Re: Public Service Company of New Mexico

----- Forwarded by Tana Jones/HOU/ECT on 01/24/2001 09:11 AM -----

Robert Bruce@ENRON
Sent by: Robert Bruce@ENRON
01/23/2001 06:00 PM

To: Tana Jones/HOU/ECT@ECT
cc:
Subject: Re: Public Service Company of New Mexico

Tana, PSC is in the process of merging with Western Resources, a Topeka,
Kan.-based IOU with which we signed a very heavily negotiated ISDA master
late last year. When we send the draft of ISDA out, I think we should
consider sending out the version signed by Western Resources and tell them
it is the same document that their soon-to-be sister company already has in
place with us.

FYI, according to PSC's website, when the merger is complete, PSC and Western
Resources will both be owned by a newly created holding company. This may be
of interest to credit. -- Bob

Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
robert.bruce@enron.com

Tana Jones@ECT
01/23/2001 05:00 PM

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cc:
Subject: Public Service Company of New Mexico

At the request of Darren Vanek in Credit, we have done some preliminary due
diligence regarding the ability of The Public Service Company of New Mexico
to enter into financial transactions. Based on our conversations with them
and review of their Board Resolution, it appears:

1. They are an investor owned utility, not a governmental entity
2. Their Board Resolution ONLY approves electricity futures, options or
swaps, and gas or oil futures, options or swaps.
3. THEY CANNOT ENTER INTO FINANCIAL TRANSACTIONS OVER 18 MONTHS. It is
imperative that anyone trading with this counterparty be made aware of this
restriction

Please call me if you have any questions.