Re: Westinghouse - State Group Claims

I concur contractually and legally. However, given that our total claim is
on the order of $0.4

From: Stuart Zisman@ECT on 04/20/2001 09:34 AM
To: Ross Newlin/HOU/EES@EES
cc: Mitch Robinson/Corp/Enron@Enron, Don Miller/Enron@EnronXGate, Kay
Mann/Corp/Enron@Enron

Subject: Westinghouse - State Group Claims

I spoke with Kay and she agreed that her interpretation of the settlement
letter was the same as mine (i.e. no waiver of warranty claims or claims of
faulty construction/design). Subject to Mitch's agreement (because he had
the primary role in the negotiation of that settlement with Westinghouse), we
would suggest writing a letter alerting Westinghouse of our claim and of our
desire to meet quickly to discuss this matter. The letter might also suggest
that if we are not able to resolve this matter quickly we expect to draw down
on the letter of credit. This latter threat might gain the level of
attention that we desire. Of course, I would be careful about how it is
phrased (it might be worthwhile to run it by Andy Edison, the litigator).

Stuart