Agency Credit/Legal Issues

Although I know there are specific circumstances for Entergy and Southern's
case (inadequate corp. guarantee language in the master agreements), I echo
Rogers comments. We must resolve these issues quickly.

In order to make the P&L and EOL targets that Lavo and Delainey have imposed
on East Power for 4th qtr 2000 and calender year 2001, we must be able to
transact with all load serving utilities and all merchant marketing shops.
We are agressively making markets in all regions in an effort to build
liquidity, and it is imperative to remove encumberances.

Bill Bradford & Elizabeth Sager,
Please place a high priority on cleaning up our "paper" with these
counterparties so my traders can make markets and transact freely.

Thanks.